By Mariana Grilli

Forest Code Law, Degraded Pasture Recovery Program, Low Carbon Agriculture Program and the Integrated Crop-Livestock-Forestry system.  

These are some initiatives by the Brazilian government to encourage sustainable agriculture — because agribusiness there can’t continue like it’s still the 1970s. 

In the last two decades, Brazil moved from being a food importer to the world’s grocery store. But the country’s leadership sees a need to increase sustainability to hold onto its export position. Factors contributing to this change in direction are: 

As a result, the Brazilian economy is undergoing major changes even though it still struggles to enforce policies that have existed for decades.  

For example, its Forest Code of 1965 requires landowners to maintain 35% to 80% of property in native vegetation. It also prohibits the clearing of vegetation in sensitive areas.  

However, the government has difficulties in verifying compliance and penalizing those breaking the law. This shortcoming incites international critics.  

Cattle and crops 

According to government data, Brazil has the most cattle in the world at 234 million head. Faced with requirements related to animal health and sustainability in its production chain, the country is reigniting discussions about herd traceability.  

Related:Cash flow limits Brazil acreage expansion

As for cropland, Brazil instituted a program to convert degraded pastures into sustainable agriculture and forest systems by converting nearly 100 million acres of low-productivity pastures into arable areas over the next 10 years.  

President Luiz Inácio Lula da Silva spoke about the program at COP28 in Dubai, where he argued that such rehabilitation can nearly double the area of food production in Brazil without deforestation, thus avoiding expansion into areas of native vegetation.  

Japan supports the initiative. In May, Brazil and Japan signed a memorandum of intent providing for joint actions aimed at research and development activities for the recovery of degraded land in Brazil.  

Edimar Queiroz, a livestock manager for Grupo Morena, a sugar and ethanol producer, says integrating livestock and crops or forests improves animal welfare.

Mixing it up 

One possibility for managing degraded areas is the Integrated Crop-Livestock-Forestry system, where three profitable activities are performed in one area of land: 

Related:Soybean market turns on Brazil

This forest captures carbon dioxide and methane, allowing agriculture to be more sustainable. 

According to Francisco Matturro, ICLF executive director, the integrated system is applied on about 42 million acres. With the emphasis on sustainability in the country, he expects that number to more than double.  

To offer a way to earn “green credits,” Brazil also instituted the Program for Financing Sustainable Agricultural Production Systems, or RenovAgro, which provides credit for investing in practices that adapt to climate change and have low carbon emissions. The mechanism seeks to contribute to the Paris Agreement on Climate Change.  

A growing pasture awaits the arrival of a cattle herd as part of a livestock-forest integration plan. The system also contributes to trees capturing methane gas emitted by livestock.

In addition to the federal government’s plan, private banks are also looking at the so-called green credit, which finances practices linked to environmental, social and government agendas.  

One effort is by Itaú BBA, a Brazilian financial institution. It plans to finance 1 billion reais (about $185 million) in sustainable practices  
by agribusinesses at reduced costs. 

Citi Brazil is allocating about 5 trillion reais ($910 billion) for sustainable financing, according to the bank’s president, Marcelo Marangon. The funding will focus on energy transition, highlighting the major role of the sugar-energy sector in enabling a low-carbon economy.  

It’s a big agenda, but it also begs the question: Can Brazil maintain its leading role as the planet’s grocery store while making these sustainability improvements?  

The world is watching as concerns increase over protecting the rainforest and climate.  

Grilli is a freelance writer from São Paulo, Brazil.