Brazil’s government, led by President Luiz Inácio Lula da Silva, is aiming to raise $2 billion for sustainable projects with a newly announced auction under the Eco Invest Brazil program, focusing on the recovery of degraded pastures.
Brazilian Treasury Secretary Rogério Ceron said the initiative could launch the world’s largest land restoration program, significantly boosting the country’s environmental leadership.
“It has a massive environmental impact, enormous international appeal, and strong interest from global investors,” Ceron told Reuters ahead of the official announcement. “In the best-case scenario, we aim to recover around 1 million hectares of degraded land.”
Eco Invest Brazil: Blended Finance Model for Sustainability
The new auction is part of the “blended finance” framework within Eco Invest Brazil, which strategically combines public and private capital to lower financing costs, reduce currency exchange risks, and stimulate sustainable investment across Brazil’s private sector.
The formal announcement will be made jointly by Brazil’s Ministries of Finance, Agriculture, and Environment. A government decree regulating the auction process is expected this week, with banks given a 45-day window to submit their financing proposals.
Climate Fund to Provide Catalytic Capital
Although the government has not disclosed the exact investment figures to maintain fair competition, Ceron confirmed the auction will offer approximately $1 billion in catalytic capital from Brazil’s Climate Fund. Financial institutions competing will be required to demonstrate at least 1.5 times leverage in private capital, aiming to attract at least $500 million in additional private-sector investment.
If successful, the auction could raise $1 billion in public resources alongside $1 billion in private investment, effectively doubling the financial backing for sustainable projects.
At least 60% of the leveraged capital must originate from foreign investors, with up to 40% coming from domestic sources.
Boost for Brazil’s National Land Recovery Programs
The Eco Invest auction aligns with Brazil’s broader ecological transformation plan and supports the National Program for the Conversion of Degraded Pastures, launched in 2023. This program focuses on restoring low-productivity lands and increasing agricultural output without contributing to deforestation.
By mobilizing both international and domestic financing, Brazil is positioning itself as a global leader in climate action, sustainable agriculture, and green economic growth.
