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

Between 2021 and 2023, climate finance for land use in Brazil averaged US$ 17.1 billion per year, a 99% increase from the 2015-2020 period. Domestic sources provided 97% of these resources, with rural credit serving as the primary instrument (58% of total flows). While the crop sector was the largest recipient (74%), the native forest sector remained heavily dependent on the federal public budget. The report highlights a significant rise in 'loss and damage' spending due to extreme weather events and notes a sharp decline in the use of thematic bonds for land use after 2021.

• Climate finance for land use in Brazil grew significantly, reaching an annual average of US$ 17.1 billion between 2021 and 2023, which is a 99% increase compared to the US$ 8.6 billion annual average from 2015 to 2020.
• Domestic finance is the primary driver of the land use climate agenda, accounting for 97% (US$ 16.6 billion per year) of tracked resources, while international flows contributed only 3% (US$ 551 million per year).
• Rural credit is the most utilized instrument, channeling US$ 9.9 billion per year (58% of total tracked finance), though this represents only 15.5% of total rural credit operations in Brazil for the period.
• The crop sector was the dominant recipient of climate finance, receiving US$ 12.4 billion per year, or 74% of all land-use flows.
• Spending on climate loss and damage grew by 386% between 2021 and 2023, rising from US$ 0.4 billion to US$ 2.0 billion, primarily through federal government compensations via PROAGRO.
• The native forest sector relies heavily on the federal public budget, which provided 70% (US$ 420 million per year) of its resources, while the planted forest sector was mainly funded by thematic bonds and BNDES.
• Thematic bonds saw a drastic decline in the land use sector, falling from US$ 4.2 billion in 2021 to US$ 0.5 billion in 2023.
• A significant portion of the growth in climate-smart rural credit is attributed to the self-reporting of no-till farming in the SICOR database, which accounted for 23% of tracked rural credit (US$ 2.2 billion per year).
• International development finance was led by multilateral development banks (60% of international flows), with the Inter-American Development Bank (IADB) and World Bank as the top contributors.

APA

Chiavari, J., Souza, P., Motta, M., Florias, R., & Minsky, E. (2024). Landscape of Climate Finance for Land Use in Brazil 2021-2023. Climate Policy Initiative. https://www.climatepolicyinitiative.org/wp-content/uploads/2024/11/Landscape-Climate-Finance-Land-Use-Brazil-2021-2023.pdf

Chicago

Chiavari, Joana, Priscila Souza, Miguel Motta, Renan Florias, and Eduardo Minsky. Landscape of Climate Finance for Land Use in Brazil 2021-2023. Climate Policy Initiative, 2024. https://www.climatepolicyinitiative.org/wp-content/uploads/2024/11/Landscape-Climate-Finance-Land-Use-Brazil-2021-2023.pdf.

Wikipedia

{{cite report |last1=Chiavari |first1=Joana |last2=Souza |first2=Priscila |last3=Motta |first3=Miguel |last4=Florias |first4=Renan |last5=Minsky |first5=Eduardo |title=Landscape of Climate Finance for Land Use in Brazil 2021-2023 |publisher=Climate Policy Initiative |date=November 2024 |url=https://www.climatepolicyinitiative.org/wp-content/uploads/2024/11/Landscape-Climate-Finance-Land-Use-Brazil-2021-2023.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{chiavari2024landscape, author = {Chiavari, Joana and Souza, Priscila and Motta, Miguel and Florias, Renan and Minsky, Eduardo}, title = {{Landscape of Climate Finance for Land Use in Brazil 2021-2023}}, institution = {Climate Policy Initiative}, year = {2024}, month = nov, url = {https://www.climatepolicyinitiative.org/wp-content/uploads/2024/11/Landscape-Climate-Finance-Land-Use-Brazil-2021-2023.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }