Accelerating green incentives in rural credits

Led by: Instituto de Manejo e Certificação Florestal e Agrícola (IMAFLORA)
Sector: Finance

“Brazil is living through a crucial moment and has a great opportunity to accelerate the transformation of agri-food systems towards a low-carbon economy. Agricultural credit is a key instrument for this change. Improving this instrument of economic policy will make it possible to realign incentives to boost decarbonising models."

-  Isabel Garcia-Drigo, Climate and Emissions Manager, IMAFLORA

The project will assist both the Ministry of Finance (MF) and the Ministry of Agrarian Development (MDA) in creating criteria, indicators, and rules for an information and classification system. This system will evaluate and track low-carbon practices and other sustainability standards at the farm level. The goal is to confirm farms' qualifications for green incentives available through rural credit lines under the Plano Safra and Plano Safra da Agricultura Familiar.

Furthermore, the initiative will aid the MDA in establishing technical coefficients for the Productive Forests Project, contributing to the development of a Payment for Ecosystem Services (PES) system tailored for family farming producers. Additionally, this project will directly assist Banco do Brasil, Brazil's leading agricultural credit provider, in crafting science-based targets in alignment with the 1.5°C goal. This effort will be guided by the Science-Based Targets Initiative (SBTi) criteria specifically designed for the Financial Sector.