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

Impact Launched in 2022, Mombak is developing large-scale native, biodiverse reforestation projects in the Amazon – aiming to store carbon while creating new habitats for a diverse set of plants and animals to thrive. The strategy is to purchase or lease deforested land, then maximize land restoration, carbon capture, and local socio-economic development through the process of reforestation of native, biodiverse forests. Mombak is taking a proactive approach to ensuring its carbon credit activities are high-quality and credible. The company has adopted a technical methodology including satellite imagery analysis, drone imaging, and bioacoustics sensors, enhancing accuracy and efficiency. Mombak carbon removal is set to be certified under the VERRA Standard , with co-benefits certified by The Climate Community and Biodiversity Alliance . Conservation International designs, supports and tracks Mombak’s impacts. Environmental and social risks are mitigated by IFC Performance Standards , while AXA ensures institutional-grade governance.Growth trajectory The company is gathering interest from investors around the world, and has already raised more than USD$100m from investors and offtakers for developing current and future projects. Without disclosing precise figures, the startup reports that it has closed deals selling each ton of carbon for ‘above USD$50’, while the average market price ranges  between USD$3 and USD$15 – demonstrating the projects’ potential for profit and economic returns of investment. Mombak has also had significant corporate interest. In November 2023, Microsoft entered into a carbon removal purchase agreement with Mombak, agreeing to purchase up to 1.5 million tons of carbon removal credits by 2032. This marks Microsoft’s largest nature-based carbon removal agreement to date and its first multi-year contract in Brazil. See sources and learn more at the Mombak website , Microsoft press release , and Capital for Climate investment page . Mombak Combining science, finance, and technology to demonstrate the value of high-quality reforestation Impact The Reverte lending program in the Cerrado aims to enable farmers and ranchers to make the investments that are needed to bring degraded pastureland back into cultivation. Following years of beef production, up to 18 million hectares of soil have been degraded in the Cerrado. The degraded soil either lies barren or is used as pasture with low productivity. Reverte aims to reverse this to unlock a triple win: higher productivity, more conservation and returns on investment for the farmers. They integrate different tools and approaches, with financing to support new seed varieties adapted to local conditions and soils, agronomic practices that enhance soil conditions and digital tools to allow farmers to control and monitor the improvement in soil and agricultural conditions. Recognizing the systemic nature of the challenges farmers face in transitioning agricultural production methods, the effort is driven by cross-sector partnership. Bringing together diverse expertise and capabilities from The Nature Conservancy, Syngenta Group, the major bank Itaú BBA and Embrapa, a Brazilian public agricultural research institute. To finance this progress, Syngenta has been working with Banco Itaú BBA to structure loans in a way that help farmers overcome initial set up and transition costs, distributing loans with up to a 10-year maturity, in some cases including a three-year grace period. Providing ‘patient capital ’ for farmers at attractive interest rates in this way can be critical to overcoming initial cash flow challenges, and ultimately unlocking greater returns following the transition to new production processes. Itaú is the lender of record to the farmer, with Syngenta sharing a material portion of the lending risk. To date R1.6bn has been lent through this program, equivalent to USD$282m. Growth trajectory This innovative financing arrangement has directly resulted in over 100,000 hectares of degraded pasture land brought back into cultivation, helping to reduce the pressure of agricultural expansion over separate areas of native vegetation. Syngenta have committed to fund Reverte with a “significant portion” of the USD$2bn investment they are set to invest in sustainable solutions. The program hopes to scale over tenfold in the coming years, reaching 1,000,000 hectares and is committed to exploring other innovative financial solutions that can continue to unlock funding. See sources and learn more at the Reverte program website , Syngenta’s sustainability page , and IFACC’s 2023 Market Report .Reverte program Unlocking ‘patient finance’ for farmers to deliver a win-win-win Case study Case study 24 Scaling nature finance now 25Foreword References 02 The Brazilian market – accelerating now03 Unlocking the next phase of growth in Brazil and beyond Executive summary01 The opportunity and the imperative