Despite this momentum, a significant financing gap remains. UNEP data shows annual investment into Nature-based Solutions (NbS) needs to almost triple globally from USD$200bn to USD$542bn by 2030 to secure the stable climate and healthy ecosystems people, businesses and economies require to prosper.3 Looking ahead, NbS presents a generational investment opportunity. Mitigating climate change and reversing biodiversity loss is not an option but a precondition for a resilient economy. Nature-based Solutions provide an effective, capital-efficient, and large-scale solution to both. Increasingly stringent nature-related legislation, intensifying reputational scrutiny and customer demand for certified sustainable commodities will further strengthen the conditions for investors to generate strong risk-adjusted returns from nature financing. Such nature strategies will also be key for financial institutions to deliver on their own net-zero commitments and anticipate growing regulatory focus by central banks on biodiversity loss.4 The scale of this opportunity is immense. Embracing nature-positive transitions in key socio-economic systems could unlock USD$10.1tn in business opportunities by 2030.5 Yet currently, only 18% of finance for Nature-based Solutions comes from private capital, equivalent to just 1/6 of the private capital going to clean energy systems today.6 That dynamic is now starting to shift, with financial institutions, supply chain companies, policymakers and civil society groups increasingly working together to support the deployment of private sector investment into nature. As this report shows, NbS are investable today and will become a key component of any climate-related portfolio in the near future.USD$542bn $200bn 2030 2024The finance gap UNEP data shows annual NbS investment needs to almost triple globally 18% Private capital82% Public c apitalPrivate/Public finance ratio‘Nature finance’ refers to finance activities that help conserve, restore or sustainably manage nature, and that align financial flows with the goals of the Global Biodiversity Framework and Paris Agreement.7 As with climate finance, there are two sides to nature finance. The first is ‘greening finance’, which involves transforming processes and systems to accurately reflect the value of nature and improve the management of material nature-related financial risks. For example, increasing efforts by banks and investors to eliminate Nature finance Nature-based Solutions (NbS) Nature-based Solutions: protecting, restoring and sustainably managing land to meet global climate and biodiversity goals Regenerative agriculture Sustainable livestock managementRestoration of degraded pasture Ecosystem restorationForest bioeconomySustainable forest managementcommodity-driven deforestation from their portfolios. The second is ‘financing green’, meaning positive investments into nature, including the strategic allocation of capital to funds and enterprises developing Nature-based Solutions (NbS). The two work hand in hand: it will be impossible to effectively manage nature-related risks at a portfolio level if we don’t accelerate investments into real-economy Nature-based Solutions. This report is focused on ‘financing green’, exploring the growing opportunity to invest in NbS. Aligning with the International Union for Conservation of Nature (IUCN), United Nations Environment Programme (UNEP) and United Nations Environment Assembly (UNEA), we define NbS in a broad, pragmatic way. NbS are actions to protect, restore and sustainably manage natural ecosystems, with the aim of tackling climate change and/or biodiversity loss while enhancing ecosystem conditions, resilience and human well-being.8 This report focuses on terrestrial Nature-based Solutions.9 This includes activities commonly associated with NbS such as sustainable forest management and ecosystem restoration, as well as projects focused on transitioning agricultural supply chains, such as sustainable livestock management, agroforestry and regenerative agriculture. The latter recognizes that with more than half of the earth’s habitable lands currently used for agriculture,10 transforming global food systems to become regenerative will be critical to meeting climate and nature goals while sustainably nourishing a growing global population. Investment in NbS will be key to this transition, funding the development of new agricultural processes that restore habitats, protect clean drinking water, and increase biodiversity.Source: UNEP, State of Finance for Nature 2023, December 2023. Source: UNEP, State of Finance for Nature 2023, December 2023. 10 Scaling nature finance now 11Foreword 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