With the right support and investments, the PCI strategy can produce 6Gt CO of emission reductions and removals by 2030
The PCI Institute, through its Investment Committee, aims to facilitate the attraction of funds to leverage the Strategy’s goals in Mato Grosso.
Estimates made by partners in mid-2016 indicate a need for resources between 30 to 50 billion reais including operational costs, investments and technical assistance for the full implementation of the PCI strategy by 2030.
Since the Strategy was created, the State of Mato Grosso has managed to establish a series of partnerships and projects that support it. PCI itself has developed a series of actions aimed at connecting investors, buyers, companies and partners to the territory.
The PCI Institute was also conceived as a managerial and financial instrument capable of raising funds for programs and projects of the Strategy and will further leverage Mato Grosso's capacity to attract investments aimed at the sustainable use of land.
Several organizations have participated and contributed to the PCI Monitoring Committee, including WRI, EDF, TFA, IPAM, TNC, ONF, Pecsa, in addition to government bodies such as, SEMA, SEDEC, SEAF and the Office of the Chief of Staff of the Government of Mato Grosso..
Coordinationnação: Marcela Paranhos | Sustainable Trade Initiative – IDH
The Unlocking Forest Finance Project, completed in 2016, aimed to help design a more sustainable scenario for the state of Mato Grossο, and to study the economic feasibility for this transition. From the beginning, the project had a partnership with the government of Mato Grosso, through the State Secretariat for the Environment. The data initially generated by the UFF were used as a subsidy to define the goals of the Produce, Conserve and Include (PCI) Strategy launched by the state of MT during COP 21, which took place in Paris in 2015.
The project, led by the Global Canopy Program has the IPAM as an Implementing partner in Mato Grosso, and 13 partner institutions and takes place in three different geogrpahic localities: Mato Grosso and Acre, in Brazil, and San Martin, in Peru.
Between 2013 and 2016, researchers conducted 116 interviews with 42 different organizations to choose the activities that would be analyzed and to design a transition scenario for Mato Grosso, involving the pillars of production, conservation and sustainable livelihoods. The transition scenarios were built not from a market demand projection, but from the view of the actors from each sector involved about the future of each activity, its bottlenecks and how they could improve using sustainability (economic, social and environmental) criteria.
According to the study’s estimates, an additional investment of approximately 43.4 billion reais would be necessary for the financing and defrayal of costs in the sectors of agriculture, livestock and forestry, through credit lines that can largely come from the ABC and PRONAF Plans (National Program for Strengthening of Family Farming). If the costs of protected areas are also added up, the estimated total for the transition in Mato Grosso for the next 15 years will be of about 46 billion reais.
Trama Consultancy was hired with the support of the Sustainable Trade Initiative - IDH, to present the PCI Strategy’s 2017-2030 Implementation Plan of the state of Mato Grosso.
The objective was to develop an action plan that contributes to the achievement of the goals defined for each of the pillars. For this, the following work process was proposed:
Map the current state’s conditions 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 the main actors associated with the Strategy’s pillars.
Based on the results of the mapping, discuss the current situation of the PCI with society and collectively build action plans that enable and expedite the Strategy’s implementation considering its objectives and goals.
The dynamics of the work carried out resulted in a set of proposals that were grouped into 5 key cross-cutting themes:
i) financing mechanisms
ii) environmental regularization
iii) land use regularization
v) production and diffusion of technology and good practices.
Within the 5 themes there are 25 systemic actions divided into 105 stages that allow us to advance the key themes, ensuring that they operate as enabling factors for the PCI’s goals.
The work also identified as a priority the creation of a financial and managerial mechanism for the Strategy, which became the PCI Institute.
At the end of 2017, within the scope of the PCI Strategy State Committee, the Value, Engagement and Communication Working Group was created, aiming at attracting private investments and partnerships. This working group was later incorporated into the current PCI Investment Committee.
