This paper presents the results of the EX-Ante Carbon-balance Tool (EX-ACT) application on two rural development projects in Brazil. The analysis provides an estimate of project impact on GHG emissions and C sequestration indicating net mitigation potential: results show that the Santa Catarina Rural Competitiveness Project has the potential to mitigate 12.2 Mt CO(2)e and the Rio de Janeiro Sustainable Rural Development Project 0.85 Mt CO(2)e. Both projects are successful at promoting activities aimed at reducing rural poverty and also contribute to climate change mitigation, demonstrating the potential importance of sustainable agriculture (improved cropland and grassland management, expansion of agro-forestry systems and protection of forested areas) in delivering environmental services. EX-ACT has also been used as a tool to guide project developers in refining components and activities to increase project environmental benefits. Cost-benefit analysis shows that while both projects generate environmental benefits associated with climate change mitigation, the Santa Catarina Rural Competitiveness Project has significantly higher potential due to the size of the project area and the nature of activities, thus a higher likelihood of potential co-financing from climate finance sources.
