Landscape of Climate Finance for Land Use in Brazil

Between 2015 and 2020, climate finance for land use in Brazil averaged US$ 6.6 billion per year, dominated by domestic private finance and rural credit. While the crop sector was the primary recipient, the report highlights a significant gap in the proportion of total rural credit that is climate-aligned and notes a decline in public budget allocations for the forest sector.

• Climate finance for land use in Brazil averaged US$ 6.6 billion annually from 2015 to 2020, with total flows increasing from US$ 6.6 billion in 2015 to US$ 7.1 billion in 2020, representing a 65% growth in Brazilian reais.
• Domestic sources provided 95% of climate finance (US$ 6.3 billion/year), with two-thirds of that (US$ 4.1 billion/year) coming from private finance, often driven by public policy obligations requiring financial institutions to allocate funds to rural credit.
• International finance accounted for 5% of flows (US$ 327 million/year), primarily from public sources such as foreign governments, climate funds, and multilateral development banks. The Amazon Fund is the primary climate fund for international finance in Brazil, though its average annual approval of US$ 53 million represents only 0.7% of total land-use climate finance.
• Rural credit is the dominant financial instrument, channeling US$ 3.2 billion/year (48% of tracked flows). However, climate-aligned flows represent only 8% of the total annual average rural credit volume of US$ 42.2 billion.
• The crop sector was the largest recipient of climate finance, receiving US$ 3.9 billion/year (60%), followed by the forest sector at US$ 1.7 billion/year (25%), cattle at US$ 532 million/year (8%), bioenergy and fuels at US$ 311 million/year (5%), and multi-sector at US$ 86 million/year (1%).
• Finance for mitigation was the primary objective at US$ 4.5 billion/year (68%), while adaptation received US$ 1.2 billion/year (19%), and dual-objective flows totaled US$ 859 million/year (13%).
• Thematic bonds raised an average of US$ 1 billion/year (16%) and grew from US$ 685 million in 2015 to US$ 1.6 billion in 2020, though they remain a small part of fixed-income capital markets.
• Public budget allocations for climate-aligned finance averaged US$ 767 million/year (11%) and were the primary tool for the forest sector (US$ 572 million/year), but experienced a decline from US$ 993 million in 2015 to US$ 394 million in 2020.

APA

Climate Policy Initiative (2023). Landscape of Climate Finance for Land Use in Brazil. https://www.climatepolicyinitiative.org/publication/landscape-of-climate-finance-for-land-use-in-brazil/

Chicago

Climate Policy Initiative. Landscape of Climate Finance for Land Use in Brazil. 2023. https://www.climatepolicyinitiative.org/publication/landscape-of-climate-finance-for-land-use-in-brazil/.

Wikipedia

{{cite report |author=Climate Policy Initiative |title=Landscape of Climate Finance for Land Use in Brazil |date=18 September 2023 |url=https://www.climatepolicyinitiative.org/publication/landscape-of-climate-finance-for-land-use-in-brazil/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatepolicyinitiative2023landscape, author = {{Climate Policy Initiative}}, title = {{Landscape of Climate Finance for Land Use in Brazil}}, institution = {Climate Policy Initiative}, year = {2023}, month = sep, url = {https://www.climatepolicyinitiative.org/publication/landscape-of-climate-finance-for-land-use-in-brazil/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }