The Brazilian Confederation of Agriculture and livestock of Brazil (CNA) took part in the Climate Bonds Initiative’s Annual Conference, March 5 to 7, in London.
Climate Bonds Initiative, also known as CBI, is a global non-profit institution that fosters long-term funding for projects focused in environmental efficiency, such as carbon emissions reduction.
The Conference brought together representatives from 55 countries around the world to discuss trends in this market and to define and aligned the certification criteria among them all. In 2018, CBI certified assets of 869 issuers totaling US$ 1.2 trillion.
“The conference seeks to consolidate international practices and observe new trends. We can see what the investors are seeking and hear about the experiences that the issuers had”, said CBI representative in Brazil, Julia Ambrosano.
According to Fernanda Schwantes, CNA’s Agricultural Policy Advisor, although most CBI-certified securities were issued in Europe, the US and Asia, there is a great potential for issuing green securities in Latin America.
“There are enormous opportunities to attract these investments to Brazil, particularly in the segments of infrastructure, renewable energy, water management, agriculture and livestock”, said Schwantes.
CBI has projects in Brazil for four years now, mainly in the paper and pulp segments. According to the coordinator of CBI Agro in Brazil, Leisa Souza, the green bonds market has great potential in the country and is an alternative form of financing for the agricultural sector.
“We see farmers benefiting from this instrument as complementary to the traditional sources of financing they have access to, such as rural credit. The agriculture in Brazil is already sustainable, but can become more and more, everyday”, said Leisa.
According to Fernanda Schwantes, CBI is still elaborating the certification criteria (taxonomy) for agriculture and CNA has supported them in order to present all sustainable practices that Brazilian farmers already adopt on their properties.
“The expectation is that investors will apply their funds in Brazil, which will bring an increase in the source and options of financing for various segments and sectors,” she said.