Agriculture
Sustainable FinanceState of the Market 2023
Brazil briefing paper

Prepared by the Climate Bonds Initiative

Supported by the Gordon and Betty Moore Foundation

Introduction
Brazilian agriculture, including livestock andagricultural activities, was responsible for 9.8%of the global agricultural sector emissions in
2022.1 Given that methane is its largest source ofgreenhouse gas (GHG) emissions, Brazil is the fifthlargest emitter globally with 91.6% coming fromenteric fermentation of cattle.2 Consequently,
dealing with the environmental impacts of agrifood systems plays a pivotal role in the country’s
transition to net zero, both in terms of climatechange mitigation and adaptation.
The growth of the agriculture sector in Brazil
has resulted in deforestation and change of landuse, which has also increased domestic GHG
emissions.3 The sector, including production
and agribusiness supply chains, now accounts
for nearly 25% of the economy. Despite climatic
adversities and the global economic impact ofthe pandemic, the sector has shown resilienceaccounting for a fifth of GDP growth in the Q1
2023, boosted by delayed harvests.4,5
Sustainable finance is playing an increasingly
important role in the decarbonisation of the
agricultural sector. By the end of H1 2023,
the Brazilian sustainable debt market hadreached cumulative volume of USD33.3bn.6
Brazil was the third largest source of green,social, sustainability, sustainability-linked, andtransition (GSS+) debt in the Latin America
and the Caribbean (LAC) region following Chile(USD47.7bn) and Mexico (USD42bn).
The green theme dominates the Brazil
GSS+ volume (45%) with the more nascentsustainability-linked bond (SLB) market thesecond largest segment (32%). Agriculture,
Forestry and Bioenergy were the most funded
use of proceeds (UoP) categories for green
bonds from Brazilian corporate issuers, andrecent advances in regulation have encouraged
the practice of aggregating smaller projects andassets, bringing them to the sustainable debt
market through asset-backed securities (ABS).

Content
Introduction 2
Brazil’s growing sustainabledebt market 3
Use of Proceeds categories 4
Across the agriculture themes 6
Outlook 7

This briefing provides an update of Climate
Bonds Agriculture Sustainable Finance State of
the Market published in June 2021.7 It focuses onlabelled instruments used to finance projects,
assets, and activities in sustainable agriculture
originating from Brazil, and includes thematic
debt issued between May 2015 and June 2023.

Thematic labels
Green, social, sustainability
and transition
Green, social, sustainability, andtransition bonds offer climate andsocial benefits through their UoP.
The proceeds from the sale of suchbonds are earmarked to support
climate or social expenditures in categories
specified in the issuer’s sustainable financing
framework. Green bonds focus on UoP withclimate or environmental benefits such as
Low-Carbon Energyergy Energy, Low-Carbon

Building, or Low-Carbon Transport.
Bonds bearing the transition label area subset of green and are often issued
by entities operating in hard-to-abate
sectors such as steel, chemical, or
cement. Social categories include
Education, Microfinance, and Support
for Marginalised Communities.
Sustainability bonds include a combination ofgreen and social categories.

Agriculture Sustainable Finance State of the Market 2023 Climate Bonds Initiative

Sustainability-linked
bonds (SLBs)
The UoP of SLBs are general
purpose, i.e., not earmarked forany specific social or environmental purpose.
However, key performance indicators (KPIs)
are selected as areas for improvement overthe lifetime of the bond and time-boundsustainability performance targets (SPTs) are set
to measure their achievement. The achievementof the SPTs is linked to coupon step-ups or
step-downs, or early repayment obligations.

2Brazil’s growing sustainable debt market
The Brazil GSS+ debt market
reached a cumulative
USD33.3bn by the end of
H1 2023 and was the thirdlargest GSS+ debt market in
LAC (after Chile and Mexico).
After a strong performance in 2021 (USD12.2bn),volumes declined in 2022 (USD7.2bn) with
USD2.5bn in deals recorded in the first half of 2023.

Sustainable debt issuances by label
14

12

10

Brazil is the largest source of green bonds in the
LAC region with cumulative volume of USD15.1bn
at the end of H1 2023. Brazil also leads the LAC
market in SLBs (USD10.9bn) and is the only
country in the LAC region to have recordedtransition labelled bonds (USD170m).

Sustainability-linked bonds
Brazil is the largest source of
SLBs in the LAC region withcumulative volume of USD12bn,
representing 36% of theBrazilian GSS+ market and 40.6% of the LAC SLB
market. Non-financial corporate issuers dominate
the market with 94.2% of the volume, followed byfinancial corporates (5.8%). SLBs are the secondlargest segment in Brazil’s labelled debt market,
with most of issuers operating in the materials(31.2%) and financial (14%) economic sectors.
GHG emissions were the target for half of the
KPIs while Corporate Social Responsibility (CSR)
was chosen for 16%, Circular Economy 7.7%, andRenewable Energy 4.3%.

Sustainability

SLB

Transition

6

4
USD Billions

The green theme leads
Brazilian GSS+ issuance with
45.2% of the cumulative total(USD15.1bn). Renewable
Energy and Land Use are thetwo most funded UoP with 56% and 20% of thevolume respectively. The market is dominatedby the private sector with the majority (76.6%)
coming from non-financial corporate issuers andfinancial corporates (13.8%). Development banks(7.8%), and government-backed entities (1.8%)
contributed smaller shares.

Social8

The green theme dominates
Green

Green

2

0
2015

2016

2017

2018

2019

2020

2021

2022

2023

Source: Climate Bonds Initiative

Sustainability

Transition

Sustainability bonds represent
16.2% of the Brazilian labelledmarket, with cumulative
volumes of USD5.4bn.
Renewable Energy is the largest green UoP
category (26%), followed by ICT (16%), Water
Management (13%), Low Carbon Buildings (12%),and Land Use (11%). Social UoP frequently
reference Affordable Infrastructure (34%), Social
Adaptation & Resilience (22%), Equality (11%)
and Employment & Training (11%). Sustainability
deals are predominantly issued by non-financial
corporates (50.7%), financial entities (35.2%), andgovernment-backed entities (13.2%). The recent
commitment from the Brazilian government toprice a USD2bn sustainability bond should boost
this theme in terms of both profile and volume.

Transition bonds accountfor 2% of the GSS+ debt
originating from Brazil. Utility
company Eneva S.A. priced
two deals with cumulative volume of USD670.4m
in 2020. Transition deals originating from Brazil
mentioned in prior reports have been excluded
from this brief because they are pending
screening against Climate Bonds Green Bond
Database methodology.

SocialThe social label represents just
2% of GSS+ bonds originatingfrom Brazil, with cumulative
volume of USD699m. A
USD500m 2029 deal from Banco do Brasil issued
at the end of 2022 was the largest social bondto date. UoP from the deal were earmarked
for Healthcare, Employment Generation,
Microfinance, Affordable Infrastructure, andSocioeconomic Advancement and Empowerment.
Overall, Microfinance and Employment & Training
each received 21% of social UoP, followed byHealthcare (19%) and Affordable infrastructure(17%). Financial institutions are the sole issuer
type, and included two Receivables Certificate(CRI) ABS deals from real estate issuers.

Agriculture Sustainable Finance State of the Market 2023 Climate Bonds Initiative3

Use of Proceeds categories
The Land Use UoP category (encompassing
agriculture, livestock production, and forestry)accounts for 19% of Brazil GSS+ UoP volumes,
second only to Energy (57%). As Bioenergy isa subset of Renewable Energy, Renewable
Energy is within the scope of this brief. Several
entities operating in the Bioenergy sector havealso priced SLBs. Feedstocks for bioenergy
are a common source of Land Use in Brazil.
UoP earmarked for Bioenergy in green andsustainability bonds represents 17.5% of the
cumulative Renewable Energy UoP category.

Social A&R
Green A&R
EqualityGreen

Affordable infrastructure
Food security

SocialMicrofinance

Sustainability

Education
Employment & Training
Healthcare
ICTLand Use: Forestry

Industry

Total Amount (USD)

5.7bn

Number of issuers

9

Number of deals

22

Largest issuer

Use of proceeds by theme

Suzano Austria GmbHLand use
Waste management
Water management
Low-carbon transport
Low-carbon buildings
Renewable energy

Forestry represents the largest
segment of the Land Use UoP
specified for GSS+ bonds
originating from Brazil, withcumulative volume of USD5.6bn.
Proceeds were mostly allocatedfor refinancing of paper and pulp production
operations and sustainable forest management