How the carbon market can benefit agribusiness.
13.10.2022 - 14hs

How the carbon market can benefit agribusiness.

There are many benefits that agribusiness can gain from the carbon credit market by applying good management practices in livestock farming, using good agricultural practices that protect and regenerate the soil, and naturally through reforestation and conservation of forest areas. These practices can generate carbon credits that can be traded.

Brazil has become an established player in the global agribusiness. We have gone from being a food importer to becoming one of the largest producers and exporters in the world.Today, we provide the food base for about 10% of the world's population. Between 1976 and 2020, we have improved our productivity by about 400%, while increasing agricultural area by only 50%. The Brazilian agribusiness has evolved not only in quantity and productivity, but also worldwide recognition for its expertise in conservationist management. This is where our great potential and advantage lies in the market that lies before us.

In addition, we are one of the five largest countries in the world in terms of land area.We have the largest freshwater and tropical forest reserves in the world, as well as the most diverse biomes and an unparalleled biodiversity. All of this contributes to the production of the most diverse types of crops, in various regions and at different times of the year. It is within this atmosphere that our agribusiness is embedded, opportunities that stretch as far as Caburaí all the way down to Chuí..

However, how does the carbon market create additional benefits and opportunities for agribusiness?

It goes without saying. Agriculture is one of the few chains capable of capturing carbon from the atmosphere and sequestering it in the soil. Good agricultural practices, where, for example, organic matter is added in growing areas, the regeneration process of the soil is accelerated, thus benefiting productivity and also increasing carbon sequestration and fixation, resulting in carbon credits and improved profitability for the producer.

It is precisely within this landscape of process management and good management practices that agribusiness requires further support. By improving farming techniques that favor more integrated and sustainable production systems, such as no-till farming, crop rotation, rational use of pesticides, improved biological pest control, conservation and expansion of forests around productive areas, and preservation of the environment.Furthermore, it is very important to point out the activities of crop-livestock-forest integration (ILPF) which, according to research by Embrapa Agrossilvipastoril, have proven efficient in containing and capturing animal methane emissions.

These initiatives, paired with a favorable environment, sufficient funding and regulation, the development of technology, and scientific investments, will increasingly make a significant difference for Brazilian agribusiness.

It is on this approach that the Brazilian agribusiness needs to continue investing. Improving on practices to increase productivity, further raising the prominence and relevance of Brazil in the global agro- and carbon market, mitigating even more GHG (Greenhouse Gases) emissions and thus producing more income on the field, for Brazil and its people.

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