Mato Grosso is the leading producer of livestock and grains in Brazil, the world’s emerging agricultural superpower. It is the largest Brazilian producer of beef, with a herd of 28 million heads, and soy, with 26 million tons of soy produced in 2013/2014, one third of Brazil’s crop and 8% of global production. The state also has the highest historical rate of deforestation of any Brazilian Amazon state and of any tropical nation outside of Indonesia. From 1996 through 2005, it cleared an average of 7,800 km2 of forest each year in the Amazon Biome alone, driven by expansion of cattle ranching and agribusiness. Mato Grosso has already reduced deforestation 86%, while also achieving huge gains in soy and beef production through intensification. By slowing deforestation, Mato Grosso is a global leader in climate change solutions.
Despite this success, producers, government, and companies in the state have received very little climate finance or market recognition. Rising global demand for soy, beef and other agricultural commodities will add further pressure to remaining forests. Mato Grosso could achieve zero net deforestation and zero net forest carbon emissions if the right incentive systems are put in place. A multi-sector dialogue, involving several companies and organizations of the beef, soy and finance sectors, along with several civil society organizations, is discussing this theme.
The “Territorial Performance System (TPS)” is a strategy for driving large-scale transitions to low-emission rural development (LED-R) through “bottom-up” multi-stakeholder processes that build a positive agenda to reduce deforestation while improving well-being. The TPS approach is designed to align and harmonize public policies and markets to favor the transition to LED-R and deliver performance-based incentives to producers, communities and companies who are reducing deforestation.
The TPS approach has four interconnected components that work synergistically:
- Consensus on regional performance milestones
- Integrated incentive system to reward actors for transitions to sustainability
- Governance structure to facilitate implementation of the system
- Transparent, online monitoring platform
What We've Achieved
- Developed a TPS, including engaging >50 stakeholders from 5 major stakeholder groups.
- Mato Grosso Forest Pact is within reach that could keep more than 5 billion tons of CO2 out of the atmosphere by conserving rain forest and savanna woodland.
- TPS monitoring platform developed and adopted by partners, to be used for risk assessment.
- Formalized partnerships with powerful farm sectors.
- Progress in securing federal support for major finance mechanisms: Green Forest Bond & Territorial Performance Bonus matching fund.
- Developing approach for state-wide indigenous peoples’ consultation.
Oswaldo Carvalho, ocarvalho (@) earthinnovation (dot) org
Ane Alencar, ane (@) ipam (dot) org (dot) br