Brazilian coffee farms could hold at least 15 million tonnes of carbon in the coming years—an asset that could become a source of revenue once this market is regulated, a process currently under debate in the National Congress. A new platform, developed through a public-private partnership, aims to provide coffee producers of all sizes with a tool to quantify the carbon capture potential on their properties.
The project’s goal is to offer the sector a unique methodology for calculating carbon credit inventories. Rafael Melo, CEO of E2Carbon—a startup involved in the initiative—explains that existing market parameters follow a forest-based perspective, where credits are recognized when specific practices lead to additional carbon capture beyond what would occur conventionally. This principle is known as “additionality.”
Through this initiative—developed with Sebrae and the Brazilian Company for Industrial Research and Innovation (Embrapii)—the platform will initially measure the carbon captured by coffee trees and the soil they grow in. Later, it will factor in management practices, including the types of fertilizers, pesticides, and other inputs used in cultivation.
Management practices have a significant impact on carbon credit potential, making estimates highly variable. “Switching fertilizers or urea sources already contributes to reducing emissions. When coffee is planted with other crops rather than alone, it also helps capture more carbon,” explains Marina Vilela, Embrapii’s coordinator for the project.
In the case of coffee specifically, studies conducted on farms in southern Minas Gerais have shown that production is carbon-negative, meaning that more carbon is captured than emitted. This indicates that producers already possess an asset that cannot yet be monetized due to the lack of calculation standards and an established carbon credit market.
Although international models exist to quantify carbon in agriculture, Mr. Melo notes they only work for large-scale farms, which are rare in Brazilian coffee production. “For an average producer, using foreign carbon project methodologies presents a high entry barrier and prohibitive costs,” he said.
The platform being developed will allow farms of all sizes to create carbon projects that meet international auditing standards. “The plan is to have the software ready for commercialization by the end of January 2025. Our goal is to secure a patent and then make it available to producers,” he adds.
According to Ms. Vilela, the platform is intended to function as an app, with properties monitored in real-time via satellite. Coffee cultivation currently spans approximately 1.8 million hectares, covering arabica and conilon varieties, and has the potential to capture about 15 million tonnes of carbon. This could represent up to R$1 billion in credits, although the calculation depends on multiple variables.
Beyond the methodology challenges specific to each crop, carbon market regulation is another hurdle. The bill addressing the regulation and trading of carbon credits is stalled in Congress. The version backed by the government, sponsored by Senator Leila Barros, was rejected in the Lower House, which had introduced an earlier version of the bill. Negotiations are underway to reach a consensus on a text that can move forward.
