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 annually, dominated by domestic private sources (95% of total) and primarily channeled through rural credit. The crop sector was the largest beneficiary (60%), and the majority of funds (68%) were directed toward mitigation. While thematic bonds grew significantly, public budget expenditures for the sector declined over the period.

• Climate finance for land use in Brazil averaged US$ 6.6 billion per year between 2015 and 2020, showing a growth of 65% in Brazilian reais, with total flows increasing from US$ 6.6 billion in 2015 to US$ 7.1 billion in 2020.
• Domestic sources provided the vast majority of climate finance, accounting for 95% (US$ 6.3 billion/year). Of this domestic finance, two-thirds (US$ 4.1 billion/year) was private, largely because Brazilian financial institutions are mandated by public policy to allocate funds to rural credit.
• International finance represented 5% (US$ 327 million/year) of the total flows and was primarily public, consisting of contributions from foreign governments (US$ 136 million/year), climate funds (US$ 125 million/year), and multilateral development banks (US$ 58 million/year).
• Rural credit is the primary instrument for climate-aligned land use finance, channeling US$ 3.2 billion/year (nearly half of all tracked flows). However, these climate-aligned flows represent only 8% of the total annual average rural credit volume of US$ 42.2 billion.
• Agricultural risk management, the primary tool for climate adaptation, accounted for US$ 1.1 billion/year. Rural insurance was the most significant instrument within this category, totaling US$ 625 million/year, with US$ 500 million/year coming from private funds.
• Thematic bonds raised an average of US$ 1 billion/year (16% of total climate finance), with the volume growing from US$ 685 million in 2015 to US$ 1.6 billion in 2020, mostly through issuances by Brazilian companies in international markets.
• Public budget expenditures averaged US$ 767 million/year (11%) and served as the primary mechanism for forest sector policies (US$ 572 million/year). However, public budget finance declined 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%). Other recipients included the forest sector (US$ 1.7 billion/year or 25%), cattle (US$ 532 million/year or 8%), bioenergy and fuels (US$ 311 million/year or 5%), and multi-sector projects (US$ 86 million/year or 1%).
• Finance was primarily geared toward mitigation, which accounted for US$ 4.5 billion/year (68%). Adaptation finance totaled US$ 1.2 billion/year (19%), and flows serving both objectives totaled US$ 859 million/year (13%).
• The Amazon Fund is the primary climate fund for international land use finance 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} }