Unlocking the next phase of growth in Brazil and beyond“ We are just at the tip of the iceberg now in Brazil, there is space for significant growth.” Pedro Moura Costa , Founder and CEO at Sustainable Investment ManagementThe momentum in the Brazilian NbS market is clear, with the volume, value and scale of projects and deals set to grow further. These financial flows can play a crucial role in supporting the development of a thriving bioeconomy in the region. Solutions exist and projects are being delivered at increasing scale. Based on the rising deal flow, new innovative financial mechanisms coming to market and the growing number of successful projects, Capital for Climate and IFACC believe that since 2020 the NbS market has been progressing through the ‘pilot’ stage of a classic ‘S curve’ of market development. Many new business models are in early stages of their evolution, testing new approaches, product offerings and structures. Through conversations with expert partners from across the industry, we have identified three priority shifts that are urgently needed. On the following pages, we outline why each change is necessary, where we are seeing momentum, and what must happen next to unlock further progress. I. Increase demand for deforestation-free commodities and Nature-based SolutionsII. Deploy ‘catalytic’ capital to unlock more private capital III. Integrate climate and nature policy at the international and national levelBut to fully unlock this significant investment opportunity, in Brazil and other high potential biodiversity-rich markets around the world, structural changes are needed to create the enabling conditions for success. 03 Market development: the ‘S curve’ Pilot Phase 2020 2023 2027 2030Growth PhaseEstablished Investment Thesis N.B. This graph is illustrative only. Scaling nature finance now 31 30References 03 Unlocking the next phase of growth in Brazil and beyond Foreword 02 The Brazilian market – accelerating nowExecutive summary01 The opportunity and the imperative

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