EN 
PT_BR 
An innovative project approved by the Brazilian Development Bank (BNDES) aims to simultaneously generate income for farmers and recover 2,750 hectares of degraded areas. The initiative, from the Belterra Group, involves the implementation of agroforestry systems (SAFs) based on cocoa, in partnership with small and medium-sized rural producers in Bahia, Pará, Rondônia, and Mato Grosso. The BNDES financing, amounting to R$100 million, will be made possible with resources from the Climate Fund, linked to the Ministry of Environment and Climate Change (MMA).
The contract was signed on Friday morning, the 10th, during the seminar “BNDES Forests of Brazil Across the Planet,” at the Bank's headquarters in Rio de Janeiro. The event brings together public and private agents to discuss the role of restoration and the bioeconomy in the country's development — and serves as a platform for the launch of BNDES Forests, a platform that will organize and give visibility to the Bank's initiatives in the sector.
Agroforestry systems (AFS) aim to blend different agricultural crops and forest species in the same area, establishing a harmonious relationship. To be effective, this system must be designed considering soil, climate, market, species composition, land arrangement, costs, and other factors. A successful AFS ensures the sustainable use of land, increased productivity, and greater resilience of agricultural landscapes. Its implementation values nature, preserves the ecosystem, reduces input costs, and generates a high-quality product.
In addition to the R$ 100 million from the Climate Fund, the project has received R$ 15 million in funding from the Belterra Group and a further R$ 20 million raised from the Amazon Biodiversity Fund (ABF), an impact fund created in 2019 for large investors and managed by Impact Earth in collaboration with the US Agency for International Development (USAID) and the International Center for Tropical Agriculture (CIAT).
“In this operation with the Belterra Group, BNDES combines credit, innovation, and inclusion to transform degraded areas into forest and food production hubs. It is a model that generates income for small producers and combats climate change, showing that ecological restoration is also an economic opportunity for Brazil,” stated the president of BNDES, Aloizio Mercadante.
With operational centers in different states, the Belterra Group expects to plant 2.9 million seedlings in the new project. The main source of income for the project, cocoa, is a long-cycle crop, with production starting after three years, and has very high demand in the international market. In addition to cocoa, revenue is also expected from the cultivation of cassava and bananas, species that have a shorter cycle.
Farmers will have access to financing and technical assistance for the implementation of the agroforestry system. Furthermore, they will have guaranteed access to markets for their produce, giving them greater predictability regarding income generation and less exposure to climate risks.
“Our business model seeks to overcome the main challenges for the implementation of this type of project. In addition to offering new productive arrangements as an alternative for small farmers, efforts are made to connect production to the demand of large companies in the food sector. This approach enables the repair of environmental damage and the restoration of degraded lands, while bringing economic sustainability to the farmer,” explained Valmir Ortega, CEO of Belterra Agroflorestas.
Carbon Credits – Another expected outcome is the removal of annual emissions of 232,500 tons of carbon dioxide equivalent (tCO2e/year), which allows the project supported by BNDES to generate carbon credits.
Climate Fund – Created in 2009, the Climate Fund is linked to the Ministry of the Environment (MMA) and is managed by the Brazilian Development Bank (BNDES), which acts as manager in the application of reimbursable resources. It is one of the instruments of the National Policy on Climate Change and is constituted as an accounting fund with the purpose of supporting projects or studies and financing ventures, acquisitions of machinery and equipment, and technological innovations aimed at mitigating climate change.
The Belterra Group's project was accepted by the Climate Fund under the Native Forests and Water Resources category. This category provides support for the conservation, restoration, and responsible management of forests, and the promotion of climate mitigation, environmental sustainability, water availability, protection and sustainable use of biodiversity, and resilience to climate change.
After four years of declining performance, the Climate Fund was reinstated and restructured in 2023. The range of eligible items was expanded, and financial costs such as interest rates and amortization periods were altered. Since then, several records have been set, and a series of programs have been boosted. Since 2023, 9 operations for forests have been approved or contracted, totaling R$ 963 million.