In 2017, PCI member, Agroicone, with the support of the Global Canopy Program - GCP, started to identify and collect information on investment opportunities in sustainable value chains in Mato Grosso. Agroicone aimed to contribute to the Produce, Conserve and Include - PCI strategy of the state of Mato Grosso by conducting economic-financial analyses of cases (business models) that were potentially scalable and replicable, with a focus on agribusiness chains. Throughout 2015, Agroicone contributed to the development of the PCI strategy with economic analyses and projections of Mato Grosso's agriculture and livestock. The PCI Strategy was presented by the state government at the 2015 COP21 in Paris. Based on the mapping and dialogue with Trama's consultants, Agroicone selected the cases that had the greatest potential for success, including those already identified by the PCI committee.
The Tropical Forest Alliance is a multi-sectoral partnership that involves governments, companies, civil society, indigenous organizations and international organizations to advance a sustainable commodity-production agenda.
The PCI was presented at a TFA event in September 2016, during New York Climate Week.
In November 2017, the Alliance invited the then deputy governor of Mato Grosso to a preparatory workshop in London, with representatives from global civil society organizations and leading companies in the supply chain and financial services sectors. The event took place in conjunction with the Innovation Forum, enabling the state to introduce the PCI to a target group of global investors and donors. The feedback from this meeting was used to improve the quality of individual projects for the Implementation Dialogue in March.
The Implementation Dialogue took place in São Paulo in March 2018. The success stories selected by Agroicone for the PCI were presented to investment groups such as Althelia Ecosphere & Green Fund, private banks such as ABN AMRO and Santander, multilateral banks such as the World Bank and the Inter-American Development Bank, and buyers such as Cargill, COFCO, Bunge, Walmart and Carrefour, among others.
In March 2018, during the TFA’s Second General Assembly in Brasília, the State of Mato Grosso became officially part of the Alliance.
The Alliance is also part of the PCI Investment Committee and currently coordinates its Corporate Action Group.
In 2020, the PCI was introduced to the TFA Jurisdiction Exchange Network:
As part of TFA's effort to support jurisdictional initiatives, the Jurisdictional Approaches Resources Hub was launched as a website dedicated to listing tools of interest to companies and partners who want to support jurisdictional initiatives, including a Landscape Scale Action for Forests, People, and Sustainable Production: A Practical Guide for Companies.
Learn more: https://jaresourcehub.org/
In September 2018, during the Global Climate Action Summit in California, the PCI announced the creation of its Corporate Action Group with the support of EDF.
The group’s objective is to provide a place to facilitate corporate involvement in projects in Mato Grosso, provide opportunities to support the PCI's goals and create a communication channel between companies and the PCI Institute.
The PSPL is a map of risks and opportunities for companies operating in Mato Grosso. Through an analysis of risk classes of deforestation at the municipal level, the map encourages companies to operate in the territory by creating support and incentive mechanisms aimed at continuous improvement.
Produced with the support of EDF and TFA, the PCI project pitchbook aims to provide a "menu" of projects taking place in Mato Grosso to engage corporate actors.
The goal is to make it simple for companies to understand how they can connect the sustainability efforts in their supply chains to the jurisdictional strategy, thus contributing to its success but also to fulfilling their own sustainability commitments.
The projects in this book were chosen based on a set of criteria developed by the PCI Committee. Each project has committed itself to supporting the goals of at least two of the pillars of the PCI (produce, conserve, include) and has demonstrated a commitment to zero illegal deforestation. The projects are already underway and are potentially replicable across the state.
The pitchbook was launched at the Tropical Forest Alliance meeting in Bogotá, Colombia in 2019.
Created by Climate Focus, WWF and Meridian Institute, this initiative intends for companies to preferably direct their purchases to jurisdictions that implement programs that reduce deforestation and its associated emissions. These jurisdictions will benefit from trade and additional revenues, which complement the potential climate funding associated with reducing emissions related to forests.
The CJA criteria are inspired by the FCPF, and the PCI has been directing efforts so that Mato Grosso can meet these criteria..
