We invited partners to reflect on what we have collectively learned as the NbS market has developed in Brazil. Five lessons emerged that can help inform and accelerate progress on nature finance in Brazil and around the globe.Learnings: Five success factors The success of these solutions has been made possible through radical collaboration across the investment chain – local communities and farmers, project developers, corporate customers, and investors – to reduce project risks and overcome barriers that have previously held up projects and investments. Lack of adequate, investible project pipelines has often been cited as a key barrier in holding back nature investment. But a new reality is rapidly emerging. Capital for Climate has mapped an NbS pipeline of >USD$21bn within 318 distinct investable opportunities, primarily in Brazil and also across LATAM and Sub-Saharan Africa. They are actively working to showcase and grow more opportunities, including via their NbS Investment Intelligence Platform that provides investors with up-to-date insights on investment theses, new investable opportunities and ecosystem players; as well as virtual and in-person roadshows, summits and showcases. Another example is ‘pipeline partnerships’, with partners scouting for opportunities, for example with the UN Climate Change High-Level Champions’ Regional Platform for Climate Projects.53 Nature-based Solutions can require significant upfront investments and take years to fully mature. This can create cash flow issues and limit financing opportunities for new projects, challenges which are compounded in developing markets like Brazil, where interest rates are relatively high and exchange rate risks can disincentivize international investors. Recent examples underline the importance of targeted efforts to overcome these challenges with new financial mechanisms. IFACC signatories have disbursed USD$240m in tailored financial instruments that help de-risk projects and reduce the cost of capital, lifting new projects off the ground. At the same time, the Inter-American Development Bank is working with the Brazil Ministry of Finance to provide products to protect against variations in the Brazilian exchange rate and attract Foreign Direct Investment.54 Much more can and must be done in this area (see Section 3).Showcasing and growing the project pipeline, by value and volume Lowering the cost of capital through innovative financial mechanisms1 2The case examples featured here show the opportunities to foster socioeconomic development in local communities – alongside delivering environmental and social impact and investment opportunities. The experience of these projects also shows that engaging local communities is critical for success. For example, INOCAS had to overcome an initial lack of interest from local farmers and resulting low participation rates that jeopardized overall project success. Through identifying and engaging with early adopters, the project team built a critical mass of farmers interested in taking part and were able to effectively deliver the project.Recognizing community engagement and support as a precondition for success3 New technologies offer significant opportunities to more rapidly identify and assess viable nature-based investments and measure and monitor their outcomes for people and the planet.55 This is critical to both agreeing on impact metrics, and reporting against them. For instance, the recently launched Resilient Planet Data Hub identifies the potential for investors to use data to map viable projects, understand commercial returns and estimate benefits to society – much as Mombak are doing as they aim to use science and technology to develop the highest quality carbon removal credits.Harnessing nature tech to improve traceability, certification and integrity4 As market gaps are being closed and replicable models created, scaling investment means bringing together all parts of the investment chain. In May 2024, Capital for Climate’s Brazil Nature-based Solutions Investment Summit brought together 26 investable NbS opportunities from the platform’s vetted pipeline of ~150 Brazilian funds, project developers and enterprises with 111 domestic and international investors, and a range of leading market stakeholders. In aggregate, the 26 presented opportunities were estimated to represent USD$1.2bn in investable opportunity. To date, Capital for Climate reports that USD$80m in deals are already in process from the Summit alone, which will be delivered again in May 2025. Critical to this effort is building links between international investors who have a focus on Nature-based Solutions and their prospective counterparties of highly qualified Brazilian General Partners who are knowledgeable and active in the market.Connecting the investment ecosystem 5 28 Scaling nature finance now 29Foreword References 02 The Brazilian market – accelerating now03 Unlocking the next phase of growth in Brazil and beyond Executive summary01 The opportunity and the imperative

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