Brazil is preparing to launch a landmark blended finance auction to raise up to $200 million for sustainable land restoration, focusing on degraded pastureland across the country. The initiative blends $100 million in public funds from Brazil’s Climate Fund with at least 1.5 times that amount in private capital, 60% of which must come from international sources.
This bold project supports Brazil’s broader ecological transition and could become one of the largest land restoration efforts in the world. It forms a key part of the government’s “Brazil Ecological Investment” program, which is set to be officially announced by the Ministry of Finance, the Ministry of Agriculture, and the Ministry of the Environment.
The financing model behind the auction is designed to attract private investment by reducing financial risk through the use of public capital. Participating banks will be required to offer at least 1.5 times the public contribution, meaning a minimum of $150 million in private investment. Depending on investor interest, total funds could reach $200 million.
“This has a huge environmental impact and is attracting significant international interest,” said Brazil’s Finance Minister Rogério Ceron. “Our goal is to restore around 10,000 hectares of land under optimal conditions. It’s a highly ambitious target.”
At least 60% of the leveraged capital must come from international markets, with the remaining 40% permitted from domestic sources. A regulatory decree to be issued this week will give financial institutions 45 days to submit their proposals. The bank offering the highest level of private leverage will be awarded the auction.
This effort follows Brazil’s growing engagement with international climate finance initiatives. The country recently partnered with the world’s largest climate financing alliance to expand funding for its green growth strategy.
Ceron emphasized the project’s scalability and called it a cornerstone of Brazil’s ecological transformation agenda. The restoration effort also strengthens the “National Program for the Conversion of Degraded Pasturelands,” launched in 2023. That program seeks to improve agricultural productivity on low-yield land without driving further deforestation.
“There’s a real appetite for leverage,” Ceron added. “We may see private capital fully matching the $100 million in public funding.”
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