Brazil carbon markets expand in agriculture and forestry sectors

The carbon certification market in Brazil is creating significant economic opportunities for the agribusiness and forestry sectors. In agriculture, certification is providing producers with access to demanding international markets and specialized financing lines, such as those offered by Rabobank. For example, producers using carbon-focused management techniques have secured export deals with companies like Louis Dreyfus Company.

Bayer reports that initiatives monitoring these areas have seen an average productivity increase of 11% and a 9% gain in production stability, with an average carbon sequestration of 2.1 tons of CO2 equivalent per hectare annually.

In the forestry sector, LEK Consulting estimates that restoration forests in Brazil could retain 9.6 million tons of carbon per year, potentially generating up to R$ 1.5 billion in tradable credits. The economic potential depends on strict criteria such as additionality, measurement, and verification. The market is expected to encompass various categories, including planted forests, conserved native forests, regenerated forests, and jurisdictional credits.