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

Climate finance for land use in Brazil averaged US$ 17.1 billion annually from 2021 to 2023, a 99% increase from the 2015-2020 period. Domestic sources provided 97% of these resources, with the private sector contributing 72% of domestic finance. Rural credit was the primary financial instrument, accounting for 58% of total flows. While crops received the most funding (74%), the native forest sector remained heavily dependent on the federal public budget and international public sources. Mitigation-focused finance dominated at 57% of total flows, while spending on climate losses and damages grew significantly, reaching US$ 2.0 billion by 2023.

• Climate finance for land use in Brazil saw a significant increase, rising from an annual average of US$ 8.6 billion between 2015 and 2020 to US$ 17.1 billion per year between 2021 and 2023. This growth is attributed to both increased resource mobilization and the reclassification of existing flows as sustainable due to better credit conditions for climate-aligned practices.
• Domestic finance is the primary driver of the land use climate agenda, representing 97% of tracked resources (US$ 16.6 billion per year). Within this domestic pool, the private sector provided 72% (US$ 11.9 billion per year), largely mobilized by public policies such as the Agricultural Plan and CBIOs.
• International climate finance for land use in Brazil is relatively low, totaling US$ 551 million per year (3% of total flows), and is overwhelmingly public (96%). Multilateral development banks are the lead international financiers, with the Inter-American Development Bank and World Bank providing 33% and 27% of these flows, respectively.
• Rural credit is the dominant financial instrument, accounting for 58% of total tracked finance (US$ 9.9 billion per year). Other significant instruments include agriculture risk management (15%), thematic bonds (14%), and low-cost credit (5%).
• The crops sector received the highest volume of climate finance at US$ 12.7 billion per year (74% of total). In contrast, the forestry sector received US$ 1.6 billion per year (9%), with native forests relying heavily on the federal budget (70% of its funding) and international governments (15%).
• Climate mitigation accounted for the largest share of finance at 57% (US$ 9.8 billion per year), followed by dual-objective projects at 20% and adaptation at 16%. Spending on climate losses and damages grew by 386% between 2021 and 2023, increasing from US$ 0.2 billion to US$ 2.0 billion.

APA

Climate Policy Initiative (2024). Landscape of Climate Finance for Land Use in Brazil, 2021-2023. https://www.climatepolicyinitiative.org/publication/landscape-of-climate-finance-for-land-use-in-brazil-2021-2023/

Chicago

Climate Policy Initiative. Landscape of Climate Finance for Land Use in Brazil, 2021-2023. 2024. https://www.climatepolicyinitiative.org/publication/landscape-of-climate-finance-for-land-use-in-brazil-2021-2023/.

Wikipedia

{{cite report |author=Climate Policy Initiative |title=Landscape of Climate Finance for Land Use in Brazil, 2021-2023 |date=6 November 2024 |url=https://www.climatepolicyinitiative.org/publication/landscape-of-climate-finance-for-land-use-in-brazil-2021-2023/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatepolicyinitiative2024landscape, author = {{Climate Policy Initiative}}, 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/publication/landscape-of-climate-finance-for-land-use-in-brazil-2021-2023/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }