BR-X1028 : Low Carbon Agriculture and Avoided Deforestation for Reducing Poverty

Project Status

Brazil is the world's 4th largest CO2 emitter and ranks 85th in the Human Development Index global list. Brazil is crucial for delivering international objectives on biodiversity and forests, including the target of halving deforestation in developing countries by 2025: it is home to the world's largest tract of virgin rainforest, a fifth of its fresh water and perhaps a third of its biodiversity. The proposed intervention aims to reduce 10 million tons of CO2 over 20 years; avoid the emission of 6 million tons of CO2 emissions from deforestation over the same period; and improve income and reduce poverty in rural areas. It will also result in multiple benefits for biodiversity and ecosystem services conservation, as well as improved climate resilience. Thanks to its availability of land, favorable climate conditions, water abundance and technological progress, Brazil¿s agricultural sector has reported significant growth in recent decades, becoming one of the main levers of economic growth in the country. Agribusiness currently accounts for a quarter of GDP and employs about 25 million people. But Brazil`s agriculture superpower status abroad contrasts with in-country inequalities. 424,000 farms out of 5m establishments (8% of total) produce 85% of total agriculture output and make a monthly income of more than 10 times the Brazilian minimum wage. Those farms are the large benefiters from agricultural policies such as pricing, quality control, rural credit, export, innovation and environmental conservation. On the other hand, medium and small producers lack support in terms of technical assistance services, credit, official purchase of surplus production when prices plummet etc. But these farmers have a great potential to improve their income, by making each hectare sustainably produce more. This group needs a differentiated agricultural policy that brings about solutions such as adequate credit, capacity-building, creation of cooperative systems, purchase of surplus production by the government etc. To sum up, solutions that enable sustainable food production and poverty reduction. Government and private sector have progressively been convinced of the need to balance environmental standards and sustained growth. Therefore Brazil pledged to reduce deforestation by 80% by 2020 and reduce its land use emissions by 6%. If achieved, those will avoid around 669 MtCO2e for deforestation in 2020 and 165MtCO2e for agriculture in 2020 " the latter equivalent to the economy-wide cuts proposed by S Africa or S Korea. Brazil has developed a sectoral plan on how to achieve reductions from the agriculture sector " the Low Carbon Agriculture Plan or Plano ABC ¿ which will complement the activities of this TC.


Project Number BR-X1028
Operation Number ATN/DE-13768-BR
Country Brazil
Project Type Special Operation
Project Subtype Grant Co-financing contributions (PSG)
Environmental and Social Impact Category B
Project Status Implementation
Approval Date APR 3, 2013
Contract Signature Date MAY 14, 2013
IDB Financing * 20.59


Total Cost H USD 39,200,000
Financing Type Non-Reimbursable Technical Cooperation
Fund DEF
Reporting currency USD - United States Dollar
Reporting Date OCT 31, 2015
Estimated Cofinancing H USD 20,587,612
Undisbursed Amount H USD 8,543,575
Disbursed to Date R USD 12,044,037
Key Value
H Historical
R Revalued

*For active and closed projects, the IDB financing at Board approval is shown in US$ millions. This does not reflect any cancellations. For projects in Preparation the amount shown is the Estimated IDB Financing. Approved projects shows either Estimated IDB Financing or Historic Approved amount. The IDB financing for projects in the pipeline is indicative and may be modified during the project preparatio

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