Opportunities for Climate Finance: Landscape of Climate Finance for Land Use in Brazil 2021-2023

This report by the Climate Policy Initiative analyzes the landscape of climate finance for land use in Brazil from 2021 to 2023. It identifies rural credit as the primary source of funding but highlights significant gaps in sustainability verification and monitoring. The document outlines the roles of agriculture risk management, government spending, capital markets, and international cooperation, providing recommendations to improve transparency, align socio-environmental criteria, and leverage private investment to meet climate targets.

• Rural credit is the primary source of climate finance for land use in Brazil, averaging US$ 9.9 billion annually, though it suffers from limited sustainability verification due to a reliance on self-reported data.
• Agriculture risk management instruments averaged US$ 2.6 billion per year and served as the primary mechanism for climate adaptation and loss and damage payments, marking a 123% increase compared to 2015-2020 data.
• Federal public budget expenditure for land use with climate objectives averaged US$ 561 million per year between 2021 and 2023, representing 3% of total tracked flows; while spending grew by 47% to reach US$ 680 million in 2023, it remains insufficient for an effective climate policy.
• Thematic bonds averaged US$ 2.5 billion per year in climate finance for land use, but experienced a sharp decline from a peak of US$ 4.2 billion in 2021 to only US$ 0.5 billion in 2023 due to high costs and labeling time.
• International development and cooperation provided an average of US$ 542 million per year for land use in Brazil (3% of climate-aligned flows), with Multilateral Development Banks (MDBs) contributing 61% and international governments contributing 29%.
• The Amazon Fund resumed activities in 2023 after a hiatus from 2019-2022, initially allocating US$ 26 million to five projects, with a subsequent announcement of R$ 3.8 billion (US$ 771 million) in grants.
• CBIOs, established under RENOVABIO to finance the biofuels sector, generated US$ 0.6 billion per year, although they have faced criticism regarding their price volatility, structure, and governance.

APA

Climate Policy Initiative (2024). Opportunities for Climate Finance: Landscape of Climate Finance for Land Use in Brazil 2021-2023. https://www.climatepolicyinitiative.org/opportunities-for-climate-finance-landscape-of-climate-finance-for-land-use-in-brazil-2021-2023/

Chicago

Climate Policy Initiative. Opportunities for Climate Finance: Landscape of Climate Finance for Land Use in Brazil 2021-2023. 2024. https://www.climatepolicyinitiative.org/opportunities-for-climate-finance-landscape-of-climate-finance-for-land-use-in-brazil-2021-2023/.

Wikipedia

{{cite report |author=Climate Policy Initiative |title=Opportunities for Climate Finance: Landscape of Climate Finance for Land Use in Brazil 2021-2023 |date=7 November 2024 |url=https://www.climatepolicyinitiative.org/opportunities-for-climate-finance-landscape-of-climate-finance-for-land-use-in-brazil-2021-2023/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatepolicyinitiative2024opportunities, author = {{Climate Policy Initiative}}, title = {{Opportunities for Climate Finance: Landscape of Climate Finance for Land Use in Brazil 2021-2023}}, institution = {Climate Policy Initiative}, year = {2024}, month = nov, url = {https://www.climatepolicyinitiative.org/opportunities-for-climate-finance-landscape-of-climate-finance-for-land-use-in-brazil-2021-2023/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }