A system lock-in blocks the uptake of mixed sustainable Eucalyptus plantations in Brazil

Forest plantation areas across the globe are increasing in size and in 2019 Eucalyptus monocultures in Brazil covered 6.97 million hectares (0.8%). These monocultures hardly provide ecosystem services and do not support wildlife habitats. A transition towards more sustainable Eucalyptus plantations is urgently needed to support the provisioning of ecosystem services and conserve biodiversity. This transition requires the development of sustainable business models. We studied the upscaling of sustainable Eucalyptus plantation alternatives in Brazil, by analysing the potential barriers that need to be overcome using the Technological Innovation Systems perspective and semi-structured interviews of relevant stakeholders across the Eucalyptus value chain. Although the provisioning of ecosystem services is improved by alternative plantation management, we identified four blocking mechanisms that inhibit the functioning of the innovation system and as such hamper upscaling; 1) the productivist approach by incumbent actors on plantation management that is focussing only on short-term profit maximisation and results in a strong resistance to change current practices, 2) the weak societal and governmental vision that does not put sufficient pressure to change practices, 3) additional certification to support alternatives is in its infacy to develop niche markets which also hampers the development of financial support, and 4) failed demonstration projects in the past that have led to a lack of proof of concept for further experimentation and knowledge development. These barriers combined lead to a system lock-in, resistant to change and not capable for a diffusion of sustainable alternatives. We conclude that the directionality of a sustainability transformation should be enhanced by formulating long-term goals and strong commitment of public and private actors. We discuss how a mission oriented approach could foster such directionality for the urgently needed regime transformation in Eucalyptus paper and pulp production.