Summary
This report evaluates the effectiveness of Brazil’s ABC Recuperação credit line, a key public policy initiative aimed at recovering degraded pastures and promoting sustainable agricultural practices. With approximately two-thirds of Brazil’s pastures, totalling 100 million hectares, being degraded, the government has committed to restoring 30 million hectares by 2030. Despite efforts to mobilise US$ 120 billion for the recovery of 40 million hectares, this study finds that the impact of ABC Recuperação credit on pasture recovery is modest. The analysis shows minimal changes in the most severely degraded areas, with only marginal reductions in degraded pasture area. However, areas that accessed the credit experienced a shift from prior deforestation trends. The study highlights the need for improved monitoring, better targeting of credit recipients, and the integration of additional interventions such as technical assistance and risk management tools. To maximise the programme’s potential, the authors suggest that it is essential to understand the challenges limiting recovery and ensure that credit is used effectively alongside other initiatives, such as the National Programme for the Conversion of Degraded Pastures into Sustainable Agricultural and Forestry Production Systems.