Climate Bonds Initiative and Agricultural Green Bonds market development in Brazil


Brazilian farmers seek alternatives to develop new instruments in the green securities market to finance low carbon projects. For that, the Brazilian Confederation of Agriculture and Livestock (CNA) held a meeting with the Climate Bonds Initiative (CBI) in Brasília. CBI is an international organization that works to promote long-term capital markets through “green” financial instruments, such as Green Bonds.

In the meeting, CBI’s Executive Director, Justine Leigh-Bell, discussed Green Finance Opportunities in Brazil, while CNA’s specialists presented the farming practices of each sector and some initiatives with financing potential.

Justine Leigh-Bell

In addition, CNA specialists presented the work done by the entity, the profile of producers and the financing mechanisms used more frequently by the agricultural sector. The initiatives discussed were related to irrigation, agricultural policy, international cooperation, and specific practices in beef, poultry, swine, coffee, and forestry farming.

According to Gabriela Coser, economics adviser at CNA, the partnership with CBI will allow for the identification of new investment opportunities in Brazilian agriculture. “Brazil has a great potential, mainly because it is an example to the world in sustainable production,” she said.

“CNA will lead a mapping of initiatives with potential to use instruments as Green Bonds. We will also map the low carbon practices already adopted by farmers, but that don’t have financial incentives or benefits yet. The intention is to boost sustainable practices and the funding for it. We are working with partners to attract international and domestic investments to these initiatives,” said Gabriela.

Gabriela Coser

According to Ana Lígia Lenat, CNA’s specialist in poultry and pig farming, there is an excellent opportunity for such initiatives in those sectors.

“We already have technologies that treat waste, transforming it into products with commercial value and reducing the environmental impact of the activity. However, there is a lack of funding to allow the application of these technologies on smaller farms. Today, in some regions, what we consider bottleneck for the increase of production can become an alternative of income for pig farmers,” she said.

Green bonds are an excellent opportunity for rural producers because they are sources of differentiated financing as they have the green feature that focuses on sustainable products.

Another example is the generation of renewable energy within rural properties. “CNA works to facilitate access to this type of investment, reduce bureaucracy and improve the standards that regulate this sector in Brazil,” said Maciel Silva, CNA’s specialist in forestry.

For, Thatyanne Gasparotto, Head of CBI for Latin America, Brazil has great potential for the development of the green bond market. “The annual report on the Green Bonds market has a specific section that talks about the potential of Brazilian agricultural sector. This is an excellent opportunity to connect with other emerging countries, increasing capital flows and, at the same time, positioning Brazil as a global leader in sustainable agriculture achieving scale through green finance. ”

Thatyanne Gasparotto

In 2018, the CBI was one of CNA’s partners in the seminar “Agro em Questão (Agriculture in Question): Financing Agricultural Sector in Brazil’s Agribusiness”. The Organization participated in the panel that discussed alternative agricultural financing.