G20 finance ministers begin meeting in Sao Paulo

Following President Luiz Inacio Lula da Silva outlining poverty reduction and climate change reform as G20 priorities last November, the finance ministers of Brazil will gather today in Sao Paulo to discuss pathways forward.

During the 2023 COP28 in Dubai Brazil signed the Declaration on Sustainable Agriculture, Resilient Food Systems, and Climate Action. By signing the agreement, Brazil demonstrated its commitment to support farmers living on the frontline of climate change. However, Brazil remains one of the most unequal countries globally.  Brazilian family farming accounts for 70% of the food consumed by the population, yet these farms occupy only 23% of Brazil’s arable land. The current agricultural system not only contributes to a discriminatory labor market but also results in adverse environmental consequences such as heavy greenhouse gas emissions. Today’s meetings hope to address the challenge of transitioning away from the older agricultural system.

In a best-case scenario, Brazil’s adherence to the requirements of the declaration may lead to a considerable decrease in deforestation and support food security in areas most affected by climate change. Brazil is likely to allocate more funds to scaling agricultural innovations and recovery of deforested areas which could generate net revenue in the long run. Should Brazil opt for the diversification of agriculture and expansion of social policies, poverty reduction in the rural population may follow suit.