Scaling nature finance now The opportunity for investors in Brazil and beyond

The signatories of the ‘Innovative Finance for the Amazon, Chaco, and Cerrado’ (IFACC) initiative have committed to the IFACC Declaration, with the ambitious goal of securing USD$10bn in financial commitments Industry developing innovative finance mechanisms The initiative aims to support sustainable agricultural growth while protecting key biomes. By December 2023, eleven financial products had already disbursed USD$240m in alignment with IFACC’s framework and objectives. The 11 IFACC-aligned products have distinct characteristics, reflecting the variety of signatory organizations and the diversity of agriculture financing needs. In terms of geographic coverage, six of these products are focused on the Cerrado biome, four on the Amazon and one covers both biomes.By August 2024, IFACC had grown to include 21 signatories, encompassing financial institutions and agribusiness value chain companies. And while this is only a fraction of the total potential opportunity, it represents substantial growth of innovative finance models available to support the agricultural transition in the region, from a starting point of close to zero in 2022. Drawing on expertise from across the value chain, the financial products are designed in a targeted way to help transform beef, soy and bioeconomy production models.and USD$1bn in disbursements by 2025. These funds target soy, cattle production, and bioeconomy projects that are free from deforestation and land conversion in South America. There is acceleration, it’s becoming more attractive, there are new investors and projects coming into the market all the time.” “ We have not only these opportunities on the ground, but also the financial infrastructure to support them, plus a good legal framework and a huge commitment of both authorities and the private sector.”Daniel Brandão , Partner and Nature-based Solutions Director at Vox Capital “ Brazil is prepared to receive international capital in a very organized, regulated, and transparent manner, aligned with international standards.” Marina Procknor , Partner, Mattos Filho“ In the last two years, a consensus has been created in the public and private sectors in Brazil that the green economy is a generational opportunity for our country. An irreversible path is set, one that will demand and spur immense amounts of investment. I hope international investors do not miss the opportunity this ecological transition presents.” José Pugas , Partner & Head of ESG at JGP“ We have the tools, we have the capacities, we have available land. We have everything that’s necessary here. Let’s balance benefits and risks, and you will see that Brazil is the place to invest right now.” Marcello Brito , Executive Secretary, Amazon States Consortium “ Deeply understanding nature-based solutions and bridging the gap between science and financial considerations is essential to guiding economic agents toward decarbonization. In this regard, Brazil is uniquely positioned to lead this movement on a global scale.” Tiago Gomes , Partner at Fama re.capitalJoaquim Levy , Chair GFANZ Brazil Farm Loan ProductsFarmland Investment FundsCapital Market OfferingsCorporate Debt InstrumentsCarbon-Based StructuresOther Innovative MechanismsInnovative financial mechanismsBank Catalytic funds Value chain companies Asset manager Facilities and operators Securitization companies Scaling nature finance now 21 20References 03 Unlocking the next phase of growth in Brazil and beyond Foreword 02 The Brazilian market – accelerating nowExecutive summary01 The opportunity and the imperative