Description: 

A project promoting the adoption of sustainable low carbon emission agricultural technologies by mid-sized producers in the Cerrado states.

Background:

Since the early 2000s, Brazil has been in a steady state of economic growth. The agricultural sector alone has grown 25 percent from 2007 to 2012, and agriculture and livestock currently account for 8 percent of Gross Domestic Product (GDP), as well as 30 percent of exports and 19 percent of employment. Much of Brazil’s agricultural growth has taken place in the Cerrado biome, which is a savanna-forest mosaic located in the central part of the country and accounting for approximately one-quarter of its landmass.

The region is also important in terms of climate change due to carbon stocks located in its soils, which would contribute to greenhouse gas emissions if land use change associated with agriculture occurs. Additionally, deforestation, while recently on the decline, has the potential to worsen as new investors are attracted to the Cerrado region.

Objectives and Outputs:

This project, which seeks to promote the adoption of agricultural technologies that can reduce greenhouse gas emissions without compromising productivity and profitability, is the result of a partnership between the Government of Brazil, the World Bank Group, and CIF. CIF will provide $10.6 million in FIP funding from 2014 to 2020 to assist with the implementation of sustainable agriculture practices in the Cerrado.

From 2005 to 2010, greenhouse gas emissions from agriculture within Brazil increased from 20 to 35 percent. This trend is likely to continue as agricultural activity increases, much of which is taking place in the Cerrado region. To address growing concerns over greenhouse gas emissions, Brazil adopted a low-carbon agriculture plan in 2010 (also known as the ABC plan) in order to promote a decrease in GHG emissions alongside an increase in carbon sequestration. This plan promoted six technologies to achieve these results, including no-tillage farming systems, cultivated commercial forests, and animal waste treatment. In keeping with the goals of the ABC plan, the main objective of this project is to promote adoption of such technologies by mid-sized producers in the Cerrado region.

12,000 producers with medium-sized farms, as well as 160 ranchers, will be targeted by this project. These agricultural producers account for the bulk of production in the Cerrado, and will be given training on the scope and rules of the ABC plan, as well as the technologies that are promoted under it. Additionally, a technical assistance program will enable rural producers to receive support on ABC plan technology implementation. Lastly, project management, monitoring, and evaluation will ensure that other project components are fully carried out.

IBRD Project Portal

This project summary is drawn from draft project proposals [such as the PAD, PID, SAR, and country investment plan] and may not contain the most up-to-date information.

Project Details
Cover Note | Project Document | ISDS | MDB Project Implementation Services | Proposed Decision
Approved on April 29, 2014 (Approved Decision)
Approved amount(s):
USD 10.62 million (grant funding)
USD 485,000 (Second tranche)

Comments and Responses:
United Kingdom (April 23, 2014)
United Kingdom (April 28, 2014)
IBRD Response to United Kingdom (April 25, 2014)  

Project Preparation Grant (PPG)
Approved on May 4, 2012 (Approved Decision)
Approved amount(s): 
USD 100,000 (grant funding)
USD 265,000 (MPIS First tranche)