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Researchers from Climate Policy Initiative/Pontifical Catholic University of Rio de Janeiro (CPI/PUC-Rio) show that the construction of the Ferrogrão railroad will induce farmers and ranchers located in the state of Mato Grosso to expand their production, increasing land demand. If no mitigation measures are implemented, this will lead to the clearing of about 2,043 square kilometers of native vegetation in almost forty municipalities of the state of Mato Grosso. Considering a price of US$ 25/tCO2e, the carbon emissions associated with this deforestation have a cost of approximately US$ 1.9 billion. This environmental cost alone corresponds to roughly 60% of Ferrogrão’s implementation cost.

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