Brazil has the most favorable conditions on the planet to lead the global climate agenda through forest conservation, restoration, and forestry. This is the main conclusion of the study The Leadership of Brazilian Forests in the Global Climate Agenda, which presents consolidated data on the strategic role of Brazil’s forests in addressing the climate crisis.

According to the report, forests are among the most scalable and cost-effective climate solutions currently available, absorbing approximately one-third of annual global greenhouse gas emissions generated by human activities. Without conserved, sustainably managed, and restored forests, achieving the goals of the Paris Agreement becomes impossible.

Brazil occupies a central position in this context. The country is home to the world’s largest continuous area of tropical forests and holds the greatest global potential for forest restoration. Today, Brazil has approximately 500 million hectares of native forests, equivalent to nearly 60% of its national territory.

Two Scenarios for 2035

The study projects two scenarios for 2035. Under the baseline scenario, assuming average deforestation levels continue, the country would experience an estimated 1% loss in the carbon stock of its forest ecosystems.

Under the potential scenario, with illegal deforestation reduced to near zero by 2030, expanded forest restoration, and growth in commercial forestry, Brazil could achieve a net gain of approximately 1% in forest carbon stocks, reversing the historical trend of forest loss.

This progress could be achieved without competing with food production. The study indicates that vast areas of underutilized deforested land are available to support agricultural expansion while simultaneously enabling forest restoration and commercial tree planting.

Forest Code and Market-Based Instruments

Brazil already has a robust legal framework for forest protection, particularly through the Forest Code, which safeguards Permanent Preservation Areas (APPs) and Legal Reserves on rural properties. It is estimated that 215 million hectares are currently conserved or reforested within agricultural lands dedicated to food production.

The report also highlights promising financial mechanisms to scale up conservation efforts, such as the Tropical Forests Forever Facility (TFFF) and Jurisdictional REDD+. Alongside these instruments, command-and-control policies combined with territorial planning have already demonstrated their effectiveness. Between 2004 and 2012, for example, deforestation in the Amazon was reduced by 80%.

Expanding Forest Restoration and Commercial Forestry

Forest restoration using native species is emerging as a new economic frontier, attracting private investment and potentially reaching millions of hectares by 2035.

Meanwhile, commercial forestry based on exotic species—considered among the most competitive in the world—is expected to expand from 4 million hectares to as much as 6.2 million hectares over the next decade, primarily on previously degraded lands.

Beyond carbon sequestration, Brazil’s forests play a crucial role in regulating rainfall patterns, ensuring water security, supporting agricultural production, and conserving biodiversity.

According to the authors, consolidating Brazil’s leadership will require a combination of effective protection against illegal deforestation, expanded restoration efforts, strengthened bioeconomy initiatives, and the creation of financial mechanisms capable of transforming natural capital into a strategic asset for sustainable development.