The new initiative, launched by BB, BNDES, GFANZ, iCS, and Itaúsa Institute at New York Climate Week, will focus on strengthening the Nature-Based Solutions investment ecosystem in Brazil. The Lab is designed to accelerate the deployment of Nature-Based Solutions (NBS) in Brazil, promoting cross-sector collaboration to stimulate sustainable investment opportunities and drive impactful climate action.
September 23, 2024 – Banco do Brasil (BB), the Brazilian Development Bank (BNDES), the Glasgow Financial Alliance for Net Zero (GFANZ), the Institute for Climate and Society (iCS) and Itaúsa Institute announced the launch of the Nature Investment Lab during New York Climate Week. The Lab will address current challenges in financing and scaling nature-based solutions (NbS) to mitigate greenhouse gas emissions from agriculture, forestry, and other land use (AFOLU) in Brazil.
The launch of the Lab comes at a time when Brazil is becoming a global environmental leader, underscored by its current role as the G20 Presidency and its upcoming hosting and Presidency of COP30 in 2025. By helping to create a conducive environment for NbS investments and address emissions, the Nature Investment Lab will help establish Brazil as a leader in NbS financing.
The Lab will serve as a private sector-led collaborative platform, bringing together policymakers, private companies, financial institutions, philanthropies, and international organizations to address these issues and strengthen the NbS investment ecosystem in Brazil. Its outputs will also set a precedent for private-sector engagement in NbS worldwide.
The Lab’s operations will be structured around three task forces focusing on Regulatory and Policy frameworks, Innovative Pilot Transactions, and Transaction Costs and Impacts. These groups will work collaboratively to develop regulatory enhancements, innovative ideas for financial instruments, and scalable business models for NbS projects in Brazil with tangible deliverables by COP30.
Luciana Costa, BNDES’ Director of Infrastructure, Energy Transition and Climate Change, added: “Brazil has a significant potential to scale Nature-Based Solutions that can deliver negative emissions and enhance biodiversity to the world. The Nature Investment Lab seeks to establish an ecosystem where all key stakeholders collaborate to promote this type of project. By doing so, Brazil aims not only to achieve its net zero emissions but also to position itself as a global leader and a model in this vital sector. As a promoter of the Lab, BNDES will contribute by incorporating a development perspective on the investments, ensuring they also generate positive impacts to the country.”
“We are committed to preserving our biomes and combating social inequality. One example is that BB’s bioeconomy portfolio in the Legal Amazon exceeded R$1.4 billion in June of this year, in credit earmarked for financing natural products from that region. We are leading players in sustainable practices and businesses in the global financial system, which is why we have a series of initiatives on the agenda that seek to mobilize companies and organizations to achieve the Sustainable Development Goals,” says José Ricardo Sasseron, Vice President of Government Business and Corporate Sustainability at Banco do Brasil.
Mary Schapiro, GFANZ Vice Chair and Head of Secretariat for GFANZ mentions: “Combating climate change and threats to limited natural resources requires using every tool at our disposal. Nature-based solutions present a unique opportunity to tackle both challenges simultaneously. The Nature Investment Lab will help enable greater private investments in these projects, positioning Brazil as a model for other nations to adopt and benefit from these sustainable practices.”
Maria Netto, iCS executive director adds that: “The Nature Investment Lab is a transformative initiative focused on scaling up financing for Nature-Based Solutions. By bringing together leaders from the public, private, and philanthropic sectors, the project aims to create an enabling environment for driving investment into restoration, bioeconomy, and regenerative agriculture projects in Brazil, unlocking new business and climate-aligned opportunities.”
“Our mission to accelerate the transition of the Brazilian economy towards a more productive and positive economy for climate, nature and people is fully aligned with this innovative initiative. The Nature Investment Lab platform fosters collective learning, collaboration, and capital mobilization, essential drivers for achieving the scale and systemic impact necessary to confront the urgent environmental and social crises we face”, highlights Marcelo Furtado, Head of Sustainability at Itaúsa Institute.
Climate Ventures Institute and Impacta Sustainable Finance will serve as the Executive Secretariat for this initiative.
About the Nature Investment Lab
The Nature Investment Lab is a private sector-led collaborative effort to enhance the investment ecosystem for Nature-Based Solutions in Brazil, aiming to support the country’s National Determined Contribution (NDCs) under the Paris Agreement through innovative and scalable nature-based solution projects. The Lab is a testament to Brazil’s commitment to environmental leadership, fostering partnerships across public and private sectors to achieve substantial climate and nature action outcomes.
About the founders:
BB – With over 120,000 employees worldwide and over 5,000 service points in the country, Banco do Brasil cares about sustainability, with public commitments for a more sustainable future, with bold goals for 2030 and aligned with the Sustainable Development Goals and the Paris Agreement. We support our customers, partners and society in the transition to a greener and more inclusive economy, with outstanding actions in sustainable credit, carbon market, ESG fundraising and actions in favor of diversity and social inclusion. BB is recognized as one of the most sustainable banks in the world in several sustainability indexes, ratings and rankings, such as Global 100, Selo Terra Carta, DJSI, IDiversa and others. The Bank is also part of the UN Global Compact, since the initiative arrived in Brazil in 2003. Recently, BB became an ambassador for 3 Human Rights movements of the UN Global Compact Brazil: Elas Lideram; Salario Digno and Raça é Prioridade. In June 2024, Banco do Brasil’s Sustainable Credit Portfolio reached a balance of R$358.4 billion, an increase of 11% in 12 months. Of this amount, R$150 billion was allocated to social businesses. BB’s renewable energy financing portfolio exceeded R$15.4 billion in June 2024 (compared to R$13.2 billion in March 2023), an increase of 16.6% in 12 months. The Bank has a balance of R$1.4 billion in its bioeconomy portfolio in the Legal Amazon, considering only Amazonian products. At the end of the first half of the year, more than 670 thousand hectares were preserved in carbon projects, using the avoided deforestation methodology (REDD+).
BNDES – The Brazilian Development Bank (BNDES) is the Federal Government’s main instrument for long-term financing and investment in all segments of the Brazilian economy. The Bank operates throughout the Brazilian territory, and supports entrepreneurs of all sizes, including individuals, by financing investments, underwriting securities, providing guarantees, and granting non-refundable funds. BNDES focuses on positive social, environmental, and economic impact, always taking into consideration the potential to generate jobs, income, and social inclusion for Brazil. Encouraging innovation, regional development, and social and environmental development are the Bank’s priorities.
GFANZ – The Glasgow Financial Alliance for Net Zero (GFANZ) is a global coalition of financial sector net-zero alliances working together to support the world’s transition to net-zero emissions by 2050. Through the net-zero alliances, GFANZ has united over 700 institutions across the financial sector, including banks, asset owners, asset managers, financial service providers, and investment consultants, spanning 50 jurisdictions and representing 40% of global private financial assets. To help unlock transition investment in developing economies, GFANZ regional networks work to support capital mobilization, expand participation, and reflect the diverse needs of financial institutions around the world.
Institute for Climate and Society (iCS) – is a philanthropic organization that supports the fight against climate change. It focuses on Brazil through the use of a wide range of approaches and tools that range from institutional and financial support to non-profit organizations. This includes support to develop technical and scientific research, the formation of networks, and the development of capabilities in the different economic segments of Brazilian society.
Itaúsa Institute – The Itaúsa Institute is part of the holding’s sustainability strategy and ESG vision, with the aim of accelerating the country’s economic transformation towards a productive and positive economy for the climate, nature and people. Created in 2023, the Institute works on two strategic fronts: environmental conservation and productivity & sustainability. To this end, it supports organizations with initiatives capable of being scaled or that act at the frontier of knowledge, through direct investment or co-investments with philanthropic partners.
Climate Ventures Institute – Climate Ventures Institute acts as an orchestrator of Brazil’s climate innovation ecosystem, broadening access to knowledge and market insights while strategically coordinating key stakeholders to accelerate the just transition toward a regenerative and low-carbon economy.
Impacta Sustainable Finance – Impacta is a consultancy on sustainable finance dedicated to catalyzing investments by providing comprehensive data analytics, market intelligence, and facilitating collaborative initiatives towards impact-driven goals. Our mission is to support decision-makers in allocating capital to businesses that align with climate-positive, environmentally sustainable and socially inclusive initiatives, contributing to a more sustainable and equitable future.