Exploring Reforestation Beyond Carbon Credits: Insights from the American Brazilian Chamber of Commerce Panel

October 18, 2024

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The American Brazilian Chamber of Commerce recently hosted a panel, Investing in Reforestation in Brazil: Opportunities Beyond Carbon Credits. This sold-out event featured industry leaders like Milena López, our Head of R&D in the Americas, Mauricio Bianco, VP at Conservation International, Gerrity Lansing, Head of US Investments at BTG Pactual, and Brazil's Secretary of Commerce, Roberto Perosa.

In this blog, we delve into the key takeaways from the panel and explore how ACT is helping organizations decarbonize while promoting reforestation and sustainable agricultural projects.

The Role of Sustainable Agriculture and Reforestation in Shaping Brazil

Brazil’s Secretary of Commerce, Roberto Perosa, highlighted the importance of sustainable agriculture and reforestation through National Program for the Conversion of Degraded Pastures into Sustainable Agricultural and Forestry Production Systems (PNCPD). Approved by Presidential Decree in 2023, this initiative aims to incorporate 40 million hectares of degraded pastures into Brazilian productive systems for food, biofuels, and high-productivity forests through the adoption of sustainable production technologies. The Secretary emphasized that sustainable agriculture not only reduces harmful greenhouse gas emissions but also serves as a crucial method for carbon sequestration.

Empowering Farmers, Advancing SDGs: How ACT Drives Decarbonization

Representing ACT, Milena López shared her perspective on the broader impact of sustainable agriculture projects, stressing the importance of ensuring farmers are fairly rewarded for their efforts. She explained that ACT works on transactions that provide assistance to farmers while striving to create positive outcomes aligned with the Sustainable Development Goals (SDGs), including gender equality, better access to education, and improved healthcare in local communities.

“Projects like these not only reduce emissions but also promote gender equality, improve access to education and healthcare, and have a lasting impact on communities,” Milena remarked. “At ACT, we’re committed to helping corporates decarbonize, including reducing Scope 3 emissions in sectors like food and beverage, by integrating sustainable agriculture into their supply chains.”

Milena also highlighted how ACT’s approach aligns with international regulations and reporting standards, such as the Corporate Sustainability Reporting Directive (CSRD) and the EU Deforestation Regulation, as well as emerging policies in the U.S., like the U.S. Voluntary Carbon Markets Joint Policy Statement and Principles, released by the U.S. Treasury and senior advisors to the White House in May 2024. These regulations push corporates to take responsibility for deforestation-free supply chains and encourage high standards in voluntary carbon markets.

Collaborating for a Low-Carbon Future

Both Gerrity Lansing from BTG Pactual and Mauricio Bianco from Conservation International discussed their organizations’ reforestation investments in Brazil, highlighting how these projects are not only ensuring compliance with environmental regulations but also creating new employment opportunities in local communities. Gerrity further emphasized the financial viability of these initiatives, supported by BTG Pactual’s sale of 8 million carbon removal credits to Microsoft. This collaboration between financial institutions and NGOs demonstrates the powerful role partnerships can play in advancing sustainable reforestation efforts and generating both economic and environmental benefits.

Looking Ahead

The panel made clear that reforestation is much more than a carbon mitigation strategy—it is central to a broader, more sustainable approach to agriculture, land use, and economic development. Brazil’s reforestation efforts, in collaboration with corporates, financial institutions, and NGOs, offer a model for how climate projects can drive both environmental and social change.

Topics

Corporate Sustainability

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