Agricultural credit to mitigate climatic changes: analysis of the ABC Program

Abstract

The agricultural and livestock sector has caused approximately 24% of total greenhouse gas emissions (GEE) in Brazil in 2017. In 2009, the Brazilian administration established sectorial plans for the mitigation of climatic changes. The Agricultural Plan for Low Carbon (ABC) and the ABC Program are responsible for target projections to mitigate climatic changes and financial incentives for their implementation. Current paper investigates whether available credit for this public policy is being used in technological processes with great potential for the mitigation of GEEs. Secondary sources of data on the amount of credit of ABC program and GEE emissions have been researched. The historical series of emissions revealed that, within agricultural activities, enteric fermentation of animals and the use of agricultural soil are the main causes of GEEs, with almost 86% of emissions. Results also demonstrated that, within seven priority areas, one has specially received highest investment rates, or rather, the recovery of degraded pastureland, with approximately 30% of investments. Further, 15% of amounts initially projected by the ABN program have been available and only 9% have been effectively spent.