Agriculture Sustainable Finance State of the Market 2023

This briefing paper by the Climate Bonds Initiative analyzes the state of sustainable finance in Brazil's agricultural sector as of June 2023. It details the growth of the Green, Social, Sustainability, and Transition (GSS+) debt market, the specific use of proceeds for forestry, agriculture, livestock, and bioenergy, and the role of national policies and international regulations in driving decarbonization.

• By the end of the first half of 2023, Brazil's sustainable debt market (GSS+) reached a cumulative volume of USD 33.3 billion, making it the third largest in the Latin America and the Caribbean (LAC) region, trailing Chile and Mexico.
• Green bonds are the dominant theme in Brazil's GSS+ market, accounting for 45.2% of the cumulative total (USD 15.1 billion). Within this category, Renewable Energy (56%) and Land Use (20%) are the most funded use of proceeds (UoP).
• Forestry is the largest segment of the Land Use UoP in Brazil, with a cumulative volume of USD 5.6 billion. Most proceeds are used for sustainable forest management and the refinancing of paper and pulp production.
• Sustainable finance for bioenergy has seen significant growth, reaching a cumulative volume of USD 2.2 billion, which represents a 288% increase since the 2021 briefing. This includes USD 2.1 billion under green labels and USD 150 million under sustainability labels.
• Brazil leads the LAC region in sustainability-linked bonds (SLBs) with a cumulative volume of USD 10.9 billion (or USD 12 billion as cited in the SLB section). Non-financial corporate issuers dominate this segment, with 50% of KPIs targeting greenhouse gas (GHG) emissions.
• The Brazilian government is developing a national sustainable finance taxonomy, with discussions starting in 2022 and a final version expected in 2024, becoming mandatory by January 2026.
• Agriculture and livestock production, along with land use change, are primary drivers of Brazil's emissions; in 2021, land use change accounted for 49% of GHG emissions and agriculture/livestock for 25%.

APA

Borges, S., Burge, L., & Gava, L. (2023). Agriculture Sustainable Finance State of the Market 2023. Climate Bonds Initiative. https://www.climatebonds.net/files/documents/publications/cbi_brazil_agrisotm_23.pdf

Chicago

Borges, Sofia, Lily Burge, and Leonardo Gava. Agriculture Sustainable Finance State of the Market 2023. Climate Bonds Initiative, 2023. https://www.climatebonds.net/files/documents/publications/cbi_brazil_agrisotm_23.pdf.

Wikipedia

{{cite report |last1=Borges |first1=Sofia |last2=Burge |first2=Lily |last3=Gava |first3=Leonardo |title=Agriculture Sustainable Finance State of the Market 2023 |publisher=Climate Bonds Initiative |date=October 2023 |url=https://www.climatebonds.net/files/documents/publications/cbi_brazil_agrisotm_23.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{borges2023agriculture, author = {Borges, Sofia and Burge, Lily and Gava, Leonardo}, title = {{Agriculture Sustainable Finance State of the Market 2023}}, institution = {Climate Bonds Initiative}, year = {2023}, month = oct, url = {https://www.climatebonds.net/files/documents/publications/cbi_brazil_agrisotm_23.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }