| Implementing partner: ERM |
| Consortium Partners: KPTL |
| Implementation period: May 2025 - March 2027 |
| Sector: Nature |
Brazil is home to the largest area of tropical forests in the world, covering over 58% of its territory. However, the country faces major environmental challenges due to unsustainable land use. Over the past 30 years, more than 70 million hectares have been deforested, mainly for agricultural expansion. Deforestation is now the leading source of greenhouse gas emissions in the country, accounting for nearly half of Brazil’s total emissions. In 2022 alone, it was responsible for around 1.11 billion tons of CO₂ equivalent.
Achieving Brazil’s Nationally Determined Contribution (NDC) – which targets a 59% to 67% reduction in emissions by 2035 – will require bold action in the land use sector, including zero deforestation and the restoration of 12 million hectares of degraded lands. To meet this goal, Brazil must make the forest sector economically viable, supported by effective public policies and financial incentives.
In this context, the project directly contributes to the objectives of PLANAVEG – the National Plan for Native Vegetation Recovery, by promoting large-scale restoration of native ecosystems. The initiative aims to strengthen governance, develop innovative financial mechanisms, and mobilize both public and private capital. It also supports the implementation of existing public policies and creates economic value for standing forests, helping Brazil achieve its climate and biodiversity goals.
The overarching impact goal of this project is to contribute to the mobilization of financial resources to unlock investments in large-scale, sustainable restoration of native vegetation in Brazil. By creating enabling conditions and tackling persistent barriers, the project seeks to ensure long-term financial sustainability for reforestation efforts, aligned with the national target of restoring 12 million hectares under PLANAVEG- the National Plan for Native Vegetation Recovery.
Private sector engagement remains limited due to high investment risks, lack of tailored financial mechanisms, and weak coordination in policy implementation. This project addresses these barriers by proposing innovative financial structures, improving alignment among public and private stakeholders, and strengthening the governance and transparency of resource allocation.
By fostering transformative change, the project contributes to a resilient and inclusive restoration economy in Brazil. It is aligned with the broader vision of PLANAVEG and Brazil’s climate and biodiversity commitments. Ultimately, the project aims to catalyze long-term, sustainable investment flows into native vegetation recovery while addressing key environmental, economic, social, and institutional challenges associated with landscape-scale restoration.
