Capital Markets and Other Financial Instruments

The report analyzes private climate finance for Brazil's land use sector, focusing on thematic bonds, CBIOs, and BNDES operations. It finds that bioenergy and biofuels are the primary recipients of these flows, though thematic bond issuance for land use declined sharply between 2021 and 2023. The BNDES remains a central actor through direct credit, blended finance pilots, and the management of the Amazon and Climate Funds.

• Of the tracked private climate finance from capital markets and other instruments, the bioenergy and biofuels sector was the dominant recipient, receiving 54% of the funds, which equates to US$ 1.9 billion per year.
• Thematic bonds mobilized US$ 2.5 billion per year for land use, representing 14% of tracked flows. However, issuance for land use dropped significantly from US$ 4.2 billion in 2021 (22% of national ESG bonds) to US$ 0.5 billion in 2023 (4% of thematic bonds), an 89% decrease over two years.
• CBIOs, the primary instrument of RENOVABIO, mobilized US$ 600 million per year from 2021 to 2023. The average value per CBIO rose from US$ 8 in 2021 to US$ 22 in 2023, contributing to the financing of 109 million tons of CO2 equivalent avoided between 2020 and 2023.
• BNDES direct and indirect operations provided an average of US$ 422 million per year in low-cost climate credit for land use, with 67% supporting the biofuel production chain and 30% directed toward planted forests (specifically eucalyptus at US$ 126 million per year).
• BNDES is expanding its role through blended finance and new mechanisms for native forests, including a 2022 blended finance pilot and the BNDES Forest Credits, which allocated R$ 1 billion (US$ 200 million) to stimulate private investment in native forests.

APA

Climate Policy Initiative (2024). Capital Markets and Other Financial Instruments. https://www.climatepolicyinitiative.org/capital-markets-and-other-financial-instruments-landscape-of-climate-finance-for-land-use-in-brazil-2021-2023/

Chicago

Climate Policy Initiative. Capital Markets and Other Financial Instruments. 2024. https://www.climatepolicyinitiative.org/capital-markets-and-other-financial-instruments-landscape-of-climate-finance-for-land-use-in-brazil-2021-2023/.

Wikipedia

{{cite report |author=Climate Policy Initiative |title=Capital Markets and Other Financial Instruments |date=7 November 2024 |url=https://www.climatepolicyinitiative.org/capital-markets-and-other-financial-instruments-landscape-of-climate-finance-for-land-use-in-brazil-2021-2023/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatepolicyinitiative2024capital, author = {{Climate Policy Initiative}}, title = {{Capital Markets and Other Financial Instruments}}, institution = {Climate Policy Initiative}, year = {2024}, month = nov, url = {https://www.climatepolicyinitiative.org/capital-markets-and-other-financial-instruments-landscape-of-climate-finance-for-land-use-in-brazil-2021-2023/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }