Brazil’s federal government is making $3 billion (BRL 16.5 billion) in subsidised funds available to banks under the second phase of its EcoInvest programme, aiming to restore 1.4 million hectares of degraded land nationwide. The funding will act as a guarantee for new loans directed at regenerative agriculture and reforestation projects.
A jaguar watching a toucan flying among the vegetation of the Amazon forest. AI generated picture.
The latest public call has already drawn interest from 11 banks, following an earlier tender in April that offered $1.8 billion (BRL 10 billion). ‘The financial sector has a great appetite [for carbon projects], as shown by the public call’, said Amaury Oliva, sustainability director at Febraban, Brazil’s largest banking association, during São Paulo Climate Week.
EcoInvest is designed to provide low-cost capital to banks, enabling them to extend their own loans for restoration projects across all Brazilian biomes—the Amazon, Atlantic Forest, Cerrado, Caatinga, Pampa, and Pantanal. This round is expected to unlock up to $5.6 billion (BRL 30.2 billion) in loans for reforestation.
To participate, banks must submit bids of at least $18.5 million (BRL 100 million) and outline how they will leverage the capital, with 60% of the raised funds required to come from international lenders. Projects are evaluated on criteria including the number of hectares to be restored, and eligibility is limited to properties where illegal deforestation occurred before 2008.
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‘The public call was a success … and one of the variables [ranked by the government] is the amount of carbon captured’, said Maria Belen Losada, head of carbon markets at Itaú, Brazil’s largest bank. She added, ‘The call will have a multiplier effect as it combines resources from the government with capital from the banks alongside carbon markets that it can be monetised.’
According to the Institute of Forestry and Agricultural Management and Certification, Brazil has about 100 million hectares of degraded land at varying levels of damage. The EcoInvest programme received technical support from the Inter-American Development Bank and the UK Embassy in Brazil. ‘The UK is proud to support initiatives like Eco Invest, which combine financial innovation with real climate impact… and strengthen sustainable chains on a large scale’, said Stephanie Al-Qaq, UK Ambassador to Brazil.
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Brazil’s $3 billion EcoInvest programme underscores the growing alignment between large-scale land restoration and the rising demand for credible carbon credits. As governments, financial institutions, and international partners channel capital into nature-based solutions, the spotlight is shifting to projects that deliver both environmental impact and socio-economic value. This is precisely where DGB Group stands out. As a publicly listed company on Euronext, we design and implement large-scale restoration initiatives that generate high-quality, verifiable carbon units, supporting biodiversity and local communities alike. The momentum for the next era of carbon offsetting is here—be part of shaping it with us.
