Governance of environmental policy and Brazilian agribusiness

Abstract

This article analyzes the possible impacts that failure to meet the targets set out in international agreements on climate policy may have on Brazilian agribusiness. Between 2009 and 2019, agriculture grew 46.85% in the Cerrado Biome and 11% in the Amazon Biome, regions of the country's new agricultural frontier. However, this expansion is contested due to the increase of about 60% of deforestation in the Amazon, which is associated with the Change and Land Use sector. In addition, national emissions of greenhouse gases (GHG) were 5% above the target stipulated by the National Policy on Climate Change (NPCC). The escalation of deforestation generated national and international protests, with threats of disinvestment and non-signature of treaties, such as the Mercosur-European Union Agreement. The analysis of the NPCC resulted in the diagnosis that governance is fragmented and needs, for example, the reestablishment of technical and scientific representation within its councils. Cross-cutting policy initiatives between agriculture and the Change and Land Use sector can contribute to the reversal of deforestation levels in these Biomes, resulting in reduced emissions. In addition, Brazil needs to advance in the review and finalization of the Rural Environmental Registry (CAR) and implement a new cycle of the Sectoral Plan for Mitigation and Adaptation to Climate Change (Plan ABC). However, if the current environmental agenda is maintained, agriculture will continue to be held responsible for illegal deforestation, which can generate losses such as trade barriers, disinvestment and reduced income for rural producers.