Brazilian Sustainable Taxonomy: Inputs for Classifying Land Use Activities

The document outlines a framework for the Brazilian Sustainable Taxonomy, specifically focusing on land use activities such as crop production, cattle, and forestry. It argues for the need for harmonized, technical, and verifiable criteria to direct financial flows toward sustainable production and prevent greenwashing. The report proposes a phased implementation approach, suggests a three-tier verification system (automatic, remote, and on-site), and highlights the importance of interoperability with international standards. It also identifies critical challenges, such as defining the scope of the 'do no significant harm' (DNSH) principle and determining the appropriate level of granularity for classification (economic activity versus rural property).

• The Brazilian Sustainable Taxonomy is a key part of the Ecological Transformation Plan, with the first version expected by November 2024 and mandatory adoption scheduled for January 2026.
• Defining sustainability criteria for land use is critical for Brazil because agriculture and land-use change, mainly deforestation, account for 75% of the country's greenhouse gas emissions.
• The choice of classification reference significantly impacts the measurement of sustainable credit; for the 2022/23 agricultural year, the proportion of credit aligned with sustainability objectives ranged from 1% to 44%.
• The report recommends a three-tiered verification system to ensure cost-effectiveness and scalability: 'Automatically eligible' projects using existing data like SICOR, projects requiring 'remote checking' via sensing tools, and those requiring 'on-site verification' through technical visits.
• The 'do no significant harm' (DNSH) principle presents a challenge when sustainable practices conflict with current regulations, such as the Forest Code's legal deforestation margins or health regulations regarding pesticides.
• Using the National Classification of Economic Activities (CNAE) is insufficient for land use; the taxonomy should apply at a more granular level, such as the specific finance operation or the rural property.
• Implementation should be gradual and participatory, potentially starting with a pilot in the banking sector before expanding to the more dispersed capital market.

APA

Climate Policy Initiative (2024). Brazilian Sustainable Taxonomy: Inputs for Classifying Land Use Activities. https://www.climatepolicyinitiative.org/publication/brazilian-sustainable-taxonomy-inputs-for-classifying-land-use-activities/

Chicago

Climate Policy Initiative. Brazilian Sustainable Taxonomy: Inputs for Classifying Land Use Activities. 2024. https://www.climatepolicyinitiative.org/publication/brazilian-sustainable-taxonomy-inputs-for-classifying-land-use-activities/.

Wikipedia

{{cite report |author=Climate Policy Initiative |title=Brazilian Sustainable Taxonomy: Inputs for Classifying Land Use Activities |date=6 May 2024 |url=https://www.climatepolicyinitiative.org/publication/brazilian-sustainable-taxonomy-inputs-for-classifying-land-use-activities/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatepolicyinitiative2024brazilian, author = {{Climate Policy Initiative}}, title = {{Brazilian Sustainable Taxonomy: Inputs for Classifying Land Use Activities}}, institution = {Climate Policy Initiative}, year = {2024}, month = may, url = {https://www.climatepolicyinitiative.org/publication/brazilian-sustainable-taxonomy-inputs-for-classifying-land-use-activities/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }