Brazil: Arc of Restoration Project

pipeline

This operation will promote forest restoration in the Arc of Restoration in Brazil with a focus on the Tocantins-Araguaia basin, a key transition area between the Cerrado and the Amazon located in the states of Para, Tocantins, Maranhão and Mato Grosso. The operation is the core of the NPC Brazil Investment Plan, which central objective is to promote forest restoration in areas of the Tocantins-Araguaia Basin and consists in providing the concessional resources to the BNDES, which in turn will apply them into its credit lines related to forest restoration in the target territory.The direct beneficiaries of the project are private companies in the forest restoration sector borrowing resources to finance their respective business projects in the Brazilian restoration chain. Project financing will be mostly invested in the restoration of areas characterized mainly by low-productivity pastures and agriculture in private rural properties. The financing of private companies will contribute to mobilize large-scale capital and to strengthen the nascent forest restoration industry.Investments in agroforestry systems and forest integration models, which incorporate high-value crops, have become increasingly attractive for agricultural producers of various scales, encouraging the adoption of sustainable practices that contribute to the recovery of degraded areas and increased agricultural productivity. In this evolving landscape, the Project holds a huge potential for engaging small-scale farmers and traditional producers from anchor companies and for strengthening local communities, making them more resilient to climate change, increasing the provision of key eco-system services, generating global public goods.Furthermore, in order to contribute to a just climate transition with gender equality and social inclusion – a core principle of the NPC-BR Investment Program – a survey of data and information on the gaps and inequalities of gender, race and social inclusion in the intervention region shall be carried out and subborrowers shall conduct meaningful consultations with local stakeholders at the time of elaboration of forest restoration subprojects.Finally, it is worth to highlight that – as part of the NPC-BR Investment Plan – project financed resources will be complemented by the supplemental Dedicated Grant Mechanism (DGM/NPC), which will solely benefit Indigenous Peoples and traditional communities within the Tocantins-Araguaia basin.