Learn more: https://commoditiesjurisdictions.wordpress.com/approach/
Developed by the IDH, Source-Up, formerly known as Verified Sourcing Areas (VSA), is an innovative model based on an online market platform that connects the demand for agricultural products sustainably produced with local advances in sustainability. The model can (i) help companies contribute to the SDGs at scale through agricultural products, (ii) understand how to address deforestation and social issues regionally through public-private partnerships, and (iii) Learn how companies and regional initiatives work together to improve the sustainability of the supply chain.
The PCI, represented by its Executive Director, participates in the Global Steering Committee that helped develop the Source-Up tool.
Learn more: https://sourceup.org/
The objective of this consultancy, financed by the REM-MT Program and co-financed by TFA, is to carry out an economic analysis of the PCI Strategy in the state, presenting all public and private investments already made since the PCI’s launch in 2015, an estimate of necessary costs for the implementation of the goals until 2030, and the elaboration of new financial arrangements considering the flow of available capital.
This product intends to provide technical and executive advice for the development of economic and financial analyses to identify new actions and prioritize investment opportunities in the State of Mato Grosso resulting from the PCI Strategy. This will also help support the state of Mato Grosso’s future fund-raising strategy in partnership with the PCI Institute.
ISEAL is developing a jurisdictional guide that aims to support initiatives and companies in order to guarantee the accuracy and veracity of their reported commitments and actions. Through a project funded by the WalMart Foundation, the PCI Strategy is one of the pilot jurisdictional initiatives that in partnership with the ICV will develop, test and build an alignment for a structure that allows the measurement, verification and reporting of sustainability progress on a jurisdictional scale, both by companies and the initiative itself.
In parallel, the WalMart Foundation also finances a project with the CDP so that through the collection and analysis of data, the Jurisdictional Approach gains scale with both companies and regions.
Following the publication of the Pitchbook in 2019, the PCI intends to develop an online platform in 2021, with the objective of gathering a greater number of initiatives in the state of Mato Grosso aligned with the PCI. The platform will be online and open for public access, with the possibility of being self-powered by users registered on the platform. This registration is subject to approval by the PCI team and enables the scalability and continuous updating of initiatives, in addition to connecting with companies, buyers and investors.
At the initiative of the Environmental Defense Fund and the Life Center Institute (ICV), and with the support of the State Secretariat for the Environment, in December 2019 a Workshop was held on new opportunities for financing low-carbon forest and agricultural conservation in Mato Grosso based on REDD + and the carbon market.
In February 2020, a new workshop was carried out with the participation of PCI companies and actors and ensued discussions on opportunities in the carbon market.
In 2021, as part of the PCI Institute’s Investment Action Plan, a decision was made to support the State of Mato Grosso in building a strategy that would allow the Institute to support the State in defining its policy as well as reaching different opportunities in the carbon market.
Participating in the Group does not imply any type of commitment, but companies are required to participate in online meetings that will be scheduled in advance.
When participatin g in the Corporate Action Group, companies will be provided with :
As of 2021, the Corporate Action Group will be coordinated by TFA in partnership with the PCI Institute..
In September 2018, the PCI launched the Corporate Action Group (CoAG) to offer an opportunity for companies to connect to the PCI and learn about local projects and potential corporate activities that could support the strategy of the state of Mato Grosso. In addition, the PCI Pitchbook was launched at the Tropical Forest Alliance meeting in Bogotá, Colombia, in May 2019. In 2020, the CoAG was integrated into the PCI Investment Committee, which is responsible for organizing and coordinating public and private sector involvement in the new governance of the PCI Institute, including potential investments, such as international funds, carbon markets, REDD + Early Movers and World Bank investments.
By participating in the CoAG, companies will benefit from learning and exploring opportunities for engagement and sustainable supply of commodities in Mato Grosso. It also provides connections for companies with responsible producers and/or promising regional and local projects to facilitate local partnerships that can expand good practices and support companies in meeting sustainability goals.
