Brazilian Sustainable Taxonomy: Inputs for Classifying Land Use Activities

The report analyzes national and international frameworks to support the creation of the Brazilian Sustainable Taxonomy for land use. It highlights the significant variance in sustainability measurements—ranging from 1% to 44% of rural credit for the 2022/23 year depending on the criteria used—and recommends a technical, scientific, and gradual implementation process. The document details specific criteria from the EU, Colombian, and Mexican taxonomies, as well as domestic initiatives like the ABC+ Plan and FEBRABAN, to identify areas of consensus and points of attention such as the 'do no significant harm' (DNSH) principle.

• The Brazilian Sustainable Taxonomy is being developed by the Ministry of Finance with a first version expected by November 2024 and mandatory adoption scheduled for January 2026.
• Land use activities are a critical focus for the taxonomy because agriculture and land-use change, primarily deforestation, account for three-quarters of Brazil's greenhouse gas emissions.
• A case study on rural credit reveals that the proportion of credit aligned with sustainability objectives for the 2022/23 agricultural year varies drastically from 1% to 44% depending on the chosen classification reference.
• The report recommends that the taxonomy be implemented gradually, starting with a pilot in the banking sector, and that it include 'enabling activities' such as Technical Assistance and Rural Extension (TARE).
• There is a significant risk of conflict between the 'do no significant harm' (DNSH) principle and existing regulations, such as the Brazilian Forest Code, which allows for certain legal deforestation margins.
• The Colombian Green Taxonomy (TVC) utilizes a non-binary classification system for land use, categorizing interventions into three levels: basic, intermediate, and advanced or transformative.
• The Mexican Sustainable Taxonomy uses a 'main parameter' of Greenhouse Gases and Compounds (GyCEI) Mitigation Contribution, applying specific metrics like gCO2e reduction for crops and cattle, and forest carbon stock increases for forestry.
• The EU Taxonomy requires that sustainable activities make a substantial contribution to at least one environmental objective, do not cause significant harm (DNSH) to others, and meet minimum safeguards.
• The ABC+ Plan identifies specific low-carbon technologies, such as the No-tillage System (SPD), but the report notes that less than 15% of crop areas using direct sowing fully adopt the complete SPD concept.
• The FEBRABAN Green Taxonomy classifies financial flows at the level of economic activity using CNAE subclasses, which the report argues is insufficient for land use and requires more granular data at the rural property or operation level.

APA

Oliveira, W., Coser, G., de Moura, C. M., & Souza, P. (2024). Brazilian Sustainable Taxonomy: Inputs for Classifying Land Use Activities. Climate Policy Initiative. https://www.climatepolicyinitiative.org/wp-content/uploads/2024/05/Brazilian-Sustainable-Taxonomy.pdf

Chicago

Oliveira, Wagner, Gabriela Coser, Carolina Moniz de Moura, and Priscila Souza. Brazilian Sustainable Taxonomy: Inputs for Classifying Land Use Activities. Climate Policy Initiative, 2024. https://www.climatepolicyinitiative.org/wp-content/uploads/2024/05/Brazilian-Sustainable-Taxonomy.pdf.

Wikipedia

{{cite report |last1=Oliveira |first1=Wagner |last2=Coser |first2=Gabriela |last3=de Moura |first3=Carolina Moniz |last4=Souza |first4=Priscila |title=Brazilian Sustainable Taxonomy: Inputs for Classifying Land Use Activities |publisher=Climate Policy Initiative |date=May 2024 |url=https://www.climatepolicyinitiative.org/wp-content/uploads/2024/05/Brazilian-Sustainable-Taxonomy.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{oliveira2024brazilian, author = {Oliveira, Wagner and Coser, Gabriela and de Moura, Carolina Moniz and Souza, Priscila}, title = {{Brazilian Sustainable Taxonomy: Inputs for Classifying Land Use Activities}}, institution = {Climate Policy Initiative}, year = {2024}, month = may, url = {https://www.climatepolicyinitiative.org/wp-content/uploads/2024/05/Brazilian-Sustainable-Taxonomy.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }