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

Accelerating market momentum: The good news is that the pipeline of investable Nature-based Solutions (NbS) is growing around the world. In Brazil – the largest potential market for NbS – financing is beginning to flow at a greater scale, and projects are increasingly proving profitable for businesses, communities and investors, while enhancing food security. – At least USD$1.67bn of capital allocated to Nature-based Solutions in the country in the last 12 months (August 2023–August 2024). – High velocity of fund formation since the start of the year demonstrates future momentum. – Investors targeting double-digit returns, underlining commercial opportunity in the market. – Investments are flowing to a wide range of NbS, with agriculture-focused solutions a priority. – Wide range of case studies highlight growing impact, returns and potential for scale.Five success factors for market development: Developments in the Brazilian market offer exciting investment opportunities today, as well as models and learnings that other biodiversity-rich markets in the region and beyond can adapt and replicate. Drawing on a wide range of experience and case studies, partners point to five success factors for the NbS market: 1. Showcasing and growing the project pipeline, by value and volume. 2. Lowering the cost of capital through innovative financial mechanisms. 3. Recognizing community engagement and support as a precondition for success. 4. Harnessing nature tech to improve traceability, certification and integrity. 5. Connecting the investment ecosystem. Three shifts to unlock scale: But 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. Through conversations with expert partners from across the industry, we have identified three priority shifts that are needed, urgently: I. Increase demand for deforestation-free commodities and Nature-based Solutions. II. Deploy ‘catalytic’ capital to unlock more  private capital. III. Integrate climate and nature policy at the international and national level.Executive summary The inescapable imperative: Mitigating climate change and halting and reversing biodiversity loss is not an option but a precondition for a successful and resilient economy. Achieving a secure future is possible only by aligning finance and investment now to protect, restore and sustainably manage nature. The growing investment opportunity: Investing in nature and sustainable agriculture practices can deliver significant, mutually reinforcing benefits for businesses, investors and society. Ecologically ‘megadiverse’ countries around the world carry particular global significance, with a generational opportunity to deliver a thriving ‘bioeconomy’ across these regions. – Mitigate climate change, safeguard nature and build resilience. – Generate strong risk-adjusted returns for investors. – Accelerate sustainable development for countries and people. – Enhance food security. 06 Scaling nature finance now 07References 03 Unlocking the next phase of growth in Brazil and beyond Foreword 02 The Brazilian market – accelerating nowExecutive summary01 The opportunity and the imperative