Investments
PCI Institute, through its Investment Committee, aims to facilitate the attraction of resources aimed at leveraging the goals of the Strategy in Mato Grosso.
Estimates made by partners around mid-2016 indicate a need for resources between R$ 30 billion to R$ 50 billion, including operational costs, investments, and technical assistance, for the full implementation of the PCI strategy by 2030.
Since its inception, the state of Mato Grosso has managed to secure a range of partnerships and projects supporting the Strategy. Additionally, PCI itself has developed a series of actions aimed at connecting investors, buyers, companies, and partners to the territory.
The establishment of PCI Institute, conceived as a managerial and financial instrument capable of attracting resources for programs and projects of the Strategy, will further enhance Mato Grosso's ability to attract investments aimed at sustainable land use.
Several institutions have participated and contributed to the PCI Investment Committee, including IDH, TNC, JBS, Agroícone, Casa Civil, ONF, EII, TNC and GIZ.
If your institution is interested in participating in this Committee, please reach out by email to: r.colombo@pcimt.org
In 2015, an estimate of the necessary investments to achieve the goals was developed by the stakeholders involved in the construction of the PCI Strategy and presented by the government during the launch of the PCI Strategy at COP in Paris.
The Forest Finance Initiative project, completed in 2016, aimed to contribute to a more sustainable future for the state of Mato Grosso by studying the economic feasibility of this transition. From the outset, the project partnered with the government of Mato Grosso through the State Secretariat of Environment. The data initially generated by the project were used to support the definition of goals for the Produce, Conserve, and Include (PCI) strategy launched by the state of MT during COP 21 in Paris in 2015.
The project, led by the Global Canopy Program with IPAM as the implementing partner in Mato Grosso, involves 13 partner institutions and spans across three distinct geographies: Mato Grosso and Acre in Brazil, and San Martin in Peru.
Between 2013 and 2016, researchers conducted 116 interviews with 42 different institutions to select the activities for analysis and to outline a transition scenario for Mato Grosso, focusing on the pillars of production, conservation, and sustainable livelihoods. The transition scenarios were not based on market demand projections but rather on the perspectives of stakeholders from each sector regarding the future of their activities, identifying bottlenecks and potential improvements using sustainability criteria (economic, social, and environmental).
According to estimates in this study, approximately R$43.4 billion in additional financing will be needed for investment and funding in the agricultural, livestock and forestry areas in Mato Grosso. These resources can be obtained mainly through the ABC Plan and PRONAF (National Program for Strengthening Family Agriculture). If the costs of protected areas are also considered, the total estimated cost of the transition in Mato Grosso over the next 15 years will be around R$46 billion.
With support from the Sustainable Trade Initiative (IDH), the consulting firm Trama was contracted to present the Implementation Plan 2017-2030 for the Produce, Conserve, and Include (PCI) Strategy of the state of Mato Grosso.
The objective of the work was to develop an action plan that contributes to achieving the goals defined for each of these pillars. For this purpose, the following work process was proposed:
Perform a mapping of the current conditions of the state context for the implementation of the PCI Strategy, involving a survey of secondary data on ongoing initiatives at the state and national levels, as well as conducting interviews with key stakeholders associated with the pillars of the Strategy.
Based on the mapping results, engage in discussions with society about the current situation of PCI and collectively develop action plans that enable and expedite the implementation of the Strategy, considering its objectives and goals.
The work dynamics resulted in a set of proposals grouped into 5 key cross-cutting themes:
i) Financing mechanisms
ii) Environmental regularization
iii) Land regularization
iv) Markets
v) Production and dissemination of technology and best practices
Across the 5 themes, there are 25 systemic actions that unfold into 105 steps, allowing progress in the key cross-cutting themes to ensure they function as enabling factors for PCI goals.
The work also identified the creation of a financial and managerial mechanism for the Strategy as a priority, which would become the PCI Institute.
The Tropical Forest Alliance is a multi-stakeholder partnership involving governments, businesses, civil society, indigenous organizations, and international organizations to advance an agenda of sustainable production of commodities.
PCI was presented at a Tropical Forest Alliance (TFA) event during the New York Climate Week in September 2016.
In November 2017, the Tropical Forest Alliance invited the then Vice-Governor of Mato Grosso to London for a preparatory workshop. The workshop included representatives from global civil society organizations and leading companies in supply chain and financial services sectors. The event coincided with the Innovation Forum, allowing the state to present PCI to a targeted group of global investors and donors. Feedback from this meeting was used to enhance the quality of individual projects for the Implementation Dialogue in March.
The Implementation Dialogue took place in São Paulo in March 2018. Successful cases selected by Agroicone for PCI were presented to investment groups such as Althelia Ecosphere and & Green Fund, private banks like ABN AMRO and Santander, multilateral banks such as the World Bank and Inter-American Development Bank, and buyers including Cargill, COFCO, Bunge, Walmart, and Carrefour, among others.
In March 2018, during the Second General Assembly of the Tropical Forest Alliance (TFA) in Brasília, the State of Mato Grosso officially became a member of the Alliance.
The Alliance is also part of the PCI Investment Committee and currently coordinates its Corporate Action Group.
In 2020, PCI was presented at the Jurisdiction Exchange Network of TFA.
https://www.tropicalforestalliance.org/en/news-and-events/news/jurisdictional-exchange-network-webinar-series
https://www.youtube.com/watch?v=PmvzzcrsQYs&t=429s
As part of TFA's efforts to support jurisdictional initiatives, the Jurisdictional Approaches Resources Hub was launched. This website is dedicated to listing tools of interest for companies and partners wishing to support jurisdictional initiatives, including the Landscape Scale Action for Forests, People, and Sustainable Production Guide: A Practical Guide for Companies.
You can learn more at: https://jaresourcehub.org/
Produced with the support of EDF and TFA, the PCI project pitchbook aims to provide a "menu" of projects happening in Mato Grosso for corporate engagement.
The goal is to make it easy for companies to understand how they can integrate sustainability efforts into their supply chains by aligning with jurisdictional strategies, thereby contributing to their success while also fulfilling their own commitments.
The projects in this book were selected based on a set of criteria developed by the PCI Committee. Each project has committed to supporting the goals of at least two pillars of PCI (Produce, Conserve, Include) and has demonstrated a commitment to zero illegal deforestation. These projects are already underway and have potential for replication throughout the state.
The pitchbook was launched at the Tropical Forest Alliance meeting in Bogotá, Colombia, in 2019.
Created by Climate Focus, WWF, and the Meridian Institute, this initiative aims for companies to prioritize sourcing from jurisdictions that implement programs to reduce deforestation and associated emissions. These jurisdictions will benefit from trade and additional revenues that complement potential climate financing associated with reducing forest-related emissions.
The criteria of the CJA are inspired by the FCPF, and PCI has been directing efforts to align Mato Grosso with these criteria.
You can learn more at: https://commoditiesjurisdictions.wordpress.com/approach/
Developed by IDH, SourceUp, formerly known as Verified Sourcing Areas (VSA), is an innovative model based on an online marketplace platform that connects demand for sustainably produced agricultural products with local sustainability advancements. The model can (i) help companies contribute to the SDGs through agricultural products at scale, (ii) address deforestation and social issues regionally through public-private partnerships, and (iii) facilitate learning on how companies and regional initiatives collaborate to enhance supply chain sustainability.
PCI, through its Executive Director, participates in the Global Steering Committee that helped develop the SourceUp tool.
You can learn more at: https://sourceup.org/
https://www.idhsustainabletrade.com/approach/sourceup/
Following the publication of the Pitchbook in 2022, the PCI Institute has developed an online platform in 2023 to ensure that all the initiatives in the PCI Pitchbook are updated on an annual basis. The platform is publicly available in the PCI website. Users are welcome to reach out to PCI team directly to ask for new initiatives to be uploaded all year-round. The platform will enable scalability and continuous updating of initiatives, as well as connection with companies, buyers, and investors.