Since it was launched at the COP26 in 2015, the PCI Strategy of the State of Mato Grosso has mobilized partners and investments that directly support the implementation of its goals.
Some of the most relevant initiatives operating in the State and which contribute positively to the PCI are:
IDH landscape program
S ince 2009, the IDH has been operating in Brazil developing programs in the soy, cotton, coffee and wood production chains. As of 2015, the program started to focus on the 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’s PCI Strategy, forming PCI Regional Compacts and co-financing projects with the private sector in relevant value chains.
Programa Global REDD Early Movers (REM)
Launched at the Rio+20 Conference, in 2012, the REDD + for Early Movers is a compensation initiative that rewards nations that present positive results in forest conservation. At the end of 2017, the State of Mato Grosso received funding from the governments of Germany and the United Kingdom, which were earmarked for institutional strengthening actions and direct support programs for beneficiaries such as rural producers, indigenous peoples and family farmers in addition to traditional communities. The REM Program, carried out by SEMA-MT is integrated with the State System of REDD+ (Reducing Emissions from Deforestation and Forest Degradation), with the Produce, Conserve, Include (PCI) Institute, and with the Deforestation and Forest Fires Prevention and Control Plan (PPCDIF), directly contributing to the achievement of the goals set for environmental conservation and deforestation reduction in the state.
Partnership for Green Economy (PAGE)
The Partnership for Action for a Green Economy - PAGE - supports countries interested in advancing towards more inclusive economies, which seek to use resources efficiently and 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 the promotion of sustainable development and the eradication of poverty. At the time, there was a call for the United Nations to support countries interested in the transition to greener and more inclusive economies. In response to this call, five UN agencies: UNIDO, UNEP, ILO, UNDP and UNITAR - created PAGE - Partnership for Action for a Green Economy, with the objective of meeting the growing demands of countries that seek to develop and implement Green Economy strategies in their territory. The Green Economy is one that results in the improvement of human well-being and social equality, while significantly reducing environmental risks and ecological imbalances. After the launch of the PCI Strategy - Produce, Conserve and Include, in December/2015, at COP 21 in Paris, the State of Mato Grosso in 2016, through Decree No. 739 of 11/10/2016, signed a partnership with PAGE and the program was started with the objective of contributing to the equitable and sustainable transformation of economic structures aiming 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.
World Bank Development Policy Loan (DPL)
In 2019, the state of Mato Grosso received a USD 250 million loan to regain fiscal sustainability and increase institutional capacity for sustainable agriculture, forest conservation and mitigation of climate change. The program supports fiscal sustainability policies and management of economic growth based on “nature-based solutions” for environmental protection and mitigation of climate change in the state.
GIZ technical cooperation for the “REDD+ for Early Movers” program
Ensuing the support initiated by GIZ in 2017, a new technical consultancy commitment was agreed during the bilateral negotiations in November 2019 in Bonn (Germany) to assist in the implementation of the REDD+ for Early Movers Program with a focus on strengthening the PCI’s inclusion goals. The project will last two years and is expected to kick off in 2021. The expected results are
(i) The REM Subprograms meet the specific needs of Indigenous Peoples and Traditional Peoples and Communities in MT,
(ii) The REM Subprograms strengthen PCI strategies in the territories,
(iii) Strengthened capacity of other states in the Amazon region for REDD+ management.
Valuing the Forests of Mato Grosso
This project aimed to produce key information for the monitoring of REDD+ policy (mapping of vegetation, vulnerabilities and the transparency platform) and for the strengthening of decision and participation spaces, such as the REDD Working Group, the Forum on Climate Change and the REM Discussions. Valuing the forests of Mato Grosso was implemented by ICV through Technical Cooperation with SEMA-MT. It is funded by the GCF Task Force (Governors' Climate and Forests Task Force) and implemented via the United Nations Development Program (UNDP).
Climate Pathway Project
The Decarbonization Pathway Project assists state and regional governments to develop a transformation process or path to reduce emissions. The pathway provides state and regional governments with a choice, so that they can make informed decisions about how best to reduce emissions while supporting economic and social development. Mato Grosso is a member of the GCF and Under2 Coalition, and the project is underway in the State through SEMA-MT.
Coordinated by CIRAD (Agricultural Research Center for International Development) in partnership with ONF-International and AVSF (Agronomists and veterinarians without borders), and with the financial support of AFD, the project aims to develop tools for territorial engineering capable of allowing planning and sustainable management in the territories in which it operates. In addition, transition indicators will be built during the project and will allow for the monitoring of the spatial dynamics related to land use. In Cotriguaçu, the project will be conducted by ONF Brazil and will aim to provide the municipality with a tool to control deforestation in addition to enabling agro-ecological practices. A group of pilot farms will also be set up to carry out training workshops to be held with the Life Center Institute (ICV), a partner of ONF Brazil.
Sustainable Rural Project.
The project aims to mitigate greenhouse gas (GHG) emissions and increase the income of small and medium producers in the Cerrado (Brazilian Savannah) biome, promoting the adoption of low carbon production technologies. The project has resources from the United Kingdom through the IDB and the Brazilian Ministry of Agriculture (MAPA) and is executed by the IABS and iLPF network. The program seeks to implement activities that improve producers' access to technical assistance, training and credit, as well as actions to strengthen local productive organizations, in order to promote the commercialization of the agricultural production. In addition, it will improve the capacities of local technical assistance service providers (institutions and individual professionals) to work with low-carbon technologies. Such objectives will be achieved by supporting the adoption of crop-livestock-forest integration systems (ILPF) and the recovery of degraded pastures.
Forest Investment Program (FIP)
The “Integrated Landscape Management in the Cerrado (Brazilian Savannah) Biome” Project, also called the Rural Landscapes Project, aims to strengthen the adoption of environmental conservation and recovery practices, as well as sustainable low-carbon agricultural practices in selected basins of the Cerrado biome. The project has funds of about USD 21 million from the Climate Investment Fund (CIF), to be made available through the Forestry Investment Program (FIP) in 53 ottobasins in the Cerrado, which cover an area of 12.5 million hectares distributed in nine states (BA, GO, MA, MG, MS, MT, PI, SP, TO). The Rural Landscapes is coordinated by the Brazilian Forest Service and the Secretariat for Innovation, Rural Development and Irrigation of the Ministry of Agriculture (Mapa), having as partners the German technical cooperation agency GIZ, the National Rural Training Service (Senar), the Ministry of Science, Technology, Innovation and Communications (MCTI), through the National Institute for Space Research (Inpe), and Embrapa. The Project is supported by the World Bank.
Terra a Limpo Program
The program was born as a result of debates on land regularization within the scope of the Program for Sustainable Municipalities of the state of Mato Grosso, and aims to improve the management, the provision of services to society and boost rural land regularization in the state. The program is executed by INTERMAT and INCRA and financed by the Amazon Fund/BNDES with a non-refundable volume, 72.9 million reais. The Terra a Limpo Program covers 88 municipalities in Mato Grosso that are part of the Amazon Biome. The actions in the municipalities are carried out in the plots and settlements approved when contracted, through work plans designed and executed by INCRA and INTERMAT, also working in partnership with various public bodies and sectoral representative organizations, as a way of strengthening land regularization in the State
Resource Efficiency Program for the Beef Supply Chain
The program, designed by the Carbon Trust, a member of the PCI Strategy, seeks to offer financing and technical assistance tools to enable the implementation of solutions that increase the efficiency and productivity of the beef chain through a set of measures: (i) increase awareness on the business benefits of resource-efficient solutions; (ii) a complete technical assistance package, including financial risk mitigation measures, such as on-the-spot audits, technology accreditation and support during implementation; and (iii) an attractive financing package to allow investment in best practices.
The Program will still be initiated in Mato Grosso.