PCI Strategy
In December 2015, during the Climate Convention in Paris (COP 21), the Government of Mato Grosso launched the Produce, Conserve and Include (PCI) Strategy.
The PCI was built to raise financial resources for the State of Mato Grosso to support the expansion and increase in the efficiency of agricultural and timber production, the conservation of native vegetation, and the restoration of environmental liabilities in line with the Brazilian Forest Code Law.
It also aims to foster family farming and traditional communities, while reducing GHG emissions and enabling carbon sequestration, by controlling deforestation and developing a low-carbon economy.
This vision materializes itself in an ample plan of goals with three axis, built in a participative process which integrates the agendas from public actors, private and civil society.
PCI integrates existing policies and builds on previous efforts to reduce deforestation, expand compliance with the Forest Code, meet sustainability commitments in supply chains, create opportunities around REDD+, and promote economic development and social inclusion for small farmers and indigenous and traditional communities.
PCI's goals directly contribute to Brazil's NDC under the Paris Agreement and to the United Nations Sustainable Development Goals (SDGs).
If achieved, the goals represent:
- Reduction of 6 gigatons of CO₂ emissions (making PCI the world's largest sub-national initiative in climate change mitigation);
- Environmental regularization thus complying with the Forest Code in 100% of the rural properties in the State;
- Increase in agricultural GDP by R$ 5 billion;
- Inclusão socioprodutiva de 82.000 produtores familiares.
The PCI and the PCI Institute
implementation
In 2016, many efforts employed in PCI returned to its institutional structuring. In March, State Decree No. 468/2016 institutionalized the strategy within the State Government, also creating the main scope of its governance system. The State Committee of the Produce, Conserve, Include Strategy (CEEPCI) was established, a collegiate body composed of public entities, private sector, representative entities, and socio-environmental organizations.
The objective of CEEPCI is to serve as a platform for integrating stakeholders and agendas with actions that converge towards the goals. Decisions within the committee are preferably made by consensus, and when consensus is not possible, voting is conducted through blocs to allow the inclusion of new members who can contribute without disrupting the balance among institutions. CEEPCI's responsibilities include approving action plans for the three pillars of PCI (Produce, Conserve, Include); monitoring the implementation and achievement of PCI goals; and defining governance structures and resource mobilization mechanisms.
Between 2017 and 2018, CEEPCI also advanced in a strategic planning process, mapping over 200 initiatives in Mato Grosso related to the PCI Strategy, and identifying priority actions to advance goals in 5 key cross-cutting themes:
- 1. Financing mechanisms;
- Environmental regularization;
- Land regularization;
- Markets;
- Technology and best practices diffusion.
A Monitoring Committee was established, which in turn developed indicators for the goals, and a monitoring platform was created. A Communication, Value, and Engagement Committee was also formed, creating a portfolio of fundable projects and launching a Corporate Action Group of PCI aimed at engaging the private sector in actions within the territory. During this period, PCI also connects with territories and municipalities in the state through regional pacts formed in partnership with the Sustainable Trade Initiative – IDH. Mato Grosso also advances in forming strategic partnerships and making targeted investments towards goal implementation, including the State's MoU with IDH, the REM Program funded by KFW Germany and co-financed by the British government, PAGE – Partnership for Green Economy with the United Nations and the World Bank, among other private partnerships and investments.
In 2019, the new administration in the State Government of Mato Grosso mandated that the PCI Strategy (Produce, Conserve, Include) should be implemented in partnership with a private entity called the PCI Institute. Additionally, a action plan consisting of five pillars was defined:
- Structuring of the PCI Institute;
- Monitoring;
- Investments;
- PCI Regionalization;
- Communication;
In 2020, the formal process of creating the PCI Institute began, along with the hiring of two consulting firms:
- Conducting an overall assessment of the PCI Strategy from 2015 to 2020, where progress, challenges, lessons learned, results, and impacts of the goals in each of the three pillars of the PCI strategy were presented;
- Development of economic and financial analyses, and investment opportunities in the state of Mato Grosso resulting from the PCI strategy (currently being implemented in 2021).
Hiring of staff, consulting firms, and updating of goals:
- Hiring the team for the PCI Institute;
- Investment consultancy for PCI including analysis of executed resources, gap analysis for 2030, and possible funding models.
- Consultancy for the development of a Jurisdictional Guide for engaging companies in PCI.
- Hiring teams to coordinate the Regional Pacts of PCI in Sorriso, Juruena, and Cotriguaçú.
- Process of reviewing and updating PCI goals.
- Assessment of state PCI goals + 04 regional pacts.
- PCI 2022 Pitchbook (with 36 projects).
- PCI Corporate Engagement Guide (ISEAL).
- Territorial Intelligence Network (GIZ);
- Establishment of the Tangará da Serra Regional Pact.
- Guidelines for Regional Pacts (GIZ).
- Publication of Forest Facts of Mato Grosso.
- Creation of the CNPJ (Brazilian business registry number) for the PCI Institute on June 13th.
- Transition and hiring of a new executive director for the PCI Institute.
- New LIF/CGF project of R$ 20 million for the creation of new PCI Regional Pacts in 06 municipalities of the western region + Conservation.
- PCI 2023 Pitchbook containing 44 projects/initiatives.
- Creation of the PCI Pitchbook platform via Ecostage with support from GIZ.
Carbon Neutral Program
The Carbon Neutral Program of Mato Grosso aims to voluntarily reduce greenhouse gas emissions by 80% by 2030 and achieve net-zero emissions by 2035 (fifteen years ahead of the national target of 2050). The program contributes to the global Race to Zero campaign launched by the Climate Champions of the United Kingdom and Chile.
The program already includes 12 Priority Actions identified through a collaborative process involving the Government of the State of Mato Grosso, led by the State Secretariat of Environment of Mato Grosso (SEMA-MT), with technical support from the Climate Group (CG), Winrock International, Governors' Climate and Forests Task Force (GCF Taskforce), the Mato Grosso Forum on Climate Change (FMMC), as well as other key stakeholders from both the public and private sectors.
To view the Development and Assessment Report on Mato Grosso's Decarbonization Pathway.
When the PCI Strategy was launched in 2015, it recognized the importance of indigenous territories for achieving the conservation goals of the State, as well as acknowledging the need for socioproductive inclusion of the indigenous peoples of the State. However, it was also recognized that it would not be possible to design specific goals within the Strategy without the participation and leadership of indigenous peoples themselves in the process.
With the formation of the Federation of Indigenous Peoples and Organizations of Mato Grosso (FEPOIMT), it takes on a leading role in dialogue with the PCI and other public policies in Mato Grosso.
In 2017, FEPOIMT became part of the State Committee of the PCI Strategy (CEEPCI). Simultaneously, under the REDD for Early Movers Program (REDD+ REM-MT), with technical support and facilitation from Instituto Centro de Vida (ICV) and Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, financial and technical support was secured to conduct a participatory construction process and consultation for the Indigenous Territories subprogram of REM.
After an initial phase of training multipliers in 2017, in 2018, eight Information and Construction Workshops were conducted for the Indigenous Territories Subprogram of REM Mato Grosso, involving 42 indigenous peoples and over 1,300 participants. These workshops aimed at participatory development of Priority Themes.
In 2019, Mato Grosso, through a technical partnership between the Coordination of Climate Change and REDD+ (CMCR) of SEMA and ICV, initiated the project "Valorizando as Florestas de Mato Grosso" (Valuing the Forests of Mato Grosso). This project was financed under an agreement between the Government of Norway and the Governor’s Climate and Forest Task Force (GCF), managed and implemented by UNDP.
The project directly addresses priorities defined by the state and is part of efforts related to the PCI Strategy and the REM Program.
As part of the project, a socioproductive diagnosis of Indigenous Territories in the State was conducted for the first time.
Building upon the governance advancements and priority setting achieved under REM, as well as the diagnosis conducted in the "Valuing the Forests of Mato Grosso" project, the PCI Institute aims, in its 2021 Action Plan, to collaboratively develop with FEPOIMT and partners methods to enhance indigenous participation in governance and establish shared priorities.
- Attracting resources from international partnerships and cooperation to promote actions related to the PCI Strategy.
- Connecting public and private initiatives to meet the objectives proposed by the Strategy for efficient land use.
- Helping to ensure a low-risk environment for private sectors in both supply and investment, contributing to leveraging new businesses within the jurisdiction, expanding markets, and enhancing the state's image on the international stage.
- Testing new economic incentives and financial mechanisms, such as specific credit lines, risk reduction mechanisms for investors, compensation mechanisms, green bonds, and others.
- Field testing and sharing knowledge on intensification solutions, best practices, and restoration techniques.
- To be a driver of policy implementation and monitoring.
- Generating intelligence and collective knowledge for public and private actions.
Why Mato Grosso
- World agricultural powerhouse and Brazil's largest agricultural exporter.
- Largest national producer of grains and leader in beef production.
- Third-largest state in the Legal Amazon region, with significant
natural and ecological heritage. - Second state in Brazil to create the state law on REDD (Reducing Emissions from Deforestation and Forest Degradation).
- Significant reduction in deforestation since 2004 through public and private initiatives.
Cattle Ranching
- Recover 2.5 million hectares of low-productivity pasture areas by 2030.
- Increase productivity from 50 to 116 kg/ha/year by 2030.
Agriculture (soybean, corn, and cotton)
- Expand grain cultivation area in degraded pasturelands from 9.5 to 14.69 million hectares by 2030.
- Increase grain production from 50 to 125 million tons by 2030.
Native Forest
- Expand the area under sustainable forest management from 2.8 to 6 million hectares by 2030.
Planted Forest
- Expand the area of planted forests in already open areas from 317,000 to 800,000 hectares by 2030.
- Increase planted wood production from 4.9 million m³ to 11.75 million m³ by 2030.
Biofuels
- Increase biofuels production to 13 million cubic meters by 2030.
Deforestation
- Maintain 60% of the native vegetation cover in the state of Mato Grosso.
- Reduce deforestation in the forest by 90% by 2030, with 84% reduction by 2024, based on the baseline of 5,714 km² from 2001-2010 (PRODES), achieving 571 km²/year.
- Reduce deforestation in the cerrado by 95% by 2030, with 83% reduction by 2024, based on the baseline of 3,016 km² (SEMA), achieving 150 km²/year.
- Reduce 30% of heat spots compared to the reference period from 2010 to 2019 (28,300 heat spots) by 2030.
- Eliminate illegal logging by 2030.
- Eliminate illegal deforestation by 2030.
- Compensate 1 million hectares of land eligible for legal deforestation.
Environmental regularization
(Forest code)- Register 90% of rural properties (CAR) by 2024.
- Validate 90% of the Rural Environmental Registry (CAR) by 2024.
- Restore 1 million hectares (100%) of degraded riparian forest areas (APP) by 2030.
- Restore 5.8 million hectares (100%) of Legal Reserves, with 1.9 million hectares through reforestation, by 2030.
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Production and Market Inclusion
- 100% adherence of municipalities to the SEIAF system by 2030.
- Increase in grain production from 49 million to 125 million tons and increase in cattle productivity by 65% by 2030.
- Expand the share of family farming products in the National School Feeding Program (PNAE) to 30% by 2030.
- Increase access to credit through Pronaf from R$ 882 million to R$ 1.3 billion per year by 2030.
Land regularization
- Achieve land regularization for 70% of family farming plots by 2030.
