Following the Money: Financing Bioeconomy in Brazil

This report by the Climate Policy Initiative (CPI/PUC-RIO) analyzes financial flows disbursed to the bioeconomy in Brazil between 2021 and 2023. It identifies a heavy concentration of funding in the planted forest and bioenergy sectors, driven largely by private domestic sources and innovative financial instruments, while highlighting a significant funding gap for biodiversity products and the native forest sector.

• Between 2021 and 2023, annual average finance for the bioeconomy in Brazil was US$ 3.213 billion. The vast majority of this funding was concentrated in two sectors: planted forests (40%, or US$ 1.289 billion/year) and bioenergy and biofuels (34%, or US$ 1.101 billion/year), which together accounted for 74% of the total tracked finance.
• Funding for the planted forest sector is highly concentrated, with a single company, Suzano, responsible for 71% of the US$ 1.289 billion/year allocated to that sector through BNDES investment and three thematic bonds.
• Domestic sources provided 96% of bioeconomy finance (US$ 3.102 billion/year). While 69% of this came from private sources, public policies directed 31% of the total tracked finance through mechanisms such as CBIOs and private rural credit.
• International finance represented only 4% of the total (US$ 0.111 billion/year), primarily consisting of donations and low-cost credit from international climate funds and the governments of Germany (43%) and Norway (34%). These flows were the primary funding source for the native forest sector.
• Thematic bonds and Decarbonization Credits (CBIOs) are the dominant financial instruments, accounting for 56% of bioeconomy finance, but their use is restricted to the bioenergy, biofuels, and planted forest sectors. Thematic bonds alone raised US$ 1.198 billion/year (38%).
• There is a stark disparity in rural credit allocation between traditional commodities and biodiversity products. While soy received US$ 16.4 billion/year, biodiversity products received only US$ 0.3 billion/year, representing just 2% of the amount channeled to soy.
• Regional distribution of finance for biodiversity products is uneven. The South received the most (30%), followed by the Northeast (26%) and Southeast (21%). Despite its ecological importance, the North region received only 12% of the finance, with the Brazil nut receiving only US$ 3.5 million/year.

APA

Chiavari, J., Motta, M., Lopes, C. L., & Corleto, A. F. (2024). Following the Money: Financing Bioeconomy in Brazil. Climate Policy Initiative. https://www.climatepolicyinitiative.org/wp-content/uploads/2024/09/Financing-Bioeconomy-in-Brazil.pdf

Chicago

Chiavari, Joana, Miguel Motta, Cristina Leme Lopes, and Ana Flávia Corleto. Following the Money: Financing Bioeconomy in Brazil. Climate Policy Initiative, 2024. https://www.climatepolicyinitiative.org/wp-content/uploads/2024/09/Financing-Bioeconomy-in-Brazil.pdf.

Wikipedia

{{cite report |last1=Chiavari |first1=Joana |last2=Motta |first2=Miguel |last3=Lopes |first3=Cristina Leme |last4=Corleto |first4=Ana Flávia |title=Following the Money: Financing Bioeconomy in Brazil |publisher=Climate Policy Initiative |date=September 2024 |url=https://www.climatepolicyinitiative.org/wp-content/uploads/2024/09/Financing-Bioeconomy-in-Brazil.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{chiavari2024following, author = {Chiavari, Joana and Motta, Miguel and Lopes, Cristina Leme and Corleto, Ana Flávia}, title = {{Following the Money: Financing Bioeconomy in Brazil}}, institution = {Climate Policy Initiative}, year = {2024}, month = sep, url = {https://www.climatepolicyinitiative.org/wp-content/uploads/2024/09/Financing-Bioeconomy-in-Brazil.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }