Reducing Fertilizer Emissions: Brazil

Overview

Between their production and application, synthetic fertilizers contribute are responsible for around 2.1% of global emissions – a footprint similar to that of the global aviation industry.

In Brazil, these fertilizers contribute just 1% of the country’s total emissions, or about half of the global average. So what’s the trick? Brazil has successfully reduced agricultural emissions from synthetic fertilizers by developing and deploying plant-specific biological inoculants – crop inputs incorporating microbes to aid plant growth.

The Brazilian Agricultural Research Corporation (Embrapa), the enabling body behind the country’s rapid deployment of these crop inputs, was founded by the Brazilian Ministry of Agriculture, Livestock and Food Supply (MAPA) in 1973 to ensure domestic food security and to develop international food, fiber and energy markets.

Embrapa is funded by the government and finances the deployment of agricultural technologies through public and private partnerships. The group’s activities helped transform Brazil from a net agricultural importer in the 1970s to the largest agricultural commodity exporter globally by 2018.

Impact

In Brazilian soybeans, inoculants can replace the need for nitrogen fertilizer. Embrapa’s low-cost inoculants mimic naturally occurring bacteria in the roots of legumes like soybeans, which capture atmospheric nitrogen and ‘fix’ nitrates in the soil. The nitrates increase crop growth, without the additional emissions associated with synthetic fertilizers.

Nitrogen fertilizers, such as urea, break down into nitrates, so are applied to increase yields. During this process, nitrous-oxide is released, emitting 1.15-1.56 billion metric tons of CO2 equivalent annually.

By reducing urea use, farmers saved an estimated $15.2 billion over the 2019 to 2020 harvest, mitigating 183 million metric tons of CO2 equivalent from Brazilian soybean production. Inoculants have been deployed across 25% of Brazil’s 27.7 million hectares of soybean crops. Today, Embrapa’s inoculant portfolio covers other crops with high fertilizer use, including sugarcane, maize, rice and wheat.

There’s another benefit to these inoculants, too. Embrapa estimates 70% of nitrogen fertilizers used in Brazil are imported, and deployment of this biotech has allowed Brazil to begin onshoring agricultural inputs.

Opportunity

Reducing agricultural emissions has become an increasingly prominent element in Embrapa’s strategy. In 2020, MAPA launched the Brazilian Plan for Adaption and Low Carbon Emission in Agriculture (renamed the RenovAgro plan in 2023), which Embrapa is responsible for delivering over 2020-2030. RenovAgro goals include expanding the adoption of biological inputs across 13 million hectares. For the 2024-25 cropping season, $1.4 billion has been made available to Brazilian farmers to achieve RenovAgro goals.

Brazil’s biologicals market grew 15% in the 2023-24 cropping season – four times the global average rate – enabling Brazil to become a global leader in the space. This growth was driven by Embrapa’s development and production of low-cost biologicals, combined with MAFA aiding deployment through reduced interest rates on loans for biological inputs. Embrapa estimates Brazil’s bioeconomy industry could be worth $284 billion by 2050 if it successfully incorporates emissions reduction technologies, biomass as an energy source and biologicals.

African research organizations, including the Forum for Agricultural Research in Africa, have partnered with Embrapa, as many African countries have nutrient-poor and acidic soils, so stand to benefit from agricultural practices developed for similar soil types in Brazil. Projects are ongoing between Embrapa and countries including Nigeria, Kenya and Ethiopia. Channeling domestic sustainable agriculture investment to inoculants could increase soil nutrient availability, while reducing the need for imported synthetic fertilizers and minimizing agricultural emissions.

Source

BloombergNEF, The Brazilian Agricultural Research Corporation