Investment Opportunities in the Agri-food Sector in Brazil
Climate Bonds Initiative Report Highlights Path to Sustainable Agriculture
London, 09/11/2023, 9AM — Insights into sustainable investment prospects in the Brazil agri-food sector and the current scenario in the agriculture industry are highlighted in the "Investment Opportunities: Agri-food sector in Brazil" report, to be launched on November 9 at the Climate Bonds CONNECT 2023 Global Conference, in London.
The report presents a comprehensive framework and case studies to help investors navigate the transition towards a net-zero, climate-resilient future while addressing the critical issues of climate change and biodiversity loss. The publication is funded by the Gordon and Betty Moore Foundation through The Finance Hub, which was created to advance sustainable finance.
The agribusiness sector represents 25% of Brazil's GDP, being one of the most important sectors in the country, while is the most significant source of gross emissions. Recent innovations in Brazilian agri-food financing have broadened financial and capital market opportunities. This trend is set to continue, as agriculture remains a critical sector for the country’s economy, contributing to social justice and overall welfare. In 2020, Climate Bonds estimated US$ 163bn investment potential for agriculture up to 2030.
Empowering Investors for a Sustainable Future
The importance of recognising credible transition plans is one of the highlights of the study, which provides recommendations on core activities, reviews, and disclosure requirements for companies.
Furthermore, the report reviews sustainable debt instruments that can assist those in the Brazilian agri-food sector in transitioning to net zero. These instruments empower investors with environmental and climate mandates to identify entities eligible for capital investment while inspiring a broader range of companies to embark on their transition journey.
The report also exemplifies the use of Climate Bonds' screening toolkit in Brazil’s agri-food sector, presenting case studies and examining financial instruments, barriers, challenges, and solutions.
Sean Kidney, CEO & Co-Founder, Climate Bonds Initiative
"This report showcases the tremendous potential of the agri-food sector to drive sustainable development in Brazil, as it provides opportunities for investment for sustainable agriculture in the region. The study offers a comprehensive framework for the sector’s transition with pertinent case studies and a welcome development for the region’s market to guide investors through the complexities of climate-resilient investments."
The Investment Opportunities in Agri-food Sector in Brazil serves as a vital resource for investors seeking sustainable opportunities in the agri-food sector while contributing to a greener, more climate-resilient future. It highlights the critical role that credible transition plans play in addressing climate change, biodiversity loss, and other environmental challenges.
For more information and to access the full report, click here.
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For more information, please contact:
Communications Officer for Latin America & the Caribbean
+55 61 99248-7070
Senior Communications & Digital Manager,
Climate Bonds Initiative.
+44 (0) 759 332 0198
Notes for journalists:
About Climate Bonds Transition Framework: Climate Bonds Initiative is leading the charge in developing science-based tools and guidance for various sectors, including agriculture, to facilitate the transition to a net-zero future. The entity-level transition framework introduced by Climate Bonds represents a significant shift from project-specific criteria to a holistic, entity-wide approach. Major Brazilian agri-food companies, including Syngenta and Amaggi, have integrated transition plans into their sustainability reporting, setting standards for the industry.
Agri-Food Transition Programme: In 2021, Climate Bonds launched the Agri-food Systems Transition Programme (ASTP), a part of its wider transition program. The Climate Bonds Agriculture Criteria, originally developed in 2019, have been updated to include transition pathways and address issues such as biodiversity loss, water and waste management, circularity, and just transition under the Agri-food Transition Programme. The program's goals included establishing a shared understanding of climate-resilient transition pathways and facilitating financial instruments for demonstration purposes in agri-food systems. Relevant sector criteria development began in 2023, with Crop and Livestock Production, and and Deforestation and Conversion Free Sourcing first in development (scheduled to be available for public consultation in the beginning of 2024).
About the Climate Bonds Initiative: Climate Bonds is an international organisation working to mobilise global capital for climate action. Climate Bonds promotes investment in projects and assets needed to rapidly transition to a low-carbon and climate-resilience economy. Visit www.climatebonds.net.