The Cerrado savannah, crucial for biodiversity and carbon storage, is threatened by deforestation for soya cultivation. The Responsible Commodities Facility (RCF) aims to halt this by offering farmers lower-interest loans in exchange for land conservation commitments, with a goal of reaching $150 million in funding by 2025-26. This initiative emphasizes the need for private sector involvement in achieving sustainable agricultural practices in line with climate objectives.
The Cerrado savannah in central Brazil, covering over 2 million square kilometers, is the world’s largest grassland and hosts 5% of all species. It plays a crucial role in carbon storage, holding about 13.7 billion tonnes of carbon. However, extensive deforestation for soya bean cultivation threatens this ecosystem.
To combat this issue, the Responsible Commodities Facility (RCF) was launched in 2022 with support from the United Nations Environment Programme (UNEP). RCF collaborates with soya farmers to stop deforestation while ensuring farm profitability and ecosystem preservation by providing loans at lower interest rates than commercial banks.
Farmers, required to protect over 35% of their land from deforestation, have collectively received $69 million in funding. The RCF’s average impact has been to protect 50% of forested areas while retaining 18 million tonnes of CO2 through 15,000 hectares of conserved vegetation.
The fund aims to secure $150 million by the 2025-26 growing season to enhance its impact on the Cerrado. More resources could allow loans for environmentally friendly farming practices, such as regenerating fallow fields, facilitating expansion without additional deforestation.
The RCF emerged from the Cerrado Manifesto, supported by about 160 companies pledging to stop deforestation. However, significant funding is essential for the RCF to mainstream deforestation-free practices in agriculture. Private-sector financing is vital in addressing climate change, biodiversity loss, and pollution crises.
Currently, finance for nature-based solutions stands at $200 billion annually—one-third of what’s necessary for climate and biodiversity targets by 2030. More involvement from commercial sectors could accelerate progress.
UNEP aims to uphold the Paris Agreement commitments to limit global warming to below 2°C. Key sectors outlined for emissions reduction include energy, industry, agriculture, transport, and cities, underlining the urgent need for solutions that align economic activities with environmental sustainability.
The RCF is critical in addressing deforestation in Brazil’s Cerrado by providing farmers with affordable financing while ensuring ecosystem preservation. Its goal of reaching $150 million would significantly enhance its capacity to promote sustainable farming practices. Involving more private companies in financing can drive essential changes towards achieving climate goals and safeguarding biodiversity. The integration of financial incentives aligned with environmental protection could redefine the agricultural landscape in Brazil.
Original Source: www.unep.org
