Context
Brazil is the second-largest grain exporter in the world, playing a key role in global food security. Brazil’s National Plan for Fertilizers (PNF) aims to reduce Brazil’s fertiliser imports from 87% to 50% by 2050. According to the National Council for Fertilizers and Plant Nutrition (Confert), a body chaired by MDIC, the emerging fertiliser chains, which includes CNOMF, have a small share in the country’s consumption but great potential for growth, projecting a 500% increase by 2050 via investments. Aligned with the PNF, the project, ACTION, directly targets two sectors:
1) chemicals: CNOMF production and its value chain, supporting Brazil’s target of 50% in-country production;
2) agriculture: introduces climate-adapted products and practices, reducing carbon footprints and boosting productivity while lowering import dependence.
Goals and approach to transformational change
The project aimed to revolutionise agriculture by introducing sustainable farming practices through the production of Carbon-Negative Organo-Mineral Fertilisers (CNMF). The novel fertiliser incorporated point source carbon dioxide captured into organic matter balanced with mineral fertiliser.
The project would have offered a viable solution to decarbonise the fertiliser industry and develop a local value chain. It would have promoted sustainable waste management and would establish financial mechanisms to scale up both industries.
Components and support mechanisms
The Financial Cooperation (FC) component would have established a grant and a loan revolving fund to provide loans to farmer cooperatives for adopting the novel technology on reduced interest rates.
The Technical Cooperation (TC) component would have aimed to improve capacities throughout the local value chain to the main actors (financial institutions, farmers, and policy makers). Cooperatives will receive professional training in sustainable farming, addressing gender equality and social inclusion (GESI) considerations. In addition, through policy advice, regulations will be improvedto enable a transformation of the sector.
Long-term impact
The project would have directly mitigated 1.9 MtCO2e during the lifetime of its intervention with a cost efficiency of 13 EUR/tCO2e. It will reduce another 14.7 MtCO2e indirectly ten years after project end.
