Search Climate Insights Directory

Between 2015 and 2020, climate finance for land use in Brazil averaged US$ 6.6 billion per year, dominated by domestic private finance and rural credit. While the crop sector was the primary recipient, the report highlights a significant gap in the proportion of total rural credit that is climate-aligned and notes a decline in public budget allocations for the forest sector.

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.

The report finds that while the world outside China is nearing a 'no new coal' milestone, a massive surge in coal permitting and construction in China is offsetting global progress. In 2022, the global coal fleet grew by 19.5 GW, driven by China, which now accounts for 68% of global capacity under development. While the U.S. and EU continue to retire capacity, the pace of global retirements remains far below the levels required to meet a 1.5C pathway, which would necessitate an average of 117 GW of retirements per year. The report also highlights the role of private finance, noting that most financial institutions' coal policies remain insufficient to align with climate science.