Following the Money: Financing Bioeconomy in Brazil

This report by the Climate Policy Initiative/Pontifical Catholic University of Rio de Janeiro (CPI/PUC-RIO) analyzes financial flows for the bioeconomy in Brazil between 2021 and 2023. It finds that while total finance averaged US$ 3.213 billion per year, the vast majority is concentrated in the planted forest and bioenergy sectors, leaving biodiversity-based products and native forests significantly underfunded.

• Between 2021 and 2023, annual finance for the bioeconomy in Brazil averaged US$ 3.213 billion. The majority of this funding—74% or US$ 2.391 billion per year—was directed toward the bioenergy and biofuels and planted forest sectors.
• The planted forest sector received 40% of total bioeconomy finance (US$ 1.289 billion/year), with a heavy focus on eucalyptus. A single company, Suzano, accounted for 71% of this funding through BNDES investment and three thematic bonds.
• Bioenergy and biofuels received 34% of bioeconomy finance (US$ 1.101 billion/year). The vast majority of this (87%) came from thematic bonds and Decarbonization Credits (CBIOs), while BNDES contributed 13%.
• Finance for biodiversity-based products, family farming, and native forests is relatively low. Biodiversity products received US$ 0.280 billion/year (9%), family farming received US$ 0.267 billion/year (8%), and native forests received US$ 0.178 billion/year (6%).
• Domestic sources provided 96% of bioeconomy finance (US$ 3.102 billion/year), with private sources accounting for 69% (US$ 2.196 billion/year). International sources provided 4% (US$ 0.111 billion/year), primarily through donations and low-cost credit from Germany (43%) and Norway (34%).
• Thematic bonds were the primary financial instrument, raising US$ 1.198 billion/year (38%), followed by rural credit at US$ 0.754 billion/year (23%). CBIOs mobilized US$ 0.600 billion/year (18%).
• Finance for biodiversity products via rural credit is extremely low compared to industrial crops. While soy received US$ 16.4 billion/year, biodiversity products received only US$ 0.3 billion/year. Among biodiversity products, cassava received the most finance (US$ 337 million/year), followed by cocoa, rubber trees, and açaí.
• Geographically, the Southern region received the most finance for biodiversity products (30%), followed by the Northeast (26%) and Southeast (21%). Despite its importance, the Northern region received only 12% of this finance.

APA

Climate Policy Initiative (2024). Following the Money: Financing Bioeconomy in Brazil. https://www.climatepolicyinitiative.org/publication/following-the-money-financing-bioeconomy-in-brazil/

Chicago

Climate Policy Initiative. Following the Money: Financing Bioeconomy in Brazil. 2024. https://www.climatepolicyinitiative.org/publication/following-the-money-financing-bioeconomy-in-brazil/.

Wikipedia

{{cite report |author=Climate Policy Initiative |title=Following the Money: Financing Bioeconomy in Brazil |date=12 September 2024 |url=https://www.climatepolicyinitiative.org/publication/following-the-money-financing-bioeconomy-in-brazil/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatepolicyinitiative2024following, author = {{Climate Policy Initiative}}, title = {{Following the Money: Financing Bioeconomy in Brazil}}, institution = {Climate Policy Initiative}, year = {2024}, month = sep, url = {https://www.climatepolicyinitiative.org/publication/following-the-money-financing-bioeconomy-in-brazil/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }