Landscape of Climate Finance for Land Use in Brazil

This report by the Climate Policy Initiative (CPI) and the Pontifical Catholic University of Rio de Janeiro (CPI/PUC-Rio) quantifies and characterizes climate finance flows for land use in Brazil from 2015 to 2020. It establishes a baseline for financial flows directed toward agriculture and forests, analyzing sources, disbursement channels, and climate objectives to identify gaps and increase transparency in the transition to a low-carbon economy.

• Between 2015 and 2020, climate finance for land use in Brazil averaged US$ 6.6 billion per year. While the US dollar value grew from US$ 6.6 billion in 2015 to US$ 7.1 billion in 2020, this represents a 65% increase when measured in Brazilian reais.
• Domestic sources provided the vast majority of climate finance, accounting for 95% (US$ 6.3 billion/year). Of this domestic funding, two-thirds (US$ 4.1 billion/year) was private finance, largely driven by public policy obligations requiring financial institutions to allocate funds to rural credit.
• International finance represented 5% (US$ 327 million/year) of the total flows and was primarily public, consisting of contributions from 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 primary financial instrument, channeling US$ 3.2 billion/year (48% of total flows). However, climate-aligned flows constitute 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%). Other recipients included 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 activities at US$ 86 million/year (1%).
• Finance was primarily directed toward mitigation, which received US$ 4.5 billion/year (68%). Adaptation activities received US$ 1.2 billion/year (19%), and 13% (US$ 859 million/year) of flows targeted both mitigation and adaptation.
• Thematic bonds raised an average of US$ 1 billion/year (16%), with volumes increasing from US$ 685 million in 2015 to US$ 1.6 billion in 2020. The public budget provided US$ 767 million/year (11%), serving as the primary instrument for the forest sector (US$ 572 million/year), although public budget finance dropped 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} }