The sector we are exploring for the SIRI practicum centers on the palafitas, or stilt house communities, found throughout the riverine regions of northern Brazil. These settlements are often disconnected from formal infrastructure and rely on decaying foundations that struggle to withstand the daily tidal flows at the outlets of the Amazon River. Our project focuses on these communities and the potential to upgrade their living conditions using sustainably sourced timber. Rather than viewing these areas merely as informal settlements, we see them as part of a broader natural economy in which local resources can be used to support resilient and dignified housing.
Our team’s role is to build out the economic and financial model to support this transition. Like many sustainable initiatives, this project faces the challenge of a significant green premium, meaning it must balance high environmental standards with the strict budget constraints of federal social housing programs. To make the project economically viable, we are investigating how to identify and capture value throughout the supply chain, from sourcing raw materials for house production to final assembly. Although the project involves housing design, our primary responsibility is developing a financial structure that makes affordable social housing economically viable.
From this practicum, I expect to navigate the complexities of Brazil’s economy, including the role of state-owned banks and public institutions, and to better understand how these actors influence infrastructure development. We are evaluating various nature-based solutions, such as sustainable forest management, the generation of carbon credits, and sawmill waste reduction, to uncover potential sources of value that could help lessen construction costs. My primary expectation is to learn the practical challenges of building a reliable supply chain. By the end of this project, I hope to have a clearer understanding of what it takes to design a supply chain that meaningfully benefits the communities it is intended to serve.