Comparison study ofChinese and Brazilian
Agriculture Criteria
Harmonising green
standards in the
agricultural sector

Prepared by the Climate Bonds Initiative

Supported by the Gordon and Betty Moore Foundation

1. Report summary
Contents
1. Report summary 2
2. Green agriculture
in China and Brazil 3
Chinese and Brazilian low-carbon andgreen agricultural trade 3
Chinese and Brazilian low-carbon
agricultural policies 4
Chinese and Brazilian green
finance markets 6
3. Criteria for green agriculture 7
Motivation for developing harmonised
criteria for green agriculture 7
Overview of green agriculture criteria 7
Comparison of green agriculture
activities in China and Brazil 7

The purpose of this report is to cross reference
agriculture standards and taxonomy requirements
between China and Brazil, highlight best practice,and suggest policy and market measures to scale
sustainable agriculture finance.
China and Brazil are among the world’s top fiveproducers and exporters of agricultural productswith a significant portion of their population
working in agriculture.1 The two countries havedeveloped a robust collaborative relationshipincluding strategic partnerships in agricultural
trade, with Brazil being a major exporter ofagricultural products to China.
Agriculture contributes about 30% of
greenhouse gases (GHG) emissions, which isone of the primary contributors, and remains
highly vulnerable to climate-related risks.2 Given
the economic importance of agriculture in bothcountries, China and Brazil have prioritised
agriculture in the creation of policies to support
sustainable development.

Key messages:
1. The information presented in this report can
inform the design of the Brazilian taxonomy, withparticular emphasis on agriculture, elements ofwhich could be modelled on the Chinese taxonomy.
2. Simultaneously, it provides a foundation onwhich both China and Brazil could collaborate
on a harmonised taxonomy for green agriculturein the future. This shared taxonomy would scale
green financial flows between both markets andbuild a common understanding of the benefits ofpurchasing from sustainable production chains.
3. Using the China-Brazil collaboration in green
agriculture, this study also seeks to bolster
connectivity across international taxonomies forgreen agriculture.

4. Policy Recommendations 8
Guidance for Brazil’s green agriculture
criteria development 8
Recommendations for China-Brazil
harmonised green standards
in agriculture 8
Appendix 10
Endnotes 15

Comparison study of Chinese and Brazilian Agriculture Criteria Climate Bonds Initiative22. Green agriculture in China and Brazil
China has maintained its position as the primary
importer of Brazilian agricultural products forseveral consecutive years, and the collaboration
between the two nations in the agricultural
sector continues to intensify. In 2022, the valueof Brazil’s agricultural exports to China reached
USD50.8bn,3 and mainly included soy products,
meat, forest products, sugar and alcohol, fibers
and textiles. Soybeans and beef as the mosttraded commodities, are also closely associatedwith Brazil’s agricultural emissions.
In the context of global trade, agriculturalactivities linking producing and consuming
nations present a common challenge: the needto optimise the use of agricultural resources
and advance supply chain sustainability. This
challenge has emerged as a central focus ofcollaboration between China and Brazil in theirefforts to establish a sustainable green agriculture
supply chain. Through their partnership, China
and Brazil aim to accelerate the development ofgreen agricultural technologies and promote ecofriendly agricultural products, thereby making
a valuable contribution to global initiatives toaddress climate change.

Brazil-China Joint
Statement on combatting
climate change
In April 2023,
Presidents Xi Jinping
and Lula da Silva
collaborated on a
Joint Statement on
combatting climatechange (Statement) acknowledging theseverity of climate change and the urgent
need to address it through action.12 The
Statement stressed the need to combine
urgent climate response with nature
conservation to achieve the Sustainable
Development Goals (SDGs) including theeradication of poverty and hunger whileleaving no one behind. The two countries
also reiterated their commitment topromote policy dialogues and sharing on
climate investment and finance.

Agricultural GHG emissions in China and Brazil
Share of global
GHG emissions

Agri-food share ofnational GHG emissions

Agri-food share of
global GHG emissions

China

31%

14%

4%

Brazil

3%

75%

2%

Chinese and Brazilian
low-carbon and green
agricultural trade
China-Brazil agricultural
trade partnership
The 30-year strategic
partnership and the deepening
economic and trade
collaboration between China and Brazil have laida solid foundation for fostering green agricultural
trade. In 2022, China and Brazil published two
documents on intergovernmental collaboration,
the China-Brazil Strategic Plan 2022-2031 andthe China-Brazil Implementation Plan 20222026.4 These documents explicitly outlined thecommitment to collaborate on boosting thetrade of agricultural products and investing in
low-carbon and clean technologies. In 2023,
Brazil’s President Lula da Silva of Brazil made astate visit to China, leading to the establishmentof several collaborative agreements between
the two nations. Among these agreements
was a pivotal accord that enabled the use of
local currencies in bilateral trade and financing
activities.5 The visit also saw the release of a jointstatement on deepening the comprehensive
strategic partnership and the Brazil-China jointstatement on combating climate change (seebox). Collectively, these have established arobust strategic framework for advancing green
agricultural trade and investment.

BrazilBrazil is the largest exporterof beef, poultry, soybeans,coffee, orange juice, sugar,
and corn. In 2022, theagricultural sector contributed
25% to Brazil’s Gross
Domestic Product (GDP). Since the 1950s, Brazil has
transformed from a food importer to a major foodsupplier. As global demand for food and agricultural
products grows, Brazil will play an increasingly
important role in meeting such demand.9
Since 2009, China has been the largest importerof agricultural products from Brazil. In 2022,
bilateral trade between China and Brazil
amounted to USD171.49bn, of which USD50.8bn
accounted for agricultural products imported by
China from Brazil a 43% increase compared tothe previous year.10 Rising food standards, driven
by China’s growing middle class, are expected tocontinue fostering the growth of agricultural trade
between the two nations.11 This underscores thestrategic importance of maintaining sustainability
within the supply chain.

China
As both a major producer
and consumer of agricultural
products, China places
a strong emphasis on
agricultural development
and food security. It
produces approximately 25%of the world’s grain supply on less than 9% of
global farmland, which means that on an annual
grain planting area of 118.33m ha, 686.53m
tonnes of grain are produced in 2022. By 2032,
China’s grain output is expected to reach 767
million tons with average annual growth of 1.2%.6
The total agricultural output in 2022 reached
RMB8,443.9bn (USD1,158bn), and China’s total
import and export of agricultural products
reached USD334.32bn7,8.

Comparison study of Chinese and Brazilian Agriculture Criteria Climate Bonds Initiative3

According to Faostat, livestock entericfermentation, synthetic fertilisers, and crop
residues are all significant sources of agriculturalemissions in the two countries but the
proportions differ.
Although Brazil’s global GHG emissions
constitute only 3%, agriculture, forestry, andother land use (AFOLU) account for a substantial
63% of those. Deforestation, in addition
to increasing GHG emissions and harming
biodiversity, poses a direct threat to foodsecurity and results in notable economic losses.
Studies indicate that an increase in soybean
cultivation and cattle breeding in the Amazon
region could trigger reduced rainfall in Brazil’s
soy belt, impacting the country’s soybean
production. These economic losses could reachapproximately 10%, equivalent to USD700m
annually. In the context of agricultural trade
between China and Brazil, deforestation is oneof the most pressing climate change risks.
Core commodities in the low-carbon and green
agricultural trade between China and Brazil
Soybeans and beef have the highest-emitting
value chains with the most significant risk of
deforestation. Soybean and beef production are
not only driving over two-thirds of the recorded
habitat loss in Brazil’s Amazon and Cerrado
regions and Argentina and Paraguay’s Gran Chaco
region, but also in 2021.13
Soybeans and beef also represent the corecommodities between China and Brazil, basedon volume, value, and climate-related anddeforestation risks. In 2022, the soybean trade
between China and Brazil alone reached 54.39m
tonnes, accounting for 60% of China’s totalsoybean imports and 31% of Brazilian exports
to China. This was followed by frozen beef.14
Given that soybeans and beef represent themost significant commodities in the agriculturaltransition between China and Brazil.

Agricultural products imported
to China from Brazil in 202227
Product

Volume(10,000
tonnes)Soybeans

5439

Beef and by-products

110

Chicken and by-products

55

Cotton

57

Sugar

417

Pork and by-products

44

Share in IPCC Agriculture total
Manure applied
to soils 4%
Burning crop
residues 1%
Manure left
on pasture
9%Enteric fermentation
28.3%

Synthectic
Fertilisers
21.6%

Crop residues 2%
Savanna fires 3%
Burning crop
residues 1%
Synthectic
ManureFertilisers
left on pasture 6.0%
16%

China

Manuremanagement
9%

BrazilRicecultivation
22.6%

Crop residues 5%

Enteric
fermentation 70%
Manure applied to soils 2.4%
Rice cultivation 1%
Manure management 2%
Source: FAOSTAT

Chinese and Brazilian lowcarbon agricultural policies
The transition of agricultural
production will be key torealising climate goals in both
China and Brazil. Since eachcountry is tackling different
sources of emissions, theirgreen agriculture policies focus on different areas.
China’s strategies for mitigating agriculturalemissions primarily revolve around the technicalaspects of agricultural production. They prioritise
the adoption of green and low-carbon agricultural
technologies, encompassing measures suchas reducing and enhancing the efficiency offertiliser use, methane reduction in rice fields,
managing livestock manure, optimising theutilisation of straw, improving the energy efficiency
of agricultural machinery, and promoting thedevelopment of agricultural carbon sinks.
The Brazilian strategy prioritises changing
land use and livestock breeding to address
climate change. Despite existing legislation,illegal deforestation and land conversion
for agricultural purposes persist. Brazil isalso focused on improving the efficiency ofagricultural production increasing the output
from current agricultural land. This is achieved
through methods such as land rehabilitation, thesupport of intensive livestock management, theestablishment of a crop-livestock-forest farming
system, and the research and development of
tropical cultivation techniques. These measuresenable the efficient utilisation of existing land
and help mitigate the need for expanding
agricultural production onto new territories.

Comparison study of Chinese and Brazilian Agriculture Criteria Climate Bonds Initiative

NDC commitments(Will be updated)
China

Peaking carbon emissions
before 2030, and carbon
neutrality by 2060

BrazilCarbon neutrality by 2050
and carbon emissions
reduced by 37% by 2025,
and 50% by 2030.

Chinese green agriculture policies
China incorporated sustainability into its
agricultural development planning in 2015.
Since then, several policies and plans havebeen developed to promote green agriculturaldevelopment, including the National Sustainable
Agricultural Development Plan (2015–2030),
the Technical Guidelines for Green Agricultural
Development (2018–2030), the Plan for the Green
Development of China’s Agricultural Sector
During the 14th Five-Year Plan Period, and the
Implementation Plan for Carbon Reduction and
Sequestration in Agriculture and Rural Areas. These
policies are designed to optimise developmentlayout, safeguard arable land resources, improvewater efficiency, control environmental pollution,and restore the agroecosystem. They focus on
fostering sustainable agricultural developmentby addressing resource utilisation, environmental
management, agroecosystems, the supply of green
agricultural products, and the capacity for carbon
sequestration. The plans are focused on supporting
green inputs, production technologies, andpost-production value-added technologies, while
also promoting green and low-carbon farming
structures and technology models. Attention is4

Low-carbon
Agriculture
Programme

Implementation time

Total Budget

Main Activities

Implementation

Phase I (ABC)

2010—2020

USD1.5bn

Rehabilitation of degradedrangelands

Targets met: establishment of nearly 6m hectaresof integrated farming systems, 10m hectares of notill production; and treatment of 4.5m cubic metersof animal manure.

Promotion of integrated croplivestock-forest farming systems
Agroforestry complex ecosystems
Biological nitrogen fixation
Phase I-II
(ABC+
Renovagro)

2020—2030

About
USD1.27bn inthe 22/23 budget

switching to strengthening green criteria andreducing the intensity of GHG emissions frommajor agricultural products. While specificemission reduction and carbon sequestration
targets are not currently outlined in agriculturalplanning, it is anticipated that relevant metrics will
be further integrated into existing plans to alignwith the development of green agriculture.15
A list of China’s major green agriculture policies
can be found in the Appendix (Table 1).

Brazilian green agriculture policies
The Brazilian Ministry of Agriculture, Livestock
and Food Supply (MAPA) has adopted a series
of initiatives to promote sustainable agricultural
production and reduce GHG emissions. Firstly,
Brazil has introduced the Agricultural Plan (Plano
Safra), which provides funding and support forfarmers to promote the adoption of sustainableagricultural practices.16 The objective is to boost
environmentally sustainable production systems
for pasture recovery with lower interest rates andawards for producers with sustainable practices.
According to MAPA, Brazil’s green agriculture
is centred around technological innovation,
environmental legislation (with the Forest Codeas the core), and public governance of agrienvironmental sustainability.17
A list of Brazil’s major green agriculture policies
can be found in the Appendix (Table 2).
Several initiatives that Brazil has adopted forsustainability in the agriculture sector deserve tobe highlighted:

Reforestation and animal
waste treatment
Specific actions for adaptation toclimate change

Target not met: only about one third of the targeted
degraded rangelands have been rehabilitated withrespect to the targets for rehabilitation of degradedrangelands and reforestation.
Target: 72.6m hectares covered and 1.1bn tonnesof CO2 equivalent emissions reduced(COP15) in 2009, which has since then become
Brazil’s core policy to incentivise green andlow-carbon agriculture. Its strength it that itsupports emission reduction technologies andadaptation initiatives in the agricultural sector
and encourages farms to adopt sustainableagricultural practices with preferential loans.

Brazil’s overall agricultural planningLand governance and environmental complianceare prioritised in Brazil’s environmental
governance and green agriculture planning.
Specifically, this includes strengthening theidentification and management of land, ensuring
the legality of land use. It also ensures theimplementation of the Forestry Code and theapplication of environmental compliance tools,
such as the Certificate of Rural Environmental
Registration (CAR).19 This accelerates theanalysis and certification of the more thansix million rural properties registered in the
CAR and advancing the use of the Payment
for Environmental Services (PES) instrument
proposed in the Forestry Code.
According to the Sector Plan for Adaptation to
Climate Change and Low Carbon Emissions inAgriculture with a view to Sustainable Development(ABC Plan and ABC+) and and Plano Safra(Harvest Plan), Brazil emphasises:• Fostering and strengthening technologicalinnovations that ensure the sustainability ofBrazilian agricultural and livestock production;

2. The Forest Code; and• The development of low-carbon tropical scienceand technology to increase production capacity,
raise incomes, increase climate resilience, andreduce greenhouse gas emissions;3. The Low-carbon Agriculture Plan andsubsidised line of credit (ABC Plan and ABC+Plan), currently sitting under the Agricultural Planand renamed as Renovagro.18• Development of a bioeconomy, including fibre
production, renewable energy, environmental
and ecosystem services, and biological inputs;
and

The Brazilian Sustainable Agriculture Strategy
includes layers of incremental policies thatcomplement and strengthen one other. The
ABC Plan is part of Brazil’s first commitment
made at the Conference of the Parties 15• The development of the Biofuels
Programme (Renovabio), the world largest
programme to support the decarbonisationof an economic sector.

1. The Plano Safra;

Comparison study of Chinese and Brazilian Agriculture Criteria Climate Bonds Initiative

To finance agricultural production in Brazil, theHarvest Plan proposes expanding agricultural
credit, promoting the participation of theprivate market in the financing of rural credit,
and designing new financing instruments, suchas green bonds and sustainably linked bonds(SLBs). It also revises agricultural subsidy policies
to prioritise social development for poor rural
producers, ensuring that agricultural subsidy
activities integrate rural producers into policies
and plans to promote social development.
The plan includes accompanying measures
such as infrastructure for trade facilitation, therestructuring of technical assistance policies
at the national level, and the enhancement of
the connection between technical assistanceand rural development, particularly focusing onsustainable tropical technologies. These policies
aim to promote climate-smart agriculture,ensure environmental compliance, and promotesustainable agricultural practices.

Comparison of Chinese and Brazilian
green agricultural policies
Securing agricultural production under themultiple constraints of land degradation,
pollution, and climate change is a sharedchallenge for China and Brazil. The two countries
share similar priorities for green agricultural
policies, including:• Enhancing the efficient use of resources• Improving the efficacy of agricultural productivity• Addressing climate change adaptation• Modernising agriculture.
These common policy priorities can be further
strengthened by increased international
collaboration and technology exchange.
There are also differences in green agriculture
policies between China and Brazil.
Curbing deforestation and land-use change
are priorities in the development of green
agriculture in Brazil. Brazil’s green agriculture
policy proposes the adoption of various

5forms of crop-animal husbandry, focuses on
the coordination and integration of different
agricultural production systems, and strengthens
the effective use of existing land resources while
protecting forests.
China’s green agriculture policy centres on themodernisation of agriculture, the enhancementof production technology and efficiency, thereduction of chemical inputs, and the supportof eco-friendly farming practices. Key focal
points include pollution control and the efficient
recycling of resources. Policy and financial
subsidies serve as the primary tools guiding thetransition to green agriculture, which prioritises
the green certification of imported products.
China has established organic agriculture
certification, the green agriculture label, andadditional market certification systems, which
aim to raise awareness and recognition of green
agriculture within the market.

Chinese and Brazilian green
finance markets
China is one of the countries
with the most comprehensive
green finance policy
frameworks in the world.15
China’s green loan balance
has achieved the largest in
the world.20 As of the end of 2022, China’s green
credit scale reached RMB22tn.21 In 2022, China
became the world’s largest green bond market,
with issuance of RMB575.2bn (USD85.4bn).22
According to the data from Climate Bonds, Brazil
stands as one of the largest green bond markets
in Latin America. By the end of 2022, USD31bn
of green, social, sustainability, sustainabilitylinked, and transition bonds had originated from
Brazil, with agriculture being among the sectors
receiving the most substantial green bondfinancing.23 Moreover, the Brazilian government
has embarked on the development of asustainable taxonomy aimed at addressing thesignificant environmental and social challenges
faced by the country, with a particular emphasison the agricultural sector. As per the Brazilian
government’s plan, the sustainable taxonomy for
Brazil is slated to be unveiled in November 2024
and is set to be compulsory fromJanuary 2026.
The establishment of a credible green investment
criteria is a top priority for advancing green
agricultural development.
Brazil is the largest destination for Chinese
investment in Latin America, accounting for 47%
of Chinese direct investment in the region.24 Overthe past decade, Chinese investment in Brazil has
exhibited substantial growth, averaging an annual
rate of 30%. In 2022, China was one of the leading
foreign investors in Brazil channelling USD67.5bn into
oil and gas, mining, telecommunications, automotive
manufacturing, infrastructure, and agriculture.25

Total loans and underwriting (2010-2022) attributable to the soybean
and beef supply chain in Brazil28
Instrument type

Amount (USD millions)% of total

Bond issuance

2378

72%

Corporate loan

572

17.3%

Revolving credit facility

284

8.6%

Share issuance66

2%

Shareholding

3

0.1%

Bondholding

2

0.06%

The Chinese state prioritises investment in theBrazilian agriculture sector. This is channelled
through large state-owned enterprises andfinancial institutions with a primary focus on
supporting national strategies and ensuring foodsecurity. Currently, most of China’s agriculturalinvestments in Brazil support the processing
and storage segments of the soybean industry
chain. Additional investments are directed
toward Brazil’s infrastructure development
to enhance the agricultural logistics system.
China’s financial collaborations in Brazil are
primarily dominated by loans and bonds. Loans
are typically extended by policy banks. For
instance, the Special Loan Programme for ChinaLatin America Infrastructure Project, totalling
USD20bn, is a government loan issued by the
China Development Bank, aimed at supporting
projects in agriculture and other sectors.26 Bonds
are mostly from Chinese financial institutions,providing financial support to businesses in thesoybean and beef sectors.
Agricultural investment in Brazil is moremarket-oriented, centred on large traders andfarmers and drawing on finance from a wide
range of sources. This includes participationfrom national financial institutions, sovereign
funds, global commercial financial institutions,and investors. Brazil’s green finance practices inagriculture are aimed at promoting sustainableagricultural development. The country
actively encourages agricultural producers to
adopt eco-friendly agricultural practices by
providing favourable financing terms to those

who embrace sustainability. Additionally, theCentral Bank of Brazil has implemented specificsustainability due diligence requirements forthe financial sector. This includes a prohibitionon lending to areas associated with illegal
deforestation and ensuring that sustainability
factors are taken into account by financial
institutions when granting loans.
As China’s green soft commodity value chain
continues to improve, Chinese investments
and trade in Brazilian agriculture will amplify
the regulations and requirements surrounding
deforestation and land conversion to
mitigate risks within the agricultural value
chain. Furthermore, Chinese investors might
encounter physical risks and transition risks
associated with climate change, if they do nottake adequate measures to enhance climate
adaptation and mitigation.
The introduction of policies such as the EU
regulation on deforestation-free products has
spurred international investors to place greater
emphasis on sustainable supply chains inagriculture. There is a growing recognition of
the pivotal role that agriculture and food supply
chains play in relation to environmental damage,climate change, and the associated risks andopportunities. Enhanced environmental andclimate risk management in agriculture andfood investment and financing by international
investors will provide further external impetus.

Examples of climate change risks for agriculture
Physical risks

Transition risks

Droughts and unstable rainfall pattern

Costs of adoption of new practices

Inundation

Access to technical assistance

Hail damage

Availability of technology

Wind damage

Employment and other social issues

Excessive heat

Regulation and compliance

Pests and pathogens

Reputation

Salinisation

Comparison study of Chinese and Brazilian Agriculture Criteria Climate Bonds Initiative6

3. Criteria for green agriculture
Motivation for developing
harmonised criteria forgreen agriculture
The sustainable or green
taxonomy is a classification
system that relies on a set ofcriteria to outline economic
activities and assets thatalign with environmental andsustainability objectives. Existing sustainable/
green taxonomies provide market playerswith clear guidelines and help investors andbusinesses prioritise green activities.
The absence of clear and universally accepted official
definitions has resulted in a lack of comparability,
credibility, and accountability while driving up
transaction costs.29 The development of well-defined
criteria for green agriculture can instil greater
coherence and credibility within the agricultural
sector’s green development. This can help reduce therisk of greenwashing by issuers and enhance capitalliquidity. Robust criteria for green agriculture canalso assist central banks and regulators in creating
more precise incentives. At the local government
level, such criteria can support the compilation of
databases for green agriculture projects, thereby
determining the orientation of policy support andfacilitating bank-business matchmaking.
With the guidance of a clear taxonomy, financial
institutions can establish the direction for capital
investment and assess the Use of Proceeds (UoP).
Based on such a taxonomy, they can launchinnovative financial products, improve theinformation disclosure system, and enhance
disclosure transparency. This is conducive forbusinesses to determine the alignment forsustainable development of the green agriculturalindustry and define their path of industrial transition.
In interoperable markets, a green taxonomy can
expedite the flow of capital across borders. This isachieved by, for instance, diminishing due diligencecosts. In cross-border activities, incongruent
green definitions may result in ambiguous
delineations for economic activities and projects
associated with green agriculture, consequently
elevating investment costs for both businesses andinvestors. In contrast, the harmonisation of green
taxonomies for agriculture can alleviate market
fragmentation and streamline the movement ofgreen capital to bolster sustainable agriculture.
Furthermore, given that a taxonomy can support
the setting of baselines, labels, and other
instruments, establishing interoperable green
taxonomies can facilitate consistency acrossfinance instruments.
Coordination in green finance contributes tothe sustainable socio-economic partnership
between China and Brazil. This is particularly
evident in their joint efforts to bolster green

agricultural development, where green financecan serve as a driver for the country’s green
agriculture initiatives. Conversely, by intensifying
collaboration and fostering synergies in areasof mutual interest, the two countries can more
effectively leverage resources.

Overview of green
agriculture criteria
Criteria for green agriculturalinvestment and financing
helps lenders to recognise
green agriculture activities
and evaluate and addressenvironmental and climaterelated risks associated with agriculture. This
contributes to bolstering the sustainability,
climate adaptation, and resilience of agricultural
production, as well as helping to direct capital
flows to appropriate projects.
In China, the Green Bond Endorsed Projects
Catalogue (2021 Edition), commonly referred
to as the Green Bond Catalogue, and the Green
Industry Guidance Catalogue (2019 Edition)
established by financial market regulators,
include agriculture as a key sector. They include
a series of green agricultural activities eligible forthe green bond market in the form of a whitelist.
In 2020, Climate Bonds set agriculture criteria formarket stakeholders. The full set of agriculture
criteria for Climate Bonds Certification was
released in 2021, adding Criteria for livestock.
The Criteria delineate and evaluate the green
characteristics of agricultural projects concerning
climate change mitigation, climate adaptation,and resilience. Additionally, they specify therequirements that agricultural assets or projects
must satisfy, further refining the scope andcategories of the UoP.
China’s Green Bond Catalogue does not
categorise activities by sector but instead
encompasses green activities across six areas(the economic sectors of energy conservationand environmental protection, clean production,clean energy, ecological environment, green
upgrading of infrastructure, and green services).
As a result, agricultural activities are included
within each sector. In contrast, Climate Bonds
has formulated a systematic approach toidentifying green activities by establishingtechnical screening criteria and unified
principles and objectives.

financing. This taxonomy stands as a vital pointof reference for benchmarking agricultural
criteria between China and Brazil. A comparisonof activities across the Green Bond Endorsed
Projects Catalogue (2021 Edition), the Climate
Bonds Taxonomy, and the China-EU Common
Ground Taxonomy for Sustainable Activities is
included in the Appendix (Table 3).

Comparison of green
agriculture activities in
China and Brazil
This section provides acomparison and analysis of the
agriculture-related section ofChina’s Green Bond Catalogue
and Brazil’s financial incentives
for green and low-carbon
agriculture. A summary of the comparison canbe found in the Appendix (Table 4). The primaryobjective is to evaluate specific green agriculturalactivities supported by the policies of bothcountries. Collation and analysis reveal thecomparability, commonalities, and differences
between the two countries’ policies in green
agricultural activities, as well as their shortcomings.
While both China and Brazil’s agriculture criteria
encompass several activities that comply withgreen agriculture, the two countries sharecommon challenges related to environmental andclimate concerns that require further clarification
and resolution. To develop China-Brazil
harmonised criteria, several key issues require
special attention, including the DNSH principle,
climate goals, climate resilience, and biodiversity
conservation. Agriculture criteria should
uphold the DNSH principle, which emphasises
minimising negative impacts on the environment
and ecosystems during agricultural production.
Additionally, climate adaptation and resilience
are important considerations for agricultural
financing. These criteria should provide guidanceon technologies and measures for bolstering
agricultural adaptation and resilience.

The China-EU Common Ground Taxonomy
for Sustainable Activities enhances thecomparability of criteria for green financeacross countries. It offers valuable support andstreamlines the interoperability of taxonomies
to support the international bond markets,
facilitating cross-border green investment andComparison study of Chinese and Brazilian Agriculture Criteria Climate Bonds Initiative7

4. Policy Recommendations
Guidance for Brazil’s
green agriculture criteria
development
The development of ataxonomy should begin
with the establishment ofprinciples and objectives,
which should then befollowed by the identificationand clarification of green assets and activities.
These assets and activities should draw fromnational plans, policies, and other sources. They
can contribute to the achievement of definedgoals and address priorities.

Taxonomy design
Climate Bonds suggests five elements that should
be considered in the design of a national taxonomy.
1. Selecting the correct approach
A green taxonomy not only addresses climatechange but also streamlines the process ofnational environmental governance. To date,taxonomy design has been approached in
two ways: the whitelist approach, and thetechnical screening approach. China adopted
the whitelist approach by listing the green
activities that needed financial support. Thisapproach is straightforward and relatively easy to
execute; however, because of unclear screening
criteria, it can lead to difficulties in measuring
the contribution of economic activities to theenvironment. Globally recognised criteria,such as those established by Climate Bonds,
take a technical screening approach with aset of sectoral screening criteria based on
environmental and climate objectives. These
criteria define green activities by delineating therange of activities and the UoP, thereby ensuringthat each activity contributes to emission
reduction targets. However, this approachrequires issuers to identify eligible projects,
thereby increasing operational costs.
Brazil’s taxonomy could combine thetwo approaches. During the taxonomy’s
development, Brazil could list activities inaccordance with its green agriculture planning.
To guarantee that all activities made meaningful
contributions to emission reduction, Brazil
should formulate plans based on the final
emissions goal, set a baseline year for emissions
levels, and conduct regular monitoring. Brazil
should develop clear and measurable criteria
for sustainable agriculture based on scientificevidence and best practices. These criteria
should exhibit the flexibility to adapt to diverse
agricultural systems and regions.

2. Establish principles
To ensure uniformity, coherence, and effectivenessin the criteria’s application, the Brazilian
Government should propose a framework ofprinciples. This framework, while offering clear
direction for green agriculture, should embed
flexibility in the criteria’s implementation andserve as the foundational basis for any potential
necessary adjustments. It should consist primarilyof overarching guiding principles, such as the
DNSH principle, which is observed by China,
the EU, and Climate Bonds. Brazil may also
contemplate more focused principles concerning
critical subjects, such as the principles of nodeforestation and biodiversity conservation.
Principles should include rules to be followed
during implementation, including openness,science-basis, ensuring the engagement of small
and medium-sized farmers, and guaranteeing
equity. They may also include restrictive principles,such as prohibiting the purchase, processing, ortransportation of products of an illicit origin.

5. Connect the taxonomies of different
countries in relevant areas
Connecting the Brazilian taxonomy to that ofother countries in relevant areas would amplify
the influence of green agricultural productsupply chains, enticing more international
capital to participate, and giving a boost to
trade and economic growth. The establishment
and alignment of green agriculture taxonomies
between Brazil and China could enhance Brazil’s
agricultural trade interoperability with China,
leveraging synergies and saving resources. For
instance, the unification of criteria for sustainablesoybean and beef production between China
and Brazil will enable eligible products toreceive more financial support in production,
procurement, and marketing, thereby bolstering
their competitiveness in the market.

3. Set targets and prioritise them.
During the development of green criteria, it isnecessary to establish well-defined emission
reduction targets and standards and to identify
activities that contribute to the achievement of
the targets and categorise them as eligible for thegreen agriculture criteria. Prioritising activities
based on their contributions ensures the effective
allocation of resources. For activities thatmake a substantial contribution to emissions,separate emission reduction targets may beset. For example, emissions stemming from theproduction and trade of commodities such as
soybeans and beef should be a priority. Moreover,
it is essential to specify environmental objectives
for critical matters such as forest conservation,soil restoration, biodiversity preservation, andrural area development.

China and Brazil havesubstantial opportunities
for future collaboration inpursuing a green transitionand sustainable development.
Climate Bonds suggests sevenactions to propel the partnership forwards.

4. Ensure the taxonomy is complete,
practical, and effective.
The scope of activities should be set ascomprehensively as possible. It should
encompass not only activities directly tiedto agricultural production but also extend toencompass supporting facilities, including
infrastructure development. The demand forinfrastructure to support agri-food systems
is rising, and it requires substantial financial
investments to construct infrastructure thatis resilient to disasters and climate change
while enhancing transportation efficiency.
Consequently, the construction of infrastructurethat supports green agriculture should beconsidered in the criteria. In addition, theimplementation of the taxonomy should
undergo regular monitoring and evaluation
to guarantee its effectiveness in propelling
sustainable agricultural practices and attaining its
environmental, social, and economic objectives.

Comparison study of Chinese and Brazilian Agriculture Criteria Climate Bonds Initiative

Recommendations for ChinaBrazil harmonised green
standards in agriculture

1. Establish a Brazilian green agriculture
criteria to facilitate interoperability between
China and Brazil. This would provide a clear
framework for green agriculture practices, andinvestment. Building upon this foundation, thetwo countries could collaborate on developinga harmonised taxonomy that would expedite
the transition to low-carbon and climateadaptive agriculture while strengthening tradeand cooperation in sustainable agriculture. The
following are suggested actions for establishing
China-Brazil green agriculture criteria. 1. The
central banks of both countries should workin tandem to coordinate various sectors andestablish a harmonised taxonomy. 2. Particularfocus should be placed on key topics suchas decarbonising soil use, harnessing thepotential of forest carbon sinks, agriculturalcarbon sequestration, the role of the carbon
trading system, ensuring traceability within
the agricultural value chain, and biodiversity
conservation. 3. Infrastructure development
should be incorporated into the green agriculture
criteria. Infrastructure inputs, which have not yet
been included in sub-programmes for low-carbon
agriculture in China and Brazil, are indispensablefor promoting low-carbon and green agriculture
in both countries. Climate-adaptive andclimate-friendly infrastructure is conducive toresilient and adaptive agriculture and provides a
critical foundation for efficient and high-quality
agricultural production.
8

2. Prioritise key areas of green agriculturaldevelopment. China and Brazil should identify
areas of symbiosis in the agricultural sector.
Both countries should bolster investment andcollaboration in agricultural sectors that holdmutual interest, including the eight agriculturalactivities identified in the Appendix (Table 5),
which are agricultural productivity, resource
efficiency, agroecosystem construction, livestock
and poultry manure treatment and application,
crop residue management, land restoration andconservation, energy, including energy contained
in inputs and sustainable agriculture training.
Both countries should intensify their focus on
innovation and R&D in relevant agriculturalscience and technology. For example, they could
build intensive farms specialising in supplying
beef that meets sustainable production
standards. Second, as both China and Brazil
grapple with shared challenges and complexities
in the pursuit of low-carbon green agriculture,
which includes conserving biodiversity,
fortifying climate resilience in agriculture, andcurbing deforestation across the supply chain,
the two nations should prioritise discussions
and partnerships in these domains to set
common goals and action guidelines to shape asustainable commodity value chain.

sustainable value chain between China and Brazil;
and 4. examining a green financing model that
integrates stocks and bonds has the potential todecrease investment costs while attaining value.
6. Establish partnership platforms withfinancial institutions. These could facilitate
investors’ collaboration in matching projects,
identifying and assessing climate-relatedrisks, reducing investment research costs, andexploring investment opportunities in low-carbon
agriculture, and ensure investors’ comprehensive
understanding of and easier access to available
investment and financing instruments.
7. Enhance dialogue. China and Brazil could
establish long-term and stable communication
channels through platforms such as the BRICS
and the South-South Cooperation. This would
encourage offline interaction opportunities,
the regular exchange of information ontechnology, finance, and business, andenhanced coordination in business, policies,
and investment. Exchange programmes should
be launched to facilitate visits by agriculturalexperts, researchers, and policymakers. These
programmes would allow for the sharing of bestpractices, and knowledge, and the promotion ofcooperation on sustainable agriculture projects.

3. Establish bilateral trade agreements
to support investment and financing forsustainable agriculture. Such agreements
should delineate shared objectives andprinciples that underpin collaboration in thiscritical area. At the same time, both countries
may designate or establish agencies to support
investments in sustainable agriculture. Suchagencies could provide potential investors with
one-stop services for information, guidance, andassistance, streamlining the investment process.
4. Direct capital flows to areas such as lowcarbon agriculture and climate-adaptive
and resilient agriculture. Incentives, such asa China-Brazil special fund for green agriculture,loans and subsidies, and tax concessions
and redemption, would create a conducive
financial environment for investments in green
agriculture. In addition, financial institutions
should prioritise green lending and aggregation
to bring more large deals to the green bondmarket. This would encourage more investors
to back green investment strategies supporting
sustainable agriculture.
5. Reduce transaction costs and create
risk-appropriate investment conditions forinvestors. Green financial innovation can beachieved by 1. introducing public-sector funds
such as sovereign loans, guarantees, and othertools to reduce investors’ capital costs andinvestment risks; 2. encouraging green financial
products and programmes, such as green or
sustainability bonds, sustainability-linked bonds
and loans, and other loans; 3. issuing special
panda bonds to support the establishment of aComparison study of Chinese and Brazilian Agriculture Criteria Climate Bonds Initiative

9

4. Appendix
Table 1: Major green Agriculture policies of China
Date of Issuance

Issuer(s)PolicySummary

May 2015

Ministry of Agriculture and Rural
Affairs, National Development andReform Commission, Ministry of
Science and Technology, Ministryof Finance, Ministry of Land andResources, Ministry of Environmental
Protection, Ministry of Water
Resources, and National Forestry
Administration

National Sustainable
Agricultural
Development Plan
(2015-2030)30

Five key tasks are proposed to promote sustainableagricultural development: (1) optimising the developmentlayout and steadily enhancing agricultural production
capacity; (2) protecting arable land resources and promoting
the sustainable use of farmland; (3) saving and efficiently
using water and securing agricultural water use; (4) combating
environmental pollution and improving the agricultural andrural environments; and (5) rehabilitating the agricultural
ecology and upgrading ecological functions.

August 2018

Ministry of Agriculture and Rural Affairs

Technical Guidelinesfor Green Agricultural
Development(2018-2030)31

The main tasks are (1) developing green inputs, (2) researchingand developing green production technologies, (3) developing
green post-production value-added technologies, (4)innovating in green and low-carbon farming structures andtechnology models, (5) developing integrated development
technologies and models for green villages, and (6)strengthening of the basic research on green agriculturaldevelopment and improving the green criterion system.

September 2021

Ministry of Agriculture and Rural
Affairs, National Development andReform Commission, Ministry of
Science and Technology, Ministry of
Natural Resources, Ministry of Ecology
and Environment, and National
Forestry and Grassland Administration

Plan for the Greendevelopment ofChina’s Agricultural
Sector During
the 14th Five-Year
Plan Period32

As China’s first specialised plan for green development, it setsout five development goals for intensifying green agriculturaldevelopment: 1) resource utilisation; 2) environment of
the place of origin; 3) agroecosystems; 4) supply of green
agricultural products; and 5) emission reduction and carbon
sequestration capacity and relevant key tasks and measures.
It makes systematic arrangements for green agriculturaldevelopment during the 14th Five-Year Plan period. Under
the carbon neutrality policy, it sets new targets, calling for(1) a significant reduction in the intensity of GHG emissions
from major agricultural products; (2) an enhanced capacity
for agricultural emission reduction, carbon sequestration, andresponse to climate change; and (3) an effective improvementin agricultural energy efficiency.

July 2022

Ministry of Agriculture and Rural
Affairs and National Development andReform Commission

Implementation
Plan for Carbon
Reduction and
Sequestration in
Agriculture andRural Areas33

This sets out some key tasks to peak carbon dioxide emissions
and achieve carbon neutrality, including fertiliser reductionand efficiency; reduction of rice-field methane, GHG fromanimal husbandry, fishery and agricultural machinery;
farmland carbon sinks; and comprehensive utilisation of straw.

Comparison study of Chinese and Brazilian Agriculture Criteria Climate Bonds Initiative10

Table 2: Brazil’s major green Agriculture policies
Date ofIssuance

Issuer(s)PolicySummary2023

FederalGovernmentof Brazil

Agricultural
Plan (Plano
Safra)

Plano Safra, created by the federal government, is the main Brazilian agricultural policy instrument. It
allocates funds for investment or for costing, industrialisation, and commercialisation of agricultural
products. In 2023, the fund’s value reached a historical high of BRL 364bn (USD73bn), 26.8% up
from the previous year. The government’s goal in the Agricultural Plan is to boost environmentally
sustainable production systems, with lower interest rates for pasture recovery and awards for
producers with sustainable practices. The Plano Safra has 13 programmes in the financing line forinvestments, including the new Renovagro, the former ABC+ Plan.

2012

FederalGovernmentof Brazil

Forest Code

The Brazilian Forest Code is a federal law that requires rural landowners to designate and maintaina percentage of their property area under forest cover to preserve remnants of native vegetation
on rural lands and to conserve biodiversity. In addition, the Forest Code requires all landowners to
restore deforested areas on their properties. The Forest Code has two implementation instruments.
The first is the Rural Environmental Registry (CAR11), which provides georeferenced data of ruralproperties, including boundaries of the land and the location of Permanent Preservation Areas(APP), Legal Forest Reserves, restricted areas, and agricultural production areas. The second is theEnvironmental Regularisation Programme (PRA), an instrument designated for landowners that are
not in compliance with the Legal Forest Reserve and APP under the Forest Code.

2011

FederalGovernmentof Brazil

Low-carbon
Agriculture
Plan (ABC)(2010—2020)

Brazil created the ABC Plan under the National Policy on Climate Change to reduce carbon dioxide
emissions from human activities. Its objective is to foster the implementation of technologies and theuse of low-carbon agricultural practices to restore degraded forest areas, as well as the managementof natural forests and the development of integrated crop-livestock-forest farming systems. The ABC
Plan was created by Brazil to address the dilemma of the world’s largest agricultural exporter in the faceof limited agricultural resources and the impact of climate change. By providing government loans to
producers, the plan’s objective is to improve efficiency in the use of natural resources, restore, recover,and conserve ecological reserves, increase the resilience of productive systems and rural communities,
and enable the sector to adapt agriculture to climate change, thereby promoting the reduction of GHG
emissions in agriculture.

2020

FederalGovernmentof Brazil

Low-carbon
Agriculture
Plan (ABC+)(2020-2030) /Renovagro

The ABC+ Plan, created in 2020, is a continuation of Brazil’s Low-carbon Agriculture Programme. It
aims to build a more sustainable and resilient agricultural production system based on technologicalinnovation.
One of the new programmes of the Plano Safra launched in 2023 is Renovagro, the former ABC+ plansubsidised line of credit. Renovagro is a programme for financing sustainable agricultural production
systems with the objective of encouraging adaptation to climate change and low-carbon emissions
in agriculture and livestock.
It finances practices such as the recovery of degraded areas and pastures, the implementation andexpansion of integrated crop-livestock-forestry systems, the adoption of conservation practices
for use and the management and protection of natural resources. The implementation of organic
agriculture, restoration of permanent preservation areas or legal reserves, the production of
bioinputs and biofertilisers, systems for generating renewable energy and other practices that involve
sustainable production and culminate in low emission of greenhouse gases can also be financed.
The programme has three modes:• Environmental Renovagro, to finance the restoration of legal reserves and permanent protection
areas (APP) on properties.
• Renovagro Recovery of Pastures, for investments in the recovery of degraded pastures, such as systems
of integrated farming, livestock, forestry (ILPF), alternative energies and direct planting systems in straw,
and• RenovAgro - Other Investments in Sustainable Systems and Practices, which will finance all othersustainable agricultural practices.

2023

FederalGovernmentof Brazil

Incentive
Programme forTechnologicalInnovation in
Agricultural
Production(Inovagro)

Another important investment incentive programme launched in the Plano Safra. It aims to support
investments in technological innovation in rural properties, aiming at increasing productivity and theadoption of good agricultural practices.

Comparison study of Chinese and Brazilian Agriculture Criteria Climate Bonds Initiative

11

Table 3. A comparison of activities across the Green Bond Endorsed Projects Catalogue (2021 Edition),
the Climate Bonds Taxonomy, and the China-EU Common Ground Taxonomy for Sustainable Activities
Green Bond Endorsed Projects Catalogue(2021 Edition)

Climate Bonds Taxonomy

China-EU Common GroundTaxonomy for Sustainable
Activities

General Comparison
Applicability

Green bond issuers, investors, administrators

Green bond issuers and investors

Investors, administrators, anddecision-makers

Standardsetter

People’s Bank of China

Climate Bonds

International Platform on
Sustainable Finance (IPSF)

UoP

Green industries, green economic activities,
and other green projects in line with thetaxonomy, including the construction,
operation, acquisition, accompanying working
capital replenishment, and repayment ofinterest-bearing debts of green projects

Eligible agricultural production operations andcapital expenditures

Green industries, green
economic activities, andother green projects in linewith the taxonomy

Principle

Do No Significant Harm (DNSH) principle:
Principles for implementing the criteria
include compliance with national policies andalignment with international criteria.

Alignment with the Paris Agreement. Activities
must support climate change mitigation.
Principles are in place for equity, effectiveness,and inclusiveness.

DNSH principle

Screening
Criteria

Activities set out in the taxonomy

Climate change mitigation threshold set: net
reduction in GHG emissions upon the base year

The more stringent criteria
between the EU Taxonomy
and China’s Green Bond
Catalogue

Green Agriculture Criteria
Goal

No separate sectoral goals have been set.
The overall goals are resource conservation
and recycling, ecological conservation, andadaptation to climate change.

Supporting low-carbon agriculture anddeveloping agriculture that is adaptive
and resilient to climate change without
undermining the climate resilience of thesystems in which it operates

Mitigating climate change,
without separate sectoral
goals

Categories
and features

The agriculture criteria are focused on pollution
control (primarily water resources and soil
resources), green production inputs and waste,
and technological upgrading for the use ofpesticides, livestock and poultry breeding
waste, and the treatment of waste agriculturalfilms. No unified green agriculture criteria havebeen set. The certification of activities follows
existing national certification systems or rules.

Certification criteria have been set foremission reduction and climate adaptation forcrop and livestock production.

Mitigating climate change

Agriculture
activities

In terms of agricultural production inputs, it isfocused on pollution control, including waterand soil pollution as well as pesticide inputs. In
terms of outputs, it is focused on the treatment
and utilisation of production by-products andwaste, green warehousing, and the production,
consumption, and trade activities of organicand green agricultural products.

1) Perennial and non-perennial crop productionand2) livestock production

The taxonomy for sustainable
activities adopted by the EU
and China’s green financecatalogue are compared andevaluated, and commonly
recognised economic
activities are included in the
Common Ground Taxonomy.

Comparison study of Chinese and Brazilian Agriculture Criteria Climate Bonds Initiative

12

Table 3. A comparison of activities across the Green Bond Endorsed Projects Catalogue (2021 Edition), theClimate Bonds Taxonomy, and the China-EU Common Ground Taxonomy for Sustainable Activities
Green Bond Endorsed
Projects Catalogue(2021 Edition)

Climate Bonds Taxonomy

China-EU Common
Ground Taxonomy for
Sustainable Activities

Projects or economic activities within the scope will be screened on
two dimensions: 1) GHG emission reduction; and 2) climate adaptation
and resilience.

Forests

Green agriculture criteria
Requirements

No base year has
been set, nor arequirement for emission
reduction or adaptation
to climate change.

Conditions for mitigation: net reduction in GHG emissions or increase incarbon sequestration, measured in tCO2e, based on the starting year of
the investment (known as the base year). Agricultural mitigation includes
activities that reduce absolute emissions or emissions intensity (definedas emissions/unit of production) or GHG efficiency against the base year or“business as usual” baseline projection. Mitigation also includes activities
that store carbon in soil or biomass (trees, shrubs, crop, and grass).

• Tree planting• Forest rehabilitation
and restoration• Forest management• Forest resource
conservation

All bond issues shall contribute to climate change mitigation andincreasing asset resilience, reducing absolute emissions, or increasing
carbon sequestration.
Issues involving livestock shall meet minimum standards of animal welfare.

Table 4. comparison and analysis of the agriculture-related section of China’s Green Bond Catalogue
and Brazil’s financial incentives for green and low-carbon agriculture
Agriculture Activities in China’s Green Bond Catalogue

Alignment with Brazil Green Agriculture Policy

Comprehensive governance of agricultural and rural environment

Integrated Landscape Approach (ILA)• Prevention and control of surface pollution in agriculture, forestry,and grassland; and green approaches to prevention and control ofcrop pests and diseases• Environmental compliance framework• Landscape value• Restoration and conservation of soil quality, water, and biodiversity

Comprehensive utilisation of biomass resources and clean energy

Interconnection between adaptation and mitigation• Recycling of agricultural waste: facilities for recycling agricultural waste
and their applications, such as facilities for the production of material
fuels from crop residues and facilities for the production of biogas fromlivestock and poultry pollution, and support for the manufacturing of
biomass energy utilisation equipment

Reduce or limit soil rotation

Cleaner agricultural production• Production of efficient pesticides with low-toxicity andresidue as substitutes• Control of livestock and poultry waste and pollution: clean farming
retrofitting; construction of facilities for farm wastewater, manurecollection, and hazardous materials treatment; air pollution control
retrofitting and construction, etc.
Green agriculture:• Agricultural resource conservation: modernised seed industry andqualified conservation of animal and plant species, construction
and operation of protected areas and reserves for agricultural crop
cultivation, prevention and control of pests and biological disasters,
and comprehensive rural land treatment• Green agricultural supply: green organic agriculture, green livestock,and green fishery

Maintain crop residues on the soil surface• Reduce or limit uninterrupted tillage• Maintain crop residues on the soil surface• Maintain species diversification through crop rotation, intercropping
and/or continuous cropping• Operate effective emergency response systems, including prevention,
control, and combat through the integrated risk management system,
weather forecasting and early warning, and regional zoning• Socio-economic and environmental performance analysis system• Knowledge and technology transfer
Adoption and maintenance of Sustainable Production Systems,
Practices, Products and Processes (SPSABC)• Rehabilitate degraded pastures• No-tillage system• Agroforestry system• Commercial forestation• Biological nitrogen fixation• Irrigation system• Animal manure treatment• Intensive cattle finishingConfined cattle slaughter
Other specific actions for climate change adaptation

Comparison study of Chinese and Brazilian Agriculture Criteria Climate Bonds Initiative

13

Table 5. Common green agriculture activities
Common Agriculture
Activity

Description

Agricultural productivity

Reduce emissions and improve efficiency by upgrading of agricultural
production technologies to increase the efficiency of agricultural
production, including innovations in seeds, fertilisers andmachinery, digital technologies, and farm management practices.

Resource efficiency

Enhance efficiency and sustainability of agricultural production bymeans of water-saving irrigation techniques, improved soil water
retention capacity, etc.

Agroecosystemconstruction

Improve ecosystem stability and climate resilience of agricultural
production by conserving and restoring agroecosystems.

Livestock and poultry
manure treatment andapplication

Treat and utilise livestock and poultry manure in a sciencebased way, including constructing manure treatment facilities
such as bio-gasification and biogas power generation, to reduce
environmental pollution, improve resource efficiency, and enhance
the sustainability of agricultural production.

Crop residue management

Collect crop residues for sustainable use, including recycling straws.

Land restoration andconservation

Adopt land conservation policies to prevent land degradation and overcultivation of land resources; increase net soil carbon sequestration.

Energy, including energy
contained in inputs

Promote the development and utilisation of renewableenergy in agriculture.

Sustainableagriculture training

Education, promotion, and improvement of good
agricultural practices.

Comparison study of Chinese and Brazilian Agriculture Criteria Climate Bonds Initiative14

Endnotes
1. IDB, Agriculture in Brazil and China: Challenges and Opportunities,
2006.10, https://publications.iadb.org/en/publication/agriculturebrazil-and-china-challenges-and-opportunities
2. UNDP, Food system impacts on biodiversity loss, February 03, 2021,
https://www.unep.org/resources/publication/food-system-impactsbiodiversity-loss
3. Macao Trade and Investment Promotion Institute, China imported
US$50.8 billion in agricultural products from Brazil in 2022, 31 Jan 2023,
https://www.ipim.gov.mo/zh-hans/portuguese-speaking-countriesnews-sc/2023-01-31-2022%e5%b9%b4%e4%b8%ad%e5%9b%bd%e8%bf%9b%e5%8f%a3508%e4%ba%bf%e7%be%8e%e5%85%83%e5%b7%b4%e8%a5%bf%e5%86%9c%e4%ba%a7%e5%93%81/
4. Xinhua, China, Brazil to boost investment, trade cooperationin multiple sectors, May 24, 2022, https://english.www.gov.
cn/news/internationalexchanges/202205/24/content_
WS628ce340c6d02e533532b402.html
5. Atlantic Council, What the Lula-Xi partnership means for the world,
April 14, 2023, https://www.atlanticcouncil.org/blogs/new-atlanticist/
what-the-lula-xi-partnership-means-for-the-world/
6. China Agricultural Science and Technology Press, China Agricultural
Outlook Report (2023-2032), 2023, https://www.agri-outlook.cn/
index/index/article.html?id=2637&is_top=1.
7.National Bureau of Statistics of China, Statistical Bulletin of thePeople’s Republic of China on National Economic and Social
Development 2022, February 28, 2023, https://www.stats.gov.cn/sj/
zxfb/202302/t20230228_1919011.html
8. epa.comnews.cn, China’s agricultural products: Exports grew
rapidly and imports continued to optimize, 15 Feb 2023, https://epa.
comnews.cn/pc/content/202302/15/content_4998.html
9. Constanza Valdes, Brazil’s Momentum as a Global Agricultural
Supplier Faces Headwinds, September 27, 2022, https://www.ers.
usda.gov/amber-waves/2022/september/brazil-s-momentum-as-aglobal-agricultural-supplier-faces-headwinds/
10. China Daily, China-Brazil Economic and Trade Cooperation
Deepens, April 12 2023, http://paper.people.com.cn/rmrb/html/202304/12/nw.D110000renmrb_20230412_1-03.htm
11. UN ECLAC, Toward a New Era of Economic Cooperation between
China and Latin America, 2015.05, https://repositorio.cepal.org/
items/9ebff1ff-6919-4378-82a1-85010878aad7
12. Brazil-China Joint Statement on Combating Climate Change,
April 2023. https://www.gov.br/mre/en/contact-us/press-area/pressreleases/brazil-china-joint-statement-on-combating-climate-change
13. Obersteiner, M. Forthcoming. Title TBD., https://link.springer.com/
chapter/10.1007/978-981-16-4799-4_9

14. WWF, What Are the Biggest Drivers of Tropical Deforestation?
2018, https://www.worldwildlife.org/magazine/issues/summer-2018/articles/what-are-the-biggest-drivers-of-tropicaldeforestation#:~:text=Beef%20production%20is%20the%20
top,and%20fourth%20biggest%20drivers)%20combined.
15. China Environment News, How to Promote Emission Reduction
and Carbon Sequestration in Agriculture? 2023.09, https://mp.weixin.
qq.com/s?__biz=MzIxNzU0MDU5Nw==&mid=2247517925&idx=1&sn=61f367f70bbcc170d98a35cb2642f7d1&chksm=97faf47fa08d7d692319f6b062d98f0e51d519b1b896b2b9cd17ed15002fa42be44122a73d5c&scene=27
16 https://www.gov.br/agricultura/pt-br/assuntos/noticias/plano-safra2023-2024-incentiva-sustentabilidade-e-conta-com-13-programas-paracusteio-comercializacao-e-investimentos#:~:text=O%20Plano%20Safra%202023%2F2024,familiares%20at%C3%A9%20os%20mega%20produtores
17 https://www.planalto.gov.br/ccivil_03/_ato2011-2014/2012/lei/l12651.htm
18 https://www.gov.br/agricultura/pt-br/assuntos/sustentabilidade/planoabc-abcmais/publicacoes/abc-portugues.pdf
18. https://www.car.gov.br/#/19. https://www.car.gov.br/#/
20. Government of the People’s Republic of China,. China’s green
bond stock is the largest in the world, https://www.gov.cn/
xinwen/2022-03/08/content_5677832.htm
21. Sina.com, China’s Green Loan Balance Exceeds 22 trillion yuan,
May 28, 2023, https://finance.sina.com.cn/esg/2023-05-28/docimyvkcmu9140268.shtml
22. Climate Bonds source states: Climate Bonds recorded
USD85.4bn (RMB 575.2bn) in its Green Bond Database (GBDB) in
2022, with a cumulative tally of USD286.9bn (RMB1.9tn). China was
the largest source of green bonds in 2022, according to Climate
Bonds definition.
23. Latin America and the Caribbean State of the Market 2022, Climate
Bonds Initiative, August 2023, Untitled design (climatebonds.net)
24. Ana Garcia, Maria Elena Rodriguez,. etc. Chinese Investments in
Brazil: Investment Data, Public Policies for Investment Facilitation And
The Case Of The Manaus Industrial Pole, https://bricspolicycenter.
org/wp-content/uploads/2023/07/BRICS_ChinaBrasil-7.pdf
25. Source of Data: Data sources: Forests & Finance, https://
forestsandfinance.org/
26. Ministry of Commerce of the People’s Republic of China,
Instructions for Applying for the Special Loan for China-Latin America
Infrastructure, June 24, 2015, http://sr.mofcom.gov.cn/article/ddfg/
qita/201506/20150601022280.shtml

Prepared by the Climate Bonds Initiative

27. General Administration of Customs of the People’s
Republic of China, 2022 Import and Export Monthly Statistical
Report. http://www.customs.gov.cn/customs/302249/
zfxxgk/2799825/302274/302277/4185050/index.html
28. China Environment News, “What are the climate change risks to
the Belt and Road Initiative investments? August 18. 2023, http://www.
cfej.net/jizhe/cmlw/202108/t20210813_856348.shtml
29. Brazil’s Ministry of Agriculture and Livestock. Harvest Plan
2023/2024 encourages sustainability and has 13 investment programs.
July 14 2023. https://www.gov.br/agricultura/pt-br/assuntos/noticias/
plano-safra-2023-2024-incentiva-sustentabilidade-e-conta-com-13programas-para-custeio-comercializacao-e-investimentos
30. China’s Ministry of Agriculture, National Development and Reform
Commission, Ministry of Science and Technology, etc., issued anotice on the issuance of the “National Agricultural Sustainable
Development Plan (2015-2030)”, May 20 2015, http://www.gov.cn/
gongbao/content/2015/content_2941167.htm
31. China’s Ministry of Agriculture and Rural Affairs, Notice on Issuingthe “Technical Guidelines for Agricultural Green Development(2018-2030)”, July 2 2018, http://www.gov.cn/gongbao/content/2018/
content_5350058.htm
32. China’s Ministry of Agriculture and Rural Affairs, National
Development and Reform Commission, Ministry of Science andTechnology, etc., issued a notice on the issuance of the “14thFive-Year Plan for National Agricultural Green Development Plan”,
September 7 2021 http://www.moa.gov.cn/govpublic/FZJHS/202109/
t20210907_6375844.htm
33. Ministry of Agriculture and Rural Affairs and National Development
and Reform Commission, Notice on Issuing the «Agricultural and
Rural Emission Reduction and Carbon Sequestration Implementation
Plan», June 29 2022 http://www.kjs.moa.gov.cn/hbny/202206/
t20220629_6403713.htm

Supported by the Gordon and Betty Moore Foundation

Authors:
Climate Bonds Initiative: Shaoxin Li, Sheila Alves
Institute of Finance and Sustainability (IFS): Yunwen Bai
Strategic Consultant
Zhejiang University: Prof. Kevin Zhigang Chen
Acknowledgement: Xie Wenhong, Caroline Harrison, Leonardo Gava,
Bridget Boulle, Matteo Bigoni, Leisa Souza, Xinxi Chen(IFS), Jinyu Yang
Design: Godfrey Design, Joel Milstead© Published by Climate Bonds Initiative, December 2023
www.climatebonds.net
Disclaimer: The information contained in this communication does not constitute investment advice in any form and the Climate Bonds Initiative is not an investment adviser. Any reference to a financial organisation or
debt instrument or investment product is for information purposes only. Links to external websites are for information purposes only. The Climate Bonds Initiative accepts no responsibility for content on external websites.
Climate Bonds Initiative is not endorsing, recommending, or advising on the financial merits or otherwise of any debt instrument or investment product and no information within this communication should be taken as
such, nor should any information in this communication be relied upon in making any investment decision. Certification under the Climate Bond Standard only reflects the climate attributes of the use of proceeds of adesignated debt instrument. It does not reflect the credit worthiness of the designated debt instrument, nor its compliance with national or international laws. A decision to invest in anything is solely yours. The Climate
Bonds Initiative accepts no liability of any kind, for any investment an individual or organisation makes, nor for any investment made by third parties on behalf of an individual or organisation, based in whole or in part on
any information contained within this, or any other Climate Bonds Initiative public communication.

Comparison study of Chinese and Brazilian Agriculture Criteria Climate Bonds Initiative15