PCI Investments
In 2023, the MT Productive Program was approved by the Legislative Assembly and the World Bank. The program is an $80 million loan with a $20 million counterpart from the state of Mato Grosso to support family farming in Mato Grosso. The Secretariat of Family Agriculture will be responsible for executing the loan, which aims to support the strengthening of approximately 16,000 family farmers, along with environmental and land regularization. The MT Productive Program contributes to the goals of the "Inclusion" axis of the PCI.
Since 2009, IDH has been operating in Brazil, developing programs in the soy, cotton, coffee, and timber supply chains. Starting in 2015, it initiated a program focused on a territorial approach. The IDH landscape program is an integrated approach to production, protection, and inclusion for sustainable natural management in its regions of operation. In Mato Grosso, the program focuses on supporting the state PCI Strategy, forming regional PCI Pacts, and co-financing projects with the private sector in relevant value chains.
In 2012, the German government, through the Federal Ministry for Economic Cooperation and Development (BMZ), established the Global REDD Early Movers (REM) Program. This program supports countries and states that have implemented pioneering initiatives in forest conservation and reduction of emissions from deforestation and degradation.
Launched at the Rio+20 Conference in June 2012, the REDD Early Movers (REM) Program is an innovative initiative that rewards pioneers in forest conservation and climate change mitigation. It is intended for countries or subnational jurisdictions that have taken early initiatives to protect forests and/or reduce emissions from deforestation and degradation.
The Program provides results-based payments for verified emissions reductions from deforestation, thus becoming a REDD initiative in accordance with decisions taken under the United Nations Framework Convention on Climate Change (UNFCCC).
The actions of the REM Program directly contribute to the goals of the PCI strategy, including financing for the structuring and strengthening of the PCI Institute. The start of phase 2 of the REM program is planned for 2024, when an additional EUR 30 million will be allocated to continue the program until 2029.
The Partnership for Action on Green Economy (PAGE) supports countries interested in advancing towards more inclusive economies that seek to use resources efficiently, with low carbon emissions. In 2012, the final document of the United Nations Conference on Sustainable Development Rio+20 - "The Future We Want" - recognized the Green Economy as a channel for promoting sustainable development and eradicating poverty. At that time, a call was made to the United Nations to support countries interested in transitioning to greener and more inclusive economies. In response to this call, five UN agencies - UNIDO, UNEP, ILO, UNDP, and UNITAR - created PAGE with the aim of meeting the growing demands of countries seeking to develop and implement Green Economy strategies in their territories. The Green Economy is one that results in improved human well-being and social equality, while significantly reducing environmental risks and ecological imbalances. In December 2015, at COP 21 in Paris, after the launch of the PCI Strategy - Produce, Preserve, Include, the State of Mato Grosso, in 2016, through Decree No. 739 of November 10, 2016, entered into a partnership with PAGE, and the program was initiated with the objective of contributing to the equitable and sustainable transformation of economic structures to achieve environmental sustainability, create decent jobs, reduce poverty, and improve human well-being. Mato Grosso was the first subnational state in the world to receive support from PAGE.
In 2019, the state of Mato Grosso received a loan of US$ 250 million to support the state in restoring fiscal sustainability and increasing institutional capacity for sustainable agriculture, forest conservation, and climate change mitigation. The program supports fiscal sustainability policies and management of the economic growth engine based on "nature-based solutions" for environmental protection and climate change mitigation in the state.
Continuing the support initiated by GIZ in 2017, a new commitment for technical advisory was agreed upon during bilateral negotiations in November 2019 in Bonn, Germany, to assist in the implementation of the REDD+ Early Movers Program, focusing on strengthening the inclusion goals of the PCI. The project lasted for two years, from 2021 to 2023.
The main results achieved were the strengthening of the "Include" axis of the PCI Strategy through actions aimed at structuring Component 2 of the MT Productive Program (environmental and land regularization), direct support to the PCI Institute in the three Investment, Monitoring, and regionalization committees, as well as other actions carried out in conjunction with SEMA and local civil society partners in Mato Grosso.
The Decarbonization Pathways Project assists state and regional governments in developing a process or pathway for emissions reduction. The pathway offers state and regional governments a choice so that they can make informed decisions on the best way to reduce emissions while supporting economic and social development. Mato Grosso is a member of the GCF and the Under2 Coalition, and through SEMA-MT, the project is underway in the state.
Coordinated by CIRAD (International Center for Agronomic Research for Development) in partnership with ONF-International and AVSF (Agronomists and Veterinarians Without Borders), and with financial support from AFD, the project aims to develop territorial engineering tools capable of enabling sustainable planning and management in the territories where it operates. Additionally, transition indicators will be constructed during the project, allowing the monitoring of spatial dynamics related to land use. In Cotriguaçu, the project will be conducted by ONF Brazil and aims to provide the municipality with a deforestation control tool and enable agroecological practices. There will also be the establishment of a group of pilot farms for training workshops to be conducted with the Instituto Centro de Vida (ICV), a partner of ONF Brazil.
The project aims to expand the territorial approach of the PCI strategy in the western region of Mato Grosso through incentives for sustainable soy production combined with long-term positive social and economic impacts. The project will work in the municipalities of Sapezal, Tangará da Serra, Campos de Júlio, Campo Novo do Parecis, Diamantino, and Alto Paraguai through technical assistance on soybean farms following the guidelines of Produzindo Certo. New CONSERV contracts will also be implemented on 4,000 hectares and forest restoration will be carried out in permanent protection areas on small properties covering 135 hectares. The project is led by the Amazon Environmental Research Institute (IPAM) in partnership with the PCI Institute, Produzindo Certo, and Proforest, and is funded by the Land Innovation Fund (LIF), Consumer Goods Forum (CGF), and Soft Commodities Forum (SCF).
