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This report by the Climate Policy Initiative (CPI/PUC-Rio) evaluates the effectiveness of the 'ABC Recuperação' credit line, a subsidized financing instrument designed to restore degraded pastures in Brazil. Focusing on the Cerrado biome for operations between 2016 and 2018, the study uses satellite imagery and econometric analysis to determine if the credit led to actual pasture recovery or land-use changes. The findings indicate that the credit's impact is modest, with little evidence of recovery in severely degraded areas and a tendency for the credit to facilitate the conversion of high-vigor pastures into agriculture rather than restoring low-vigor ones.