Public and private actions for shifting towards sustainable production of beef and palm oil
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Transcript of Public and private actions for shifting towards sustainable production of beef and palm oil
Public and private actions for shifting towards sustainable production of beef and palm oil
Pablo PachecoLand and Poverty Conference
Washington, 2016
HIGHLIGHTS Slowdown of deforestation in Brazil but with growing supply of soy and beef Persistent expansion of oil palm in Indonesia with pressures on forests and peatlands More progressive regulations and institutional arrangements are in place in Brazil Less synergies between public and private initiatives and actions in Indonesia Lessons can be learned from Brazil about what is feasible and desirable Still much to do in how to promote sustainable production that work for all Some social and environmental risks have still not been addressed in Brazil
THE CONTEXT
We have entered an era of commitments from public and private actors Governments are committing to reduce their GHG emissions and LEDS Companies are committing to support deforestation-free supply chains Landholders are increasingly prompted to adjust to these commitments Available technologies and tools to monitor impacts at wider scales Still no consensus on definitions, targets to be achieved and timeframes Enforcement of progressive regulations to halt deforestation is crucial But it is also the efforts of companies to accomplish their commitments
THE CHALLENGE Halting deforestation is not just about forests because of the collateral implications It provides an unique opportunity to trigger intensification and sustainable land uses But, it also leads to some associated social and environmental risks Sustainable options require of investment and production models that:
- Make economic sense to all stakeholders involved in the short and long term- Equitably share the costs and benefits from new policy and market conditions- Support empowerment of local actors that embrace sustainable land uses
Solutions to deforestation have also to guide new agrarian transitions The outcomes have to be acceptable to wider society outside forest areas
OPPORTUNITIES AND RISKS There are some unique opportunities
- Stopping deforestation leads to reduction of GHG emissions and mitigate climate change
- Reduces investments in low production systems and stimulates recovery of degraded pastures
But there are also some likely risks- Leakage to other vulnerable ecosystems, for example
Cerrado or other Amazonian countries- Medium-scale ranchers locked in a situation with lack
of access to credit and in need to invest to intensify- Some social risks since smallholders can be excluded
from supply chains due to capacity constraints- Also environmental risks due to adoption of artificial
solutions for increasing productivity and profits- May also lead to retarded economic development of
less developed regions or municipalities
BEEF CATTLE IN THE BRAZILIAN AMAZON
Total cattle population
81Million heads
Slaughterhouses
95In the Brazilian Legal Amazon
Cattle population
in smallholding
s 20%out of total
BLA
Pasture lands
60%out of total deforested
lands
Cattle population
38%out of total in the country
Stocking ratio
1.0Head/ha
3corporate
groups control most of the supply
10.5
Million hectares
cultivated
Labor
3.0Million people
27.8Million tons
CPO
Smallholders
42%of total
cultivated area
~600 Palm oil mills
25corporate
groups control most of the supply
Indonesia
3.5Tons
CPO/ha/yr
53%global CPO
supply
PALM OIL IN INDONESIA
Farmers
2.1Million
households
PUBLIC AND PRIVATE ARRANGEMENTS IN BRAZIL
Soybean moratoria – stimulated soy expansion on pasture lands The black list of municipalities - “green municipalities” model A key step: the environmental rural registry [TAC and CAR] The cattle agreement – involving JBS, Marfrig, and Minerva Significant legal reforms - approval of the new Forest Code Policies: insurance, land use planning, finance schemes for LCA
LESSONS FROM THE ACHIEVEMENTS Clear legal frameworks as well as distribution of
responsibilities among different levels of government Enforce regulations consistently based on
transparent monitoring open to the wider society Governments at intermediate levels play a key role
in land registration, planning and enforcement Institutional mechanisms to make accountable to
individual producers and company buyers Economic policy instruments (e.g. public credit,
fiscal transfers) to support environmental regulations Agreements among key actors (e.g. retailers,
industry and state) and compliance monitoring
SOME UNRESOLVED ISSUES
Limited adoption of good management practices for cattle beef Intensification with artificial and costly systems based on chemical inputs Medium-scale and smallholders more constrained to adopt new systems Deforestation is linked to smallholders often still expanding in frontier areas Persistence of leakage and laundry due to complex cattle beef value chains High-risk areas often related to lack of titling, and poor infrastructure Lack of positive incentives for producers to overcome constraints
WHAT LESSONS FOR INDONESIA? Agreed map among state actors identifying “go” and “no go” areas Clear sanction mechanisms with disclosure of non-compliant producers Transparent monitoring with open access of outcomes to wider society Promote compliance of environmental law under unclear tenure rights
BUT greater attention should be placed on: Identification of measures to support intensification Positive incentives for supporting the reduction of yield gaps Design of frameworks to incentivize inclusive business models
WAYS AHEAD
Increasing control and incentives in the supply chains- Extend the traceability from direct to indirect suppliers- Monitor and rewards for improvements in performance- Technical assistance with flexible technological packages- Investments in productive infrastructure and logistics
Policies to lower risk and increase investment attractiveness- Land regularization and clarification of tenure rights- Land taxation with differentiated rates depending on use- Integrate environmental criteria in commercial lending
Jurisdictional and/or territorial arrangements- Systems to monitor social and environmental performance- Certification processes with independent systems of verification- Fiscal incentives to support good environmental performance- Policies of preferential procurement by processors/industry
KEY QUESTIONS What are the unfinished tasks of the Brazilian policy framework to support smallholders
after deforestation slowdown in the Amazon? What positive incentives are needed? What more synergies between the public and private sector are needed to facilitate the
transitions towards more sustainable land uses and intensive production systems? What are the initiatives implemented by the beef industry in Brazil to foster more
sustainable supply chains? What else is needed to foster adoption of good practices? Is it possible to integrate supply chain and landscape management approaches? What
innovative perspectives have evolved in Brazil with potential for scaling up? What are the public and private arrangements needed in Indonesia to halt deforestation
and peatlands conversion while supporting more inclusive business models?