Agriculture Sustainable Finance State of the Market

The Brazilian sustainable debt market has grown to a cumulative USD 10.8bn, with green bonds dominating at 84% of the market. Land use is a primary driver of this growth, representing 67% of total volume across green, sustainability, sustainability-linked, and transition labels. Forestry is the leading agriculture-related theme with USD 6.4bn in funding, followed by agriculture (USD 848m) and bioenergy (USD 832m). While non-financial corporates lead issuances, financial institutions and government-backed entities are increasingly entering the market. The document highlights the emergence of performance-linked instruments like Sustainability-Linked Bonds (SLBs) and transition bonds, though it notes concerns regarding transparency and the need for science-based transition pathways to avoid greenwashing.

• Brazil's sustainable debt market has experienced exponential growth over seven years, reaching a cumulative total of USD 10.8bn across green, social, and sustainability labels.
• Green bonds are the dominant instrument in Brazil's sustainable debt market, accounting for 84% of the total and growing from USD 564m in 2015 to USD 9bn, making Brazil the largest green bond market in Latin America.
• Land use is the most significant category for sustainable finance in Brazil, representing 67% of the total volume issued across green, sustainability, sustainability-linked, and transition labels.
• Forestry is the largest theme within the sustainable agriculture finance universe, totaling USD 6.4bn, with pulp and paper companies like Suzano and Klabin as the primary issuers.
• Bioenergy represents the second largest investment category at USD 832m, with FS Bioenergia as the main issuer; the sector is seen as vital for decarbonizing Brazil's transport sector where 78% of light-duty vehicles are flex-fuel.
• Dedicated agriculture issuances are still in the early stages, totaling USD 848m since August 2020, with Rizoma Agro issuing the first certified green CRA under the Climate Bonds Standard Agriculture Criteria globally.
• The livestock sector has seen limited but diverse labelling, totaling USD 530m, primarily through Marfrig's use of sustainable transition bonds and sustainability-linked loans to address deforestation in supply chains.
• Sustainability-linked bonds (SLBs) and loans (SLLs) have grown to USD 5bn in volume, offering issuers more flexibility by tying interest rates to KPIs rather than specific project pools, though they suffer from a lack of transparency and external reviews.
• Transition bonds remain a modest part of the market, with USD 669m issued, including a benchmark USD 500m bond by Marfrig; the document argues that credible transition bonds must be science-based and aligned with a 1.5°C trajectory.
• Financial institutions in Brazil have issued USD 1bn in labelled debt, acting as both issuers and structuring agents to fund portfolios in forestry, bioenergy, and agriculture.

APA

Souza, L. (2021). Agriculture Sustainable Finance State of the Market. Climate Bonds Initiative. https://www.climatebonds.net/files/documents/publications/cbi-brazil-agri-sotm-eng.pdf

Chicago

Souza, Leisa. Agriculture Sustainable Finance State of the Market. Climate Bonds Initiative, 2021. https://www.climatebonds.net/files/documents/publications/cbi-brazil-agri-sotm-eng.pdf.

Wikipedia

{{cite report |last1=Souza |first1=Leisa |title=Agriculture Sustainable Finance State of the Market |publisher=Climate Bonds Initiative |date=June 2021 |url=https://www.climatebonds.net/files/documents/publications/cbi-brazil-agri-sotm-eng.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{souza2021agriculture, author = {Souza, Leisa}, title = {{Agriculture Sustainable Finance State of the Market}}, institution = {Climate Bonds Initiative}, year = {2021}, month = jun, url = {https://www.climatebonds.net/files/documents/publications/cbi-brazil-agri-sotm-eng.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }