Landscape of Climate Finance for Land Use in Brazil

Between 2015 and 2020, climate finance for land use in Brazil averaged US$ 6.6 billion per year, with 95% originating from domestic sources. Rural credit is the dominant instrument, though climate-aligned flows represent only 8% of total rural credit. The crop sector is the primary recipient of funds, and mitigation remains the dominant objective over adaptation. The report highlights a significant decline in public budget expenditures and a growing but still small role for thematic bonds.

• Climate finance for land use in Brazil averaged US$ 6.6 billion per year from 2015 to 2020, growing by 65% in Brazilian reais during this period, with total flows increasing from US$ 6.6 billion in 2015 to US$ 7.1 billion in 2020.
• Domestic sources provided 95% of climate-aligned finance (US$ 6.3 billion/year), with two-thirds of this (US$ 4.1 billion/year) coming from private finance, largely because financial institutions are mandated by public policy to allocate funds to rural credit.
• International finance accounted for only 5% (US$ 327 million/year) of total flows, primarily from public sources such as foreign governments, climate funds, and multilateral development banks, mostly via grants.
• Rural credit is the primary instrument for climate-aligned land use finance, channeling US$ 3.2 billion/year (48% of tracked flows), yet this represents only 8% of the total annual rural credit volume of US$ 42.2 billion.
• Agricultural risk management instruments, the main tool for climate adaptation, provided US$ 1.1 billion/year, with rural insurance being the most significant at US$ 625 million/year.
• Thematic bonds raised an average of US$ 1 billion/year (16% of total finance), growing from US$ 685 million in 2015 to US$ 1.6 billion in 2020, primarily through issuances by Brazilian companies abroad.
• Public budget expenditures for climate-aligned land use averaged US$ 767 million/year (11%) and were the primary source for the forest sector (US$ 572 million/year), but experienced a 39% real-term drop from US$ 993 million in 2015 to US$ 394 million in 2020.
• The crop sector was the largest recipient of climate finance, receiving US$ 3.9 billion/year (60%), followed by the forest sector at US$ 1.7 billion/year (25%), cattle at US$ 532 million/year (8%), and bioenergy and fuels at US$ 311 million/year (5%).
• Finance for climate mitigation dominated the landscape at US$ 4.5 billion/year (68%), while adaptation accounted for US$ 1.2 billion/year (19%) and dual-objective flows totaled US$ 859 million/year (13%).
• The Amazon Fund is the primary international climate fund for land use in Brazil, but its average annual approval of US$ 53 million represents only 0.7% of the total tracked climate finance for land use in the country.

APA

Chiavari, J., Coser, G., Florias, R., & Souza, P. (2023). Landscape of Climate Finance for Land Use in Brazil. Climate Policy Initiative. https://www.climatepolicyinitiative.org/wp-content/uploads/2023/09/Landscape-of-Climate-Finance-for-Land-Use-in-Brazil.pdf

Chicago

Chiavari, Joana, Gabriela Coser, Renan Florias, and Priscila Souza. Landscape of Climate Finance for Land Use in Brazil. Climate Policy Initiative, 2023. https://www.climatepolicyinitiative.org/wp-content/uploads/2023/09/Landscape-of-Climate-Finance-for-Land-Use-in-Brazil.pdf.

Wikipedia

{{cite report |last1=Chiavari |first1=Joana |last2=Coser |first2=Gabriela |last3=Florias |first3=Renan |last4=Souza |first4=Priscila |title=Landscape of Climate Finance for Land Use in Brazil |publisher=Climate Policy Initiative |date=September 2023 |url=https://www.climatepolicyinitiative.org/wp-content/uploads/2023/09/Landscape-of-Climate-Finance-for-Land-Use-in-Brazil.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{chiavari2023landscape, author = {Chiavari, Joana and Coser, Gabriela and Florias, Renan and Souza, Priscila}, title = {{Landscape of Climate Finance for Land Use in Brazil}}, institution = {Climate Policy Initiative}, year = {2023}, month = sep, url = {https://www.climatepolicyinitiative.org/wp-content/uploads/2023/09/Landscape-of-Climate-Finance-for-Land-Use-in-Brazil.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }