Brazil Sustainable Debt State of the Market Report H1 2025

The report details Brazil's GSS+ debt market, which reached USD 67.8bn in cumulative volume by June 2025, with a strong emphasis on green bonds and corporate issuance. It highlights the role of the upcoming Brazilian Sustainable Taxonomy (BST) and the government's Sovereign Sustainable Bond Framework in driving market growth. Key sectors for investment include renewable energy, sustainable agriculture (AFOLU), and water sanitation, while noting a significant investment gap of USD 200bn to meet 2030 transition targets.

• As of June 30, 2025, Brazil's cumulative GSS+ volume reached USD 67.8bn, with USD 49.3bn (73%) aligned with Climate Bonds screening methodologies.
• Brazil is the largest issuer of green bonds in the Latin America and Caribbean (LAC) region, with a cumulative aligned volume of USD 30bn, surpassing Chile (USD 15.6bn) and Mexico (USD 6.5bn).
• Non-financial corporations are the primary drivers of the market, accounting for 67% of cumulative aligned GSS+ volume, with the energy sector (specifically renewables) and utilities being major contributors.
• The Brazilian government has introduced sovereign sustainable debt, issuing two bonds in 2023 and 2024 totaling USD 4bn under its Sovereign Sustainable Bond Framework.
• The alignment rate for sustainability-linked bonds (SLBs) in Brazil is very low at 10%, primarily because issuers omit greenhouse gas (GHG) targets when setting key performance indicators.
• The Brazilian Sustainable Taxonomy (BST), expected in the second half of 2025, will introduce a novel approach by incorporating both environmental/climate and socioeconomic objectives.
• Brazil faces a significant investment gap, with an estimated USD 200bn required to achieve its national transition targets by 2030.
• The water and sewage sector is a major growth area, with the 2020 Sanitation Legal Framework targeting universal access by 2033, which is expected to mobilize up to BRL 700bn (USD 132bn) in investment.
• Currency preference in the GSS+ market is split, with BRL accounting for 51% of total aligned volume, though USD remains dominant for social and sustainability-linked bonds.
• The Eco Invest Brasil initiative uses blended-finance structures to attract foreign private capital by mitigating risks such as foreign-exchange volatility.

APA

Climate Bonds Initiative (2025). Brazil Sustainable Debt State of the Market Report H1 2025. https://www.climatebonds.net/files/documents/publications/Brazil_Sustainable_Debt_H1_2025_02A.pdf

Chicago

Climate Bonds Initiative. Brazil Sustainable Debt State of the Market Report H1 2025. 2025. https://www.climatebonds.net/files/documents/publications/Brazil_Sustainable_Debt_H1_2025_02A.pdf.

Wikipedia

{{cite report |author=Climate Bonds Initiative |title=Brazil Sustainable Debt State of the Market Report H1 2025 |date=2025 |url=https://www.climatebonds.net/files/documents/publications/Brazil_Sustainable_Debt_H1_2025_02A.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatebondsinitiative2025brazil, author = {{Climate Bonds Initiative}}, title = {{Brazil Sustainable Debt State of the Market Report H1 2025}}, institution = {Climate Bonds Initiative}, year = {2025}, url = {https://www.climatebonds.net/files/documents/publications/Brazil_Sustainable_Debt_H1_2025_02A.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }