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📬 What’s Inside This Month’s Edition

• 🎯 Do You Have What It Takes to Lead in Sustainability? Test your knowledge and see how you score.
• 📈 Coffee Climbs, Cotton Crumbles, and Climate Pressures Agriculture - This month's Industry Roundup
• 💡 Deep Dive: COP29’s Key Outcomes and Opportunities
• 🔍 Visual Spotlight: How Deforestation Impacts Crop Yields
• 🌍 Brazil’s Carbon Revolution: SBCE Opportunities and Impacts — Discover what the new greenhouse gas regulation means for businesses and how to unlock its potential.

Do You Have What It Takes to Lead in 2025? 🤔

As we wrap up 2024, it’s time to test your sustainability expertise and get ready for the challenges ahead.

Take Marvin’s quick Sustainability Leadership Quiz and see: 🧠 How you score compared to other leaders. 🏆 Whether you can beat the community average of 7/10. ✨ Actionable insights to sharpen your strategy for 2025.

👉 Click here to take the quiz and share your score on LinkedIn

Finish 2024 on a high note and step confidently into 2025! 🌟

Coffee Climbs, Cotton Crumbles, and EUDR is Delayed but Unchanged

• 1️⃣ EUDR: Delayed but Not Diluted - The EUDR deadline has been pushed to 2025, but proposed "no-risk" country categories were axed. Brace yourselves: the regulation is coming in full force, just a year later.
• 2️⃣ Hurricane Helene Devastates U.S. Cotton - U.S. cotton yields are expected to hit a decade low after Hurricane Helene destroyed over 32% of Georgia's cotton crop, causing $560 million in damages. Nationwide, cotton production is projected at just 14.2 million bales, the second smallest crop since 2015-16.
• 3️⃣ Coffee Prices Surge to 50-Year Highs - Global coffee prices hit $3.36 per pound - the highest since 1977 - due to droughts and heavy rains slashing yields in Brazil and Vietnam. Brazil's arabic output is expected to drop 10.5% next year, while Vietnam's robusta crop could shrink by 10%, driving stockpiles to historic lows. Meanwhile, traders are grappling with crippling hedging costs, forcing some into debt restructuring as future prices spike.

🌍 Brazil’s Carbon Revolution: SBCE Opportunities and Impacts

The Brazilian Greenhouse Gas Emissions Trading System (SBCE) establishes a regulated carbon market, adopting a cap-and-trade model similar to those in the EU and California. This step aligns Brazil’s commitments under the Paris Agreement, offering businesses new opportunities to align with global sustainability standards

🇧🇷⏳ SBCE: The Gist in 2 Minutes or Less

Who is Regulated—and Who Isn’t?

• Regulated Entities: The SBCE applies to operators of facilities emitting over 25,000 metric tons of CO₂e annually, with mandatory reporting and reconciliation obligations. Industries like energy, manufacturing, and transportation are likely to fall under regulation based on their high emissions profiles
• Exempt Sectors: Primary agricultural production is explicitly excluded from direct regulation. However, agriculture and land-based industries can still generate carbon credits by preserving forests, restoring degraded areas, or implementing sustainable land management. These actions offer a financial incentive to participate in voluntary or jurisdictional carbon markets without being subject to emission caps.

Carbon Credit Regulation

• The SBCE allows the generation of verified carbon credits (CRVEs) and Brazilian Emissions Quotas (CBEs), representing tradable rights to reduce or offset emissions. These credits incentivize sustainable practices like reforestation, carbon retention, and recycling. Marvin’s tools streamline credit optimization and compliance to ensure businesses maximize these financial benefits.

REDD+ Integration

• The SBCE integrates jurisdictional REDD+ programs, allowing for the generation of credits from large-scale deforestation reduction and forest enhancement projects. These programs align with both national and international methodologies, enabling businesses to participate in the global carbon market while supporting forest conservation.

Potential Fines

• Entities emitting over 25,000 metric tons annually must submit periodic monitoring reports, with penalties for non-compliance ranging from 3–4% of gross revenue to fines between R$50,000 and R$20 million.

Global Market Alignment

• By adopting internationally recognized standards, such as the Verified Carbon Standard (VCS), SBCE credits are now eligible for trade in global markets, increasing access to international funding and competitiveness in sustainability-driven export markets.

🗺️ From Policy to Profit: Why It Matters Brazil’s SBCE highlights the country’s role as the global leader of sustainable commodities. For businesses, this creates new revenue streams and competitive advantages in carbon markets while signaling to global partners a commitment to a greener future.

🚦 Green Lights Ahead: How Marvin Simplifies SBCE Marvin empowers businesses to navigate this evolving landscape with precision. From emissions tracking to REDD+ compliance, we make sustainability actionable, helping you turn complex regulations into opportunities for growth, resilience, and profit.

👉 Understand how SBCE can work for you.

COP29 – What It Means for Your Business 🤔

COP29 in Baku wrapped up with some big promises, a few delays, and plenty of “to be continued” moments. Here’s what went down and why it matters for you:

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🌍 $300 Billion for Climate Finance – But Is It Enough?

Developed nations pledged $300 billion annually by 2035 to help developing countries fight the climate crisis. While it’s a step up from the previous $100 billion goal, critics argue it’s far from the $1.3 trillion needed. A broader “Baku to Belém Roadmap” aims to mobilize even more private investment, but details are still fuzzy.

📈 Global Carbon Markets Are Officially Open for Business

After nearly a decade of talks, COP29 finally delivered rules for a global carbon market under Article 6. Starting in 2025, countries can trade carbon credits, creating new opportunities for emissions reduction projects. However, concerns remain about transparency and ensuring these markets deliver real climate benefits.

🐌 Progress on Fossil Fuels and Renewables Slows

Efforts to phase out fossil fuels and triple renewable energy capacity by 2030 hit a roadblock, with resistance from oil-producing nations. Key targets were deferred to COP30, leaving ambitious climate goals hanging in the balance. The takeaway? Businesses can’t afford to wait for global consensus—proactive adaptation and innovation are the way forward.

💡 What This Means for Agribusiness

1. 💡Carbon Market Opportunities: The new global carbon market offers fresh opportunities for agribusinesses to monetize sustainable practices. Initiatives like regenerative farming, methane reduction, or carbon sequestration can now generate real financial returns.
2. 🏦 Access to Climate Finance: With $300 billion in annual funding on the table, agribusinesses have a chance to secure financing for renewable energy systems, water management infrastructure, and sustainable practices. This is a golden moment to invest in your future.
3. 📅 Prepare for Climate Adaptation: Delays in global adaptation talks mean businesses need to take the lead. Invest in resilient infrastructure, climate-smart crops, and risk management strategies now to stay ahead of climate disruptions.

🚀 Ready to Act on COP29 Lessons?

Don’t wait for the next conference to make a difference. Partner with Marvin to unlock opportunities in carbon markets, secure climate financing, and build a resilient, profitable future.

🪵 Deforestation is Costing Brazilian Farmers Millions

The graphic above (Source: Economist) reveals the harsh realities of how deforestation in the Brazilian Amazon—particularly in Pará—has impacted not only the environment but also farmers' profitability. A joint study by the Federal University of Minas Gerais (UFMG) and Rainforest Foundation Norway (RFN) shows that deforestation has cost farmers $1 billion in crop losses between 2006 and 2019.

The Ripple Effects of Forest Loss

Deforestation may create short-term gains, but its long-term costs are undeniable. Here’s what the study uncovered:

• Plummeting Revenues: Soyabean net revenues dropped by 10% and maize by 20% due to lower yields caused by delayed rain and rising temperatures.
• Disrupted Water Cycles: In heavily deforested areas (over 80% cleared), the rainy season has been delayed by 76 days since 1980, while rainfall during crop seasons has fallen by 40% for soybeans and 23% for maize.
• Soaring Heat: Maximum air temperatures have risen by 2.5°C, creating harsher conditions for crops and straining already stressed water resources.

What This Means for Agribusiness

1. The Need for Climate Adaptation is Clear As water cycles become less predictable, businesses will need solutions that can provide agribusinesses with real-time water usage and availability metrics. Competitive business will need to make informed decisions to optimize irrigation, protect crops, and meet rigorous sustainability standards.
2. Invest in Reforestation and Resilience The study finds that reforesting 55,000 km² in Pará could bring the rainy season up to 19 days earlier and add 152mm of annual precipitation, directly benefiting the entire region's yields. Sustainable practices aren’t just good for the planet—they’re a smart investment for long-term profitability.
3. Stay Ahead of Changing Conditions Deforestation doesn’t just harm biodiversity—it’s directly impacting the agricultural supply chain. By leveraging Marvin’s data-driven insights, agribusinesses can adapt to changing climates and ensure environmentally responsible production.

With Marvin's Hydro solution, agribusinesses gain access to real-time water availability and water usage modeling, ensuring operations remain both financially productive and environmentally positive.

These tools empower decision-makers to balance resource efficiency with long-term climate adaptation strategies, helping businesses thrive even as conditions become more challenging.

Britaldo Soares-Filho, the study’s lead author, offers a clear message: “They say we’re guilty of agri-phobia, but they’re committing agri-suicide.” With tools like Marvin’s Hydro, businesses can chart a sustainable path forward, protecting both the environment and their bottom line.

👉 Learn How to Build Resilient Land Operations

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🎄 Wishing You a Joyful Holiday Season and an Inspiring 2025 🎇

Thank you to our amazing partners across the global agribusiness industry, friends in the climate resilience ecosystem, and everyone following along on the Marvin journey.

Your support and collaboration mean the world to us, and we’re thrilled about the incredible things we have in store for the start of 2025 —we can’t wait to share them with you 😎

From all of us at Marvin, we wish you a joyous holiday season and a New Year filled with growth, resilience, and opportunity. 🌟

See you in 2025!

-The Marvin Team

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