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

1. Inevitable Policy Response, Quarterly Forecast Tracker Q3 2023 – Q1 2024, March 2024 2. G20 Brasil 2024 Sherpa Track, Initiative on Bioeconomy 3. UNEP, State of Finance for Nature 2023, December 2023 4. London School of Economics, Beyond climate: addressing financial risks from nature and biodiversity loss, December 2022 5. WEF, How to unlock $10.1 trillion from the nature-positive transition, July 2024 6. UNEP, State of Finance for Nature 2023, December 2023 7. Ibid. 8. UNEA: Nature-based solutions are actions to protect, conserve, restore, sustainably use and manage natural or modified terrestrial, freshwater, coastal and marine ecosystems which address social, economic and environmental challenges effectively and adaptively, while simultaneously providing human well-being, ecosystem services, resilience and biodiversity benefits. 9. Although not the focus of this report, developing the blue economy will also be critical to the transition, for further reading on this topic see: Grantham Research Institute, What is the blue economy?, May 2023 10. The Nature Conservancy, What Are Regenerative Food Systems? 11. The initiative has mapped a pipeline of >USD$21bn within 318 distinct investable opportunities, primarily in Brazil and also across LATAM and Sub-Saharan Africa 12. For example, in Agroforestry, Belterra and Courageous Land are contracting their agroforestry crops and generating higher cash flow rates per hectare than soy, the dominant cash flow crop in Brazilian agriculture; In Restoration of Degraded Pastureland, AGBI has generated high single digit net returns in USD in this real assets opportunity; In the Ecosystem/Forest Restoration, re.green and Patria are positioned to generate mid-teens for equity based on long-term carbon off-takes, greater than its comparable of eucalyptus plantations. Capital for Climate, 2024 13. IFACC, Finance for a forest-positive future, August 2024 14. Environmental Change Institute, Oxford study signals green shoots of optimism on nature finance, December 2023 15. Climate Asset Management, Making the case for investment allocations to natural capital, January 2024 16. UNEP, Funding nature-related sustainable development goals would deliver…, June 2024 17. BCG, Cultivating farmer prosperity, May 2023 18. World Bank, Empowering Indigenous Peoples to Protect Forests, August 2023 19. Science Based Targets, Carbon removals in Forest, Land and Agriculture (FLAG) Pathways, September 2022 20. Nature, The Global Flood Protection Benefits of Mangroves, March 2020 21. Climate Champions, A tale of resilience and restoration in Brazil’s Paraíba do Sul River Basin, September 2023 22. BCG, Mobilização de capital para escalar expansão responsável de lavouras e pecuária no Brasil, May 2023 23. Changes in Farm and Food Production Can Cut Greenhouse Emissions by a Third, May 2024 24. Carbon Brief, State of the Climate, July 2024 25. University of Oxford, $5 trillion of nature-related economics risks will amplify climate change, December 2023 26. Swiss Re, A fifth of countries worldwide at risk from ecosystem collapse as biodiversity declines, September 2020 27. Rainforest Foundation Norway, State of the tropical rainforest, 2021 28. WWF, Living Planet Report 2022, October 2022 29. Nature, Food systems are responsible for a third of global anthropogenic GHG emissions, March 2021 30. World Bank, Strains on freshwater resources: The impact of food production on water consumption, August 2023 31. UNCCD, Global Land Outlook Second Edition, April 2022 32. Climate Champions, Protecting people, nature, and climate 33. PNAS, Temperature increase reduces global yields of major groups in four independent estimates, August 2017 34. Independent High Level Expert Group on Climate Finance, A climate finance framework: decisive action to deliver on the Paris Agreement, November 2023 35. WEF, The Cerrado: Production and Protection, February 2024 36. McKinsey, The green hidden gem – Brazil’s opportunity to become a sustainability powerhouse, November 2022 37. ClimateWatch, Historical GHG Emissions, figure is for 2022 38. IEA, Aviation, Tracking Aviation 39. Global Environmental Change, When enough should be enough: Improving the use of current agricultural lands could meet production demands and spare natural habitats in Brazil, September 2014 40. Observatório do Código Florestal, 2022 41. IFACC, Finance for a forest-positive future, August 2024 42. Maria Belen Losada, Head of Carbon Markets, Itaú Unibanco, May 2024 43. Ministério do Desenvolvimento, Indústria, Comércio e Serviços, Governo Federal lança a Estratégia Nacional de Bioeconomia, June 2024 44. G20, G20 Bioeconomy Initiative: Meeting knowledge and nature, March 2024 45. Ministério do Meio Ambiente e Mudança do Clima, Na COP28, governo federal apresenta fundo para preservação de florestas tropicais, December 2023 46. Nature Finance, The Global Bioeconomy, 2024 47. Ibid. 48. Ibid. 49. G20, Bioeconomy Initiative 50. Spectra Investments, Performance of Brazilian private equity and venture capital funds 1994-2002, August 2023References 51. Frontiers in Ecology and the Environment, Importance of Indigenous Peoples’ lands for the conservation of Intact Forest Landscape, January 2020 52. Biodiversity and Conservation, Implementing Brazil’s Forest Code: a vital contribution to securing forests and conserving biodiversity, April 2021 53. Climate Champions, Regional Platforms for Climate Projects, Assets to Flows 2023 54. IDB, Brazil’s Ministry of Finance, IDB Plan to Create Hedging Platform for Brazil’s Green Transformation Plan Investments, December 2023 55. Capital for Climate, The Nature Tech Market, November 2022 56. ‘Offtake agreements’ refer to a contract to buy or sell goods that have not yet been produced. In carbon markets, this takes the form of an agreement to buy or provide a volume of carbon credits associated with future projects. 57. WWF, Common success factors for bankable nature-based solutions, August 2022 58. IFACC, Innovative Finance for the Amazon, Cerrado, and Chaco, May 2024 59. Environmental Change Institute, Oxford study signals green shoots of optimism on nature finance, December 2023 60. Impact Finance Research Consortium, Catalytic Capital in Impact Investing, September 2023 61. Blended Finance Taskforce, Better Guarantees, Better Finance, June 2023 62. WWF, Breaking Silos: Enhancing synergies across NDCs and NBSAPs, December 2023 Produced by Brunswick Creative www.brunswickgroup.com38 Scaling nature finance now 39Foreword References 02 The Brazilian market – accelerating now03 Unlocking the next phase of growth in Brazil and beyond Executive summary01 The opportunity and the imperative