With the right support and investment, the PCI strategy can
produce 6 Gt/CO2 of emission reductions and removals by 2030
The PCI Institute, through its Investment Committee, aims to facilitate the attraction of funds to leverage the Strategy’s goals in Mato Grosso.
Estimates made by partners in mid-2016 indicate a need for resources between 30 to 50 billion reais including operational costs, investments and technical assistance for the full implementation of the PCI strategy by 2030.
Since the Strategy was created, the State of Mato Grosso has managed to establish a series of partnerships and projects that support it. PCI itself has developed a series of actions aimed at connecting investors, buyers, companies and partners to the territory.
The PCI Institute was also conceived as a managerial and financial instrument capable of raising funds for programs and projects of the Strategy and will further leverage Mato Grosso's capacity to attract investments aimed at the sustainable use of land.
Several organizations have participated and contributed to the PCI Monitoring Committee, including WRI, EDF, TFA, IPAM, TNC, ONF, Pecsa, in addition to government bodies such as, SEMA, SEDEC, SEAF and the Office of the Chief of Staff of the Government of Mato Grosso..
Coordinationnação: Marcela Paranhos | Sustainable Trade Initiative – IDH
In 2015, an estimate of investments needed to achieve the goals was prepared by those participating in the construction of the PCI Strategy and was presented by the government at the launch of the PCI Strategy at the COP in Paris.
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The Unlocking Forest Finance Project, completed in 2016, aimed to help design a more sustainable scenario for the state of Mato Grossο, and to study the economic feasibility for this transition. From the beginning, the project had a partnership with the government of Mato Grosso, through the State Secretariat for the Environment. The data initially generated by the UFF were used as a subsidy to define the goals of the Produce, Conserve and Include (PCI) Strategy launched by the state of MT during COP 21, which took place in Paris in 2015.
The project, led by the Global Canopy Program has the IPAM as an Implementing partner in Mato Grosso, and 13 partner institutions and takes place in three different geogrpahic localities: Mato Grosso and Acre, in Brazil, and San Martin, in Peru.
Between 2013 and 2016, researchers conducted 116 interviews with 42 different organizations to choose the activities that would be analyzed and to design a transition scenario for Mato Grosso, involving the pillars of production, conservation and sustainable livelihoods. The transition scenarios were built not from a market demand projection, but from the view of the actors from each sector involved about the future of each activity, its bottlenecks and how they could improve using sustainability (economic, social and environmental) criteria.
According to the study’s estimates, an additional investment of approximately 43.4 billion reais would be necessary for the financing and defrayal of costs in the sectors of agriculture, livestock and forestry, through credit lines that can largely come from the ABC and PRONAF Plans (National Program for Strengthening of Family Farming). If the costs of protected areas are also added up, the estimated total for the transition in Mato Grosso for the next 15 years will be of about 46 billion reais.
Trama Consultancy was hired with the support of the Sustainable Trade Initiative - IDH, to present the PCI Strategy’s 2017-2030 Implementation Plan of the state of Mato Grosso.
The objective was to develop an action plan that contributes to the achievement of the goals defined for each of the pillars. For this, the following work process was proposed:
Map the current state’s conditions for the implementation of the PCI Strategy, involving a survey of secondary data on ongoing initiatives at the state and national levels, as well as conducting interviews with the main actors associated with the Strategy’s pillars.
Based on the results of the mapping, discuss the current situation of the PCI with society and collectively build action plans that enable and expedite the Strategy’s implementation considering its objectives and goals.
The dynamics of the work carried out resulted in a set of proposals that were grouped into 5 key cross-cutting themes:
i) financing mechanisms
ii) environmental regularization
iii) land use regularization
v) production and diffusion of technology and good practices.
Within the 5 themes there are 25 systemic actions divided into 105 stages that allow us to advance the key themes, ensuring that they operate as enabling factors for the PCI’s goals.
The work also identified as a priority the creation of a financial and managerial mechanism for the Strategy, which became the PCI Institute.
At the end of 2017, within the scope of the PCI Strategy State Committee, the Value, Engagement and Communication Working Group was created, aiming at attracting private investments and partnerships. This working group was later incorporated into the current PCI Investment Committee.
In 2017, PCI member, Agroicone, with the support of the Global Canopy Program - GCP, started to identify and collect information on investment opportunities in sustainable value chains in Mato Grosso. Agroicone aimed to contribute to the Produce, Conserve and Include - PCI strategy of the state of Mato Grosso by conducting economic-financial analyses of cases (business models) that were potentially scalable and replicable, with a focus on agribusiness chains. Throughout 2015, Agroicone contributed to the development of the PCI strategy with economic analyses and projections of Mato Grosso's agriculture and livestock. The PCI Strategy was presented by the state government at the 2015 COP21 in Paris. Based on the mapping and dialogue with Trama's consultants, Agroicone selected the cases that had the greatest potential for success, including those already identified by the PCI committee.
The Tropical Forest Alliance is a multi-sectoral partnership that involves governments, companies, civil society, indigenous organizations and international organizations to advance a sustainable commodity-production agenda.
The PCI was presented at a TFA event in September 2016, during New York Climate Week.
In November 2017, the Alliance invited the then deputy governor of Mato Grosso to a preparatory workshop in London, with representatives from global civil society organizations and leading companies in the supply chain and financial services sectors. The event took place in conjunction with the Innovation Forum, enabling the state to introduce the PCI to a target group of global investors and donors. The feedback from this meeting was used to improve the quality of individual projects for the Implementation Dialogue in March.
The Implementation Dialogue took place in São Paulo in March 2018. The success stories selected by Agroicone for the PCI were presented to investment groups such as Althelia Ecosphere & Green Fund, private banks such as ABN AMRO and Santander, multilateral banks such as the World Bank and the Inter-American Development Bank, and buyers such as Cargill, COFCO, Bunge, Walmart and Carrefour, among others.
In March 2018, during the TFA’s Second General Assembly in Brasília, the State of Mato Grosso became officially part of the Alliance.
The Alliance is also part of the PCI Investment Committee and currently coordinates its Corporate Action Group.
In 2020, the PCI was introduced to the TFA Jurisdiction Exchange Network:
As part of TFA's effort to support jurisdictional initiatives, the Jurisdictional Approaches Resources Hub was launched as a website dedicated to listing tools of interest to companies and partners who want to support jurisdictional initiatives, including a Landscape Scale Action for Forests, People, and Sustainable Production: A Practical Guide for Companies.
Learn more: https://jaresourcehub.org/
In September 2018, during the Global Climate Action Summit in California, the PCI announced the creation of its Corporate Action Group with the support of EDF.
The group’s objective is to provide a place to facilitate corporate involvement in projects in Mato Grosso, provide opportunities to support the PCI's goals and create a communication channel between companies and the PCI Institute.
The PSPL is a map of risks and opportunities for companies operating in Mato Grosso. Through an analysis of risk classes of deforestation at the municipal level, the map encourages companies to operate in the territory by creating support and incentive mechanisms aimed at continuous improvement.
Produced with the support of EDF and TFA, the PCI project pitchbook aims to provide a "menu" of projects taking place in Mato Grosso to engage corporate actors.
The goal is to make it simple for companies to understand how they can connect the sustainability efforts in their supply chains to the jurisdictional strategy, thus contributing to its success but also to fulfilling their own sustainability commitments.
The projects in this book were chosen based on a set of criteria developed by the PCI Committee. Each project has committed itself to supporting the goals of at least two of the pillars of the PCI (produce, conserve, include) and has demonstrated a commitment to zero illegal deforestation. The projects are already underway and are potentially replicable across the state.
The pitchbook was launched at the Tropical Forest Alliance meeting in Bogotá, Colombia in 2019.
Created by Climate Focus, WWF and Meridian Institute, this initiative intends for companies to preferably direct their purchases to jurisdictions that implement programs that reduce deforestation and its associated emissions. These jurisdictions will benefit from trade and additional revenues, which complement the potential climate funding associated with reducing emissions related to forests.
The CJA criteria are inspired by the FCPF, and the PCI has been directing efforts so that Mato Grosso can meet these criteria..
Learn more: : https://commoditiesjurisdictions.wordpress.com/approach/
Developed by the IDH, Source-Up, formerly known as Verified Sourcing Areas (VSA), is an innovative model based on an online market platform that connects the demand for agricultural products sustainably produced with local advances in sustainability. The model can (i) help companies contribute to the SDGs at scale through agricultural products, (ii) understand how to address deforestation and social issues regionally through public-private partnerships, and (iii) Learn how companies and regional initiatives work together to improve the sustainability of the supply chain.
The PCI, represented by its Executive Director, participates in the Global Steering Committee that helped develop the Source-Up tool.
With the aim of connect local initiatives with funding sources, in 2022 the PCI Institute is carrying out a portfolio of initiatives with potential funding and/or technical support for replication and scale. The ultimate goal is to facilitate the connection of actors to accelerate field actions aimed at meeting the PCI targets by 2030.
At the end of 2021, an Engagement Guide was produced for companies interested in being part of the PCI. As a result of this work, the PCI Institute is carrying out analyzes of the companies participating in the PCI so that each company can be classified according to the engagement categories defined by the PCI Engagement Guide.
Following the publication of the Pitchbook in 2019, the PCI intends to develop an online platform in 2021, with the objective of gathering a greater number of initiatives in the state of Mato Grosso aligned with the PCI. The platform will be online and open for public access, with the possibility of being self-powered by users registered on the platform. This registration is subject to approval by the PCI team and enables the scalability and continuous updating of initiatives, in addition to connecting with companies, buyers and investors.
At the initiative of the Environmental Defense Fund and the Life Center Institute (ICV), and with the support of the State Secretariat for the Environment, in December 2019 a Workshop was held on new opportunities for financing low-carbon forest and agricultural conservation in Mato Grosso based on REDD + and the carbon market.
In February 2020, a new workshop was carried out with the participation of PCI companies and actors and ensued discussions on opportunities in the carbon market.
In 2021, as part of the PCI Institute’s Investment Action Plan, a decision was made to support the State of Mato Grosso in building a strategy that would allow the Institute to support the State in defining its policy as well as reaching different opportunities in the carbon market.