Greening Industry and Empowering Brazil: The IFC-Suzano Sustainable Forestry Model

In the vast landscapes of Brazil’s Mato Grosso do Sul, a quiet revolution is underway, led by a partnership between the International Finance Corporation (IFC) and Suzano S.A., with the support of key research and training institutions such as Embrapa (Brazilian Agricultural Research Corporation), SENAI (National Industrial Training Service), and MS Florestal. Together, they are building a model of green industrialization that advances climate goals, boosts local livelihoods, and champions inclusive development. At the heart of this transformation is the Cerrado Project , a state-of-the-art, fossil fuel-free pulp mill backed by a $950 million sustainability-linked loan, including $250 million in IFC financing. This bold initiative is helping Brazil stay on course to meet its nationally determined contributions under the Paris Agreement by reducing greenhouse gas emissions through reforestation, clean energy generation, and sustainable forestry practices.

A First-of-Its-Kind Eco-Efficient Mill

Constructed in Ribas do Rio Pardo, a municipality with just 25,000 residents and a poverty rate nearing 28%, the Cerrado Project represents a milestone in Latin America’s industrial history. It is the region’s first pulp mill to operate entirely without fossil fuels, producing up to 2.55 million tons of elemental chlorine-free pulp per year. The design incorporates advanced technologies that optimize biomass usage, resulting in a highly efficient and environmentally responsible production process. The mill’s recovery and biomass boilers are calibrated for higher steam pressure and temperature, allowing it to export 180 megawatts of surplus renewable electricity to Brazil’s national grid. The eucalyptus wood used as raw material is harvested from certified sustainable forests within a 65-kilometer radius, ensuring minimal transportation emissions and a well-managed forest footprint. By integrating clean energy generation into the manufacturing process, the project advances Brazil’s renewable energy agenda while setting new benchmarks for industrial sustainability.

Creating Jobs and Empowering Communities

The Cerrado Project’s economic impact is far-reaching. During construction, it generated 10,000 jobs, while another 45,000 were created through affiliated activities such as nursery operations, eucalyptus plantation development, and infrastructure build-out. Since operations began in the second half of 2024, the mill has provided 2,700 direct jobs and supported over 40,900 indirect jobs across the value chain. These jobs are not merely temporary or transactional; they are accompanied by long-term training and development. Suzano has invested in over 2 million hours of training for its employees, prioritizing local residents, women, and indigenous communities. The company aims to raise the proportion of women in leadership roles from 22.5% in 2021 to 30% by 2025, ensuring that gender inclusion is embedded in its growth strategy.

This emphasis on personal transformation is illustrated by workers like Sabrina Prado Benevenuto, a maintenance mechanic at the plant. Once employed in an ice cream shop, Sabrina enrolled in a technical mechanics course and eventually joined Suzano, where she found not just a job but a path to professional and personal growth. Her story reflects the deeper social mission of the project, to empower individuals with new skills and aspirations, turning small-town lives into engines of national development.

Building a Collaborative Labor Pipeline

Despite its success, the project faced challenges, particularly in attracting and retaining skilled labor in a region experiencing rapid industrialization. Over the last 15 years, manufacturing growth in Mato Grosso do Sul has strained the local labor market, creating fierce competition for workers, especially for field roles involving manual labor. In response, Suzano opted for an unconventional approach: collaboration over competition. In partnership with MS Florestal and SENAI, Suzano launched a technical training course in December 2024 to strengthen the regional forestry workforce. The course aims not just to plug short-term labor gaps, but to build a resilient talent pipeline that sustains long-term economic development in the sector. This spirit of collaboration reflects a vital lesson from the project: sustainable growth is most effective when companies, institutions, and communities work together to develop shared value chains.

From Trees to Corridors: Expanding the Vision

The Cerrado Project’s ambitions extend far beyond pulp production and employment figures. Building on their shared success, IFC and Suzano have entered into a new partnership to implement ecological corridors across the Cerrado biome. These corridors aim to reconnect 35,000 hectares of fragmented native vegetation in Mato Grosso do Sul, creating continuous habitats that support biodiversity and carbon sequestration. But the ecological vision doesn’t stop there. The partnership also promotes a socio-biodiversity chain by engaging local landowners in sustainable land practices. Efforts include encouraging enrollment in the Rural Environmental Registry, delivering training sessions, and designing financial incentive mechanisms for large-scale ecological restoration. These measures not only conserve Brazil’s unique ecosystems but also create economic opportunities for rural stakeholders, embedding sustainability into local livelihoods.

A Blueprint for Climate-Conscious Development

The IFC-Suzano Cerrado Project offers a compelling narrative of what sustainable development can look like in the 21st century. It harmonizes climate mitigation, industrial efficiency, and inclusive socioeconomic development. With its emphasis on responsible forestry, clean energy, community empowerment, and ecological restoration, the project stands as a replicable model for countries seeking to meet their climate goals without sacrificing growth. It’s a story rooted in Brazil’s soil but rich with global relevance, one where trees become symbols not just of environmental stewardship, but of opportunity, dignity, and shared prosperity