Brazil is set to launch a groundbreaking $2 billion auction aimed at restoring 1 million hectares of degraded land, marking a significant step in its ecological transformation agenda. The initiative, part of the Eco Invest Brazil program, combines $1 billion in public funds from the Climate Fund with a 1.5x private capital leverage requirement, targeting substantial international investment.
Under this blended finance model, financial institutions are expected to inject at least $500 million in private capital, with 60% sourced internationally. The auction will focus on rehabilitating degraded pastures, aligning with Brazil’s broader ecological goals and the National Program for the Conversion of Degraded Pastures, which aims to enhance food production without increasing deforestation.
Treasury Secretary Rogério Ceron emphasized the program’s scalability, positioning it as a cornerstone of Brazil’s ecological transformation. The initiative is expected to attract global institutional capital, setting a precedent for large-scale, climate-aligned investment in emerging markets.
This move is part of Brazil’s broader strategy to mobilize resources for climate resilience, including partnerships with international institutions like the World Bank Group to support the Climate Fund and the Ecological Transformation Plan.
The auction is set to commence with a regulatory decree to be issued this week, giving financial institutions 45 days to submit proposals. The banks offering the highest private leverage will win the auction, potentially doubling the public investment and significantly advancing Brazil’s land restoration efforts.
If successful, this initiative could become the world’s largest land-restoration program, offering a model for other nations seeking to integrate ecological transformation with sustainable development.
