Challenges to Fostering Low-Carbon Agriculture Through Public Policies and Support in Brazil

This research paper examines Brazil's efforts to foster low-carbon agriculture through public policies and rural credit. It details the transition from the ABC Plan (2011) to the more ambitious ABC+ Plan/RenovAgro (2021), which targets 72.68 million hectares of sustainable land use by 2030. While Brazil has seen massive productivity gains, the paper highlights a gap between total rural credit and the amount specifically dedicated to low-carbon investments. It also discusses 2023 regulatory changes that tie credit access to strict environmental compliance, including the Rural Environmental Registry and the absence of environmental embargoes across all biomes.

• Brazil's agricultural productivity saw significant growth between 2000 and 2013, with overall productivity rising 105.6% and livestock farming productivity increasing by 172%. During this period, pastureland for livestock decreased by 16%, reaching approximately 161 million ha in 2023. However, this growth is linked to negative environmental externalities including biodiversity loss, greenhouse gas (GHG) emissions, and deforestation.
• The ABC Plan, launched in 2011, aimed to reduce agricultural carbon emissions through targets such as recovering 15 million ha of degraded pasture and implementing 4 million ha of integrated systems. The Ministry of Agriculture reported that the plan exceeded its goals, covering 54 million ha of agricultural land and treating 38 million m3 of animal waste, resulting in a reduction of 193.67 million Mg CO2eq between 2010 and 2020.
• The ABC+ Plan (renamed RenovAgro in July 2023) sets more ambitious targets for 2030, aiming to reach 72.68 million hectares. Specific goals include recovering 30 million ha of degraded pasture, implementing 10 million ha of integrated systems, increasing no-till planting on 12.58 million ha, and applying bio inputs on 13 million ha. The policy emphasizes the necessity of monitoring, reporting, and verifying the implementation of these technologies.
• Despite the availability of rural credit, a small portion is dedicated to low-carbon investments. Agroicone's methodology found that in the 2022/23 crop year, only BRL 6 billion (6.2%) of the total BRL 97 billion in rural credit was dedicated to low-carbon agriculture, with BRL 3.9 billion of that coming from ABC+/RenovAgro. Conversely, a Climate Bonds Initiative (CBI) analysis of 21 programs found that 71.4% of resources were aligned with CBI taxonomy eligibility criteria.
• Since 2023, access to rural credit has become more restrictive due to tighter socio-environmental requirements. Credit is now denied if there is a cancelled or suspended Rural Environmental Registry, if environmental embargoes exist (across all biomes, not just the Amazon), or if the business is on non-designated Public Forest Type B land without specific ownership titles or land regularization. To balance this, 2024 incentives provide interest rate discounts for firms with recognized certifications or those who benefited from RenovAgro in the last five harvest years.

APA

Harfuch, L., Lima, R. C. A., & Lobo, G. D. (2024). Challenges to Fostering Low-Carbon Agriculture Through Public Policies and Support in Brazil. International Institute for Sustainable Development. https://www.iisd.org/articles/policy-analysis/low-carbon-agriculture-brazil

Chicago

Harfuch, Leila, Rodrigo C. A. Lima, and Gustavo Dantas Lobo. Challenges to Fostering Low-Carbon Agriculture Through Public Policies and Support in Brazil. International Institute for Sustainable Development, 2024. https://www.iisd.org/articles/policy-analysis/low-carbon-agriculture-brazil.

Wikipedia

{{cite report |last1=Harfuch |first1=Leila |last2=Lima |first2=Rodrigo C. A. |last3=Lobo |first3=Gustavo Dantas |title=Challenges to Fostering Low-Carbon Agriculture Through Public Policies and Support in Brazil |publisher=International Institute for Sustainable Development |date=2 December 2024 |url=https://www.iisd.org/articles/policy-analysis/low-carbon-agriculture-brazil |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{harfuch2024challenges, author = {Harfuch, Leila and Lima, Rodrigo C. A. and Lobo, Gustavo Dantas}, title = {{Challenges to Fostering Low-Carbon Agriculture Through Public Policies and Support in Brazil}}, institution = {International Institute for Sustainable Development}, year = {2024}, month = dec, url = {https://www.iisd.org/articles/policy-analysis/low-carbon-agriculture-brazil}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }