Panorama de Financiamento Climático para Uso da Terra no Brasil 2021-2023

The report 'Panorama de Financiamento Climático para Uso da Terra no Brasil 2021-2023' by the Climate Policy Initiative (CPI/PUC-Rio) analyzes financial flows directed toward agriculture and forests aligned with climate goals in Brazil. It finds a significant increase in annual climate finance for land use, reaching an average of R$ 88.1 billion between 2021 and 2023, driven largely by rural credit and domestic private sources. The document details the instruments used, the sectors benefited, and the specific climate uses (mitigation, adaptation, and loss and damage), while highlighting gaps in transparency and the need for more rigorous verification of sustainable practices.

• Climate finance for land use in Brazil grew significantly, with an annual average of R$ 88.1 billion between 2021 and 2023, a 145% increase compared to the R$ 36.0 billion annual average recorded between 2015 and 2020.
• Domestic funding is the primary driver of the climate agenda in the land use sector, accounting for 97% of the mapped resources (R$ 85.3 billion/year), with private sources contributing 72% of this domestic total (R$ 61.4 billion/year).
• Rural credit is the most significant financial instrument, channeling R$ 50.8 billion/year (58% of the total), although this represents only 15.5% of all rural credit operations in the country during the period.
• A substantial portion of the growth in 'climate' rural credit is attributed to changes in data registration rather than new sustainable practices; specifically, R$ 11.5 billion/year (23% of mapped rural credit) was categorized as climate-aligned solely due to the recording of 'no-till' (plantio direto) practices in the Sicor system.
• Agricultural risk management instruments mobilized R$ 13.4 billion/year (15% of total), serving as the main driver for climate adaptation (R$ 7.5 billion/year, or 54% of adaptation flows). The Rural Insurance Premium Subsidy Program (PSR) was the most relevant, channeling R$ 5.9 billion/year.
• Expenditures on climate loss and damage grew by 357% between 2021 (R$ 2.2 billion) and 2023 (R$ 9.9 billion), totaling R$ 5.9 billion/year. These flows consist mainly of federal government indemnities, with 93% (R$ 5.4 billion) directed to the Proagro program.
• The agriculture sector was the largest recipient of climate finance, receiving R$ 65.1 billion/year (74%). Bioenergy and biofuels received R$ 9.8 billion/year (11%), and forests received R$ 8.4 billion/year (10%).
• The native forest sector relies heavily on the federal public budget, which provided R$ 2.1 billion/year (67% of native forest flows). However, government spending on climate land use is 24% lower than the average mapped between 2015 and 2020, impacting the administrative budgets of agencies like Ibama, ICMBio, and Funai.
• Thematic bonds captured R$ 12.9 billion/year (15%) but saw a sharp decline from R$ 22.1 billion in 2021 to R$ 2.5 billion in 2023, an 89% drop in two years.
• International flows accounted for R$ 2.9 billion/year (3%), primarily from public sources. Multilateral development banks provided 60% (R$ 1.7 billion/year), led by the Inter-American Development Bank (BID) and the World Bank. Germany and Norway were the most prominent international government contributors, particularly in the forest sector.

APA

Chiavari, J., Souza, P., Motta, M., Florias, R., & Minsky, E. (2024). Panorama de Financiamento Climático para Uso da Terra no Brasil 2021-2023. Climate Policy Initiative. https://www.climatepolicyinitiative.org/wp-content/uploads/2024/11/Panorama-de-Financiamento-Climatico-para-Uso-da-Terra-no-Brasil-2021-2023.pdf

Chicago

Chiavari, Joana, Priscila Souza, Miguel Motta, Renan Florias, and Eduardo Minsky. Panorama de Financiamento Climático para Uso da Terra no Brasil 2021-2023. Climate Policy Initiative, 2024. https://www.climatepolicyinitiative.org/wp-content/uploads/2024/11/Panorama-de-Financiamento-Climatico-para-Uso-da-Terra-no-Brasil-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=Panorama de Financiamento Climático para Uso da Terra no Brasil 2021-2023 |publisher=Climate Policy Initiative |date=October 2024 |url=https://www.climatepolicyinitiative.org/wp-content/uploads/2024/11/Panorama-de-Financiamento-Climatico-para-Uso-da-Terra-no-Brasil-2021-2023.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{chiavari2024panorama, author = {Chiavari, Joana and Souza, Priscila and Motta, Miguel and Florias, Renan and Minsky, Eduardo}, title = {{Panorama de Financiamento Climático para Uso da Terra no Brasil 2021-2023}}, institution = {Climate Policy Initiative}, year = {2024}, month = oct, url = {https://www.climatepolicyinitiative.org/wp-content/uploads/2024/11/Panorama-de-Financiamento-Climatico-para-Uso-da-Terra-no-Brasil-2021-2023.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }