mobilizing capital to scale responsible expansion of crop livestock in brazil

BOSTON CONSULTING GROUP 13 The Brazilian government is notably increasing its ambition for the agenda through the ABC+ Plan and the recent National Plan for the Recovery and Conversion of Degraded Pastures The ABC/ABC + Plan Established in 2010, the National Program for Low Carbon Emission in Agriculture (ABC Plan) is an initiative by the Brazilian government to promote sustainable practices within the agriculture and livestock sectors. This program program aims not only to reduce greenhouse gas (GHG) emissions but also to enhance the adaptability of these sectors to climate change. A significant allocation of the program’s funds is dedicated to the recovery of degraded pasturelands. To incentivize producers, the ABC+ program has adapted credit facilities: But in an insufficient amount for the size of the agenda:Below-market interest rates 7% (vs CDI at 13%)Government programs timeline Extended repayment terms up to 12 years with 5-year grace period by 2030 if the level of financing remains the same7 +USD 2 Billion+2010-2020 ABC Plan2021-2030 ABC+ Plan2024-2034+ National Plan for Recovery of Pastures 2020 2021 2022 20230.3 0.3 0.3 0.2Annual financing for the specific line of degraded pastures via ABC+ USD billion1, from 2019 to 20232 1. Banco Central do Brasil’s conversion rates from R$ to $ were: 0.19 in 2020, 0.18 in 2021, and are projected to be 0.19 in 2022 and 0.20 in 2023 2. Until November/2023.Financing credit lines for sustainable practices Including one specifically for the recovery of degraded pastures Source: Ministry of Agriculture and Livestock of Brazil BOSTON CONSULTING GROUP 13