Groundbreaking Study by Climate Finance Hub Brazil Highlights Investments in Mitigation, Adaptation, and Greater Environmental Transparency
In a critical moment for advancing climate finance goals, with the world looking ahead to COP30 in the Amazon, Brazil has launched its first-ever mapping of the sustainable finance ecosystem, identifying 37 key initiatives driving the transition to a low-carbon economy.
The pioneering study, unveiled on February 6 by the Climate Finance Hub Brazil (CFH), provides an in-depth analysis of organizations that actively support and accelerate the climate agenda through financial mechanisms.
Understanding Climate Finance
Climate finance refers to the flow of capital directed toward green projects aimed at mitigating climate change and adapting cities to its increasing challenges. This encompasses a wide range of initiatives, from financing renewable energy projects to developing climate-resilient infrastructure.
More broadly, climate finance can also be seen as an integrated ecosystem that recognizes the necessity of reshaping the entire financial system to facilitate a sustainable transition.
Key Findings and Industry Insights
According to Linda Murasawa, lead researcher at CFH, integrating climate action into financial strategies remains a significant challenge for many businesses. The hub’s primary goal is to provide clear, actionable insights for financial and private sector stakeholders, enabling them to assess sustainable finance opportunities, understand climate-related risks, and make informed investment decisions.
"Individuals and companies cannot tackle the climate crisis alone. Collaborative models are essential," Murasawa emphasized.
One of the study’s most striking insights is the lack of alignment with global sustainability standards among many initiatives. Denise Hills, a CFH board advisor, noted that this mapping offers a clear snapshot of the market’s progress, highlighting the rapid expansion of sustainable investments in Brazil. "It’s about bringing clarity to financing the climate transition," Hills stated.
Five Key Sectors in Climate Finance
The report categorizes climate finance initiatives into five essential sectors:
Climate Disclosure: Organizations promoting transparency and accountability in climate risk assessment and financial decision-making. Examples include institutions focused on greenhouse gas (GHG) emissions reporting and adaptation planning.
Scientific Research: Providing critical data on climate impacts and future projections, which serve as a foundation for financial markets and investment strategies.
Sustainable Finance: The integration of environmental, social, and governance (ESG) factors into financial decisions, channeling capital toward sustainable projects and technologies.
Sectoral Representation: Organizations advocating for climate policies and best practices in key industries such as agriculture, energy, and transportation.
Knowledge and Open Data Platforms: Initiatives facilitating the collection and dissemination of climate-related information, fostering transparency and better investment decision-making.
Brazil’s Progress in the Global Climate Finance Landscape
Brazil has made significant strides in positioning itself as a leader in climate finance. The Partnership for Carbon Accounting Financials (PCAF) now includes 13 financial institutions in Brazil committed to measuring emissions linked to financial activities.
Although the financial ecosystem dedicated to climate action is still evolving, it has become more structured, ensuring efficient resource allocation for mitigation and adaptation efforts.
Environmental transparency has also reached new heights. In 2023, over 1,100 Brazilian companies participated in the Carbon Disclosure Project (CDP), covering 78% of the national capital market. This reflects an increasing commitment to environmental accountability and responsible climate impact management.
Additionally, Brazil has emerged as a pioneer in adopting global climate reporting standards such as the Task Force on Climate-related Financial Disclosures (TCFD) and the International Sustainability Standards Board (ISSB), solidifying its leadership in Latin America for financial transparency and best practices.
The country’s climate goals are progressing rapidly. The number of Brazilian companies with validated commitments under the Science Based Targets initiative (SBTi) surged by 82% in just one year.
Brazil’s financial sector is also actively engaging in global initiatives such as the Net-Zero Banking Alliance and the Asset Owner Alliance, which aim to align investment portfolios with carbon neutrality, signaling a paradigm shift in financial decision-making.
Technology as a Key Ally in Climate Action
Technology plays a pivotal role in combating climate change. Platforms like MapBiomas are revolutionizing open data accessibility by mapping emissions and deforestation trends across Brazil.
Meanwhile, nature-based solutions and the bioeconomy remain underexplored areas with immense potential. Leveraging Brazil’s rich biodiversity could position the country as a global leader in sustainable economic development and socio-biodiversity initiatives.
Conclusion: A Sustainable Financial Future for Brazil
The study underscores Brazil’s privileged position in the global movement toward a more sustainable future. By fostering a well-structured financial ecosystem aligned with climate goals, the country is paving the way for innovative investment strategies that balance economic growth with environmental responsibility.
Mapped Initiatives
Below is the list of the 37 climate finance initiatives categorized by sector:
Climate Disclosure Initiatives
CDP (Carbon Disclosure Project)
The Task Force on Climate-related Financial Disclosures (TCFD) / International Sustainability Standards Board (ISSB)
Global Reporting Initiative (GRI)
Scientific Research
Science Based Targets initiative (SBTi)
Sustainable Finance
Partnership for Carbon Accounting Financials (PCAF)
Coalition of Finance Ministers for Climate Action (CFMCA) & The Helsinki Principles
United Nations Environment Programme Finance Initiative (UNEP FI)
Net-Zero Asset Owner Alliance (NZAOA)
Net Zero Banking Alliance (NZBA)
Equator Principles (EPs)
Moody’s Net Zero Assessment Platform
Coalition for Climate Resilient Investment (CCRI)
InsuResilience Global Partnership (IGP)
Sectoral Representation
Brazilian Federation of Banks (FEBRABAN)
Brazilian Business Council for Sustainable Development (CEBDS)
National Confederation of Industry (CNI)
Brazilian Confederation of Agriculture and Livestock (CNA)
Brazilian Association of Financial and Capital Markets Entities (ANBIMA)
Brazilian Association of Development (ABDE)
National Confederation of Insurance Companies (CNseg)
National Association of Securities Brokers and Distributors (ANCORD)
Brazilian Association of Commercial Banks (ABBC)
Brazilian Association of International Banks (ABBI)
Knowledge and Open Data Platforms
Financial Innovation Lab (LAB)
Nature Investment Lab
Brazilian Alliance for Sustainable Finance and Investment (BRASFI)
NewClimate Institute for Climate Policy and Global Sustainability
Capacity-building Alliance of Sustainable Investment (CASI)
Glasgow Financial Alliance for Net Zero (GFANZ)
Green Finance Platform for Latin America and the Caribbean (GFL)
UNEP’s Climate Finance Unit
AdaptaBrasil
National Emissions Registry System (SIRENE)
MapBiomas
ClimateScanner
Getulio Vargas Foundation - Center for Sustainability Studies (FGVces)
World Bank Climate Change Knowledge Portal (CCKP)
By strengthening its climate finance ecosystem, Brazil is taking decisive steps toward achieving long-term sustainability and economic resilience.
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