Brazilian cattle ranching — currently responsible for most of the country’s greenhouse gas emissions — can also become the main lever to reduce deforestation and accelerate the climate transition in Brazil. This is the central finding of the new study “How Cattle Ranching Can Lead Brazil’s Climate Action”, published by the Amazônia 2030 project.

According to the study, cattle ranching occupies 64% of Brazil’s agricultural land — more than 160 million hectares — but generates only 17% of the sector’s gross production value. In the Legal Amazon, 80% of agricultural land (75 million hectares) is covered by pastures, of which 54% are degraded. This extensive, low-productivity model is closely linked to the main drivers of deforestation in both the Amazon and Cerrado biomes.

“The study shows that increasing cattle productivity in already cleared areas, with proper technical assistance and well-targeted credit, is more efficient and cheaper than continuing to deforest,” explains Paulo Barreto, researcher at Imazon and co-author of the study. With well-designed policies, it is possible to maintain production, reduce emissions, and conserve the forest.

Three Recommendations for More Sustainable Cattle Ranching

The study outlines three key guidelines to align cattle ranching with Brazil’s climate goals and its Nationally Determined Contribution (NDC):

1. Target investments in high-impact zones — Areas within a 60 km radius of slaughterhouses concentrate 96% of processing capacity and already have better infrastructure and fewer embargoes. Prioritizing policies in these regions accelerates productivity gains and reduces pressure on the forest.

2. Reorient rural credit toward productivity and climate goals — Only 30% of the R$ 8.5 billion contracted in 2023 in the Amazon was allocated to actions that increase productivity. Better allocation of these resources could restore 216,000 hectares of pasture per year, offsetting the average expansion of the past decade and reducing direct emissions per kilogram of beef by up to 74%.

3. Eliminate incentives for speculative deforestation — Allocate approximately 50 million hectares of undesignated public forests (19 million federal and 31 million state-owned) to conservation, Indigenous territories, and protected areas. This would address the root causes of illegal deforestation and reduce financial risks for the country.

Cattle ranching is the main source of emissions in the agricultural sector, which accounts for about 75% of Brazil’s greenhouse gas emissions. Environmental degradation has a direct economic impact: according to the Central Bank, cattle ranching is the most exposed sector to climate transition risks, with a credit portfolio estimated at R$ 130 billion (2022). Extreme climate events are already affecting the country’s financial stability, with 44% of financial institutions reporting impacts in 2024.

For the researchers, COP30, which will take place in Belém in November 2025, represents a historic opportunity for Brazil to present a robust climate transition plan anchored in low-carbon cattle ranching.

“The transition to more efficient and deforestation-free cattle ranching is not only possible, but necessary for the future of the Amazon and the global climate,” Barreto emphasizes.