COP29, Brazil’s New NDC, and the Impacts on Agribusiness: Innovation as a Strategic Pillar

The 29th United Nations Climate Change Conference (COP29), held in Baku, Azerbaijan, brought global attention to the urgent challenges of climate change, particularly its impact on food security, energy transitions, and climate resilience. As extreme weather events and rising global temperatures intensify, this summit served as a pivotal forum for nations to advance collective actions on both mitigation and adaptation.

A central theme of COP29 was addressing the vulnerabilities of agricultural systems worldwide, especially in regions like Latin America, where climate impacts on food production are already severe. Discussions emphasized the need for innovative solutions, financing mechanisms, and robust policy frameworks to ensure that agriculture becomes a driver of sustainability rather than a victim of climate change.

For Brazil, COP29 was a key moment to reaffirm its global leadership in sustainability and agribusiness. The country presented its updated Nationally Determined Contribution (NDC), which includes ambitious targets for reducing greenhouse gas emissions, protecting critical ecosystems, and promoting sustainable agricultural practices. As one of the world’s largest food producers, Brazil’s actions are not only essential for national climate goals but also for ensuring global food security.

The intersection of climate change and agriculture positions innovation as a vital tool to transform challenges into opportunities, driving a sustainable transition that balances productivity with environmental stewardship.

Brazil’s New NDC: Ambitions and Implications

Brazil’s updated NDC includes the following commitments:

Emission Reductions: A pledge to cut net greenhouse gas emissions by up to 67% by 2035.

Zero Illegal Deforestation: Eliminate illegal deforestation by 2030, ensuring the preservation of critical biomes such as the Amazon.

Scaling Sustainable Technologies: Increase the adoption of bioinputs, regenerative soil management practices, and digital tools in agriculture.

These ambitious targets align Brazil with the Paris Agreement and position agribusiness as a key sector for climate mitigation, requiring significant shifts in land use practices and the adoption of innovative technologies.

Climate Change Impacts on Brazilian Agribusiness

Climate change presents significant challenges to Brazil’s agribusiness sector, including:

·         Drought and Desertification: Changing rainfall patterns are leading to prolonged dry periods, reducing water availability for irrigation and impacting crop and livestock productivity.

·         Heatwaves: Rising temperatures affect plant growth and crop quality while causing thermal stress in livestock, resulting in reduced milk and meat production.

·         Climate Variability: Extreme weather events, such as heavy rainfall and storms, disrupt agricultural planning and increase production costs.

·         Pests and Diseases: Altered climate conditions are intensifying the prevalence of pests and diseases, increasing costs for control measures and reducing yields.

Innovation as a Pillar for Resilience and Sustainability

Innovation is key to addressing these challenges, promoting resilience, and ensuring the sustainability of agribusiness. Key areas of transformation include:

1. Bioinputs and Soil Regeneration

Bioinputs, such as biopesticides, biofertilizers, and biostimulants, improve soil health, reduce reliance on chemical inputs, and enhance crop resilience. Companies like Genica and Punabio, supported by SP Ventures, are at the forefront of this innovation.

Advanced bioinput technologies (fourth generation) offer comprehensive solutions for soil regeneration and carbon sequestration, aligning with both adaptation and mitigation goals.

2. Financial Inclusion Through Agri-Fintech

Agri-fintechs, such as Traive and Verqor, provide small and medium-scale farmers with access to affordable credit and insurance. These services encourage the adoption of sustainable practices, such as precision irrigation and drought-resistant crops.

Conditional credit schemes, combined with climate risk insurance, protect farmers from financial losses due to extreme weather.

3. Digitalization and Climate Smart Management

Platforms like Agrosmart enable real-time monitoring of climate, soil, and crop conditions, empowering farmers to make data-driven decisions that reduce waste and enhance resilience.

4. Adaptation and Monitoring Systems

Climate monitoring tools and early warning systems help farmers anticipate extreme weather events and take preventive actions, improving productivity and reducing losses.

SP Ventures: Driving Agribusiness Transformation

Through its AgVentures II Fund, SP Ventures plays a pivotal role in scaling climate-smart technologies across Latin America. By investing in bioinputs, agri-fintech, digital supply chains, and management systems, SP Ventures ensures the inclusion of small and medium-scale farmers who often face barriers to accessing innovative solutions.

SP Ventures also prioritizes initiatives that support regenerative agriculture and climate resilience. By partnering with startups such as Promip and PunaBio, the fund fosters scalable solutions that improve productivity, soil health, and environmental sustainability.

COP30: A Global Leadership Opportunity

The upcoming COP30, to be held in Belém, Brazil, in 2025, offers the country a unique opportunity to showcase its progress in sustainable agriculture and its leadership in addressing climate challenges. As host, Brazil can present innovative case studies that highlight the integration of productivity and conservation, fostering partnerships between governments, private sector players, and academia.

The Amazon’s role as the event’s backdrop underscores the global importance of preserving natural ecosystems and promoting sustainable development in the face of climate change.

Path Foward

The outcomes of COP29 and Brazil’s new NDC underline the critical need to transform agribusiness in the face of climate change. Through innovation, financial inclusion, and digital transformation, the sector can lead the transition to sustainable practices, ensuring food security and climate resilience.

SP Ventures is a key enabler of this transformation, investing in technologies that democratize access to solutions and foster regenerative and efficient agriculture. COP30 will serve as a milestone to solidify these advances and connect Brazil’s leadership in agritech to the global climate agenda.

Juliana De Podestá

Head of ESG and Impact