Brazil agribusiness sustainability transition requires up to US$ 511 billion

Transforming the Brazilian agribusiness sector toward a more sustainable model could require cumulative investments ranging from US$ 268 billion to US$ 511 billion (approximately R$ 2.6 trillion) by 2050. This finding comes from a report titled “Cenários e Custos da Transição Ecológica no Brasil,” produced by the Brazilian Center for Analysis and Planning (Cebrap) in partnership with ClimaInfo.

The necessary investments cover various areas, including the recovery of degraded pastures, the expansion of integrated production systems, green rural credit, traceability, and infrastructure improvements. Green rural credit is expected to be a major cost component, potentially reaching US$ 126 billion by 2050.

The report also compares these transition costs to the current systemic costs of Brazil's existing agro-food model, estimated between US$ 410 billion and US$ 526 billion annually. These current costs include operational expenses and “hidden costs” related to greenhouse gas emissions, environmental degradation, climate change, and health impacts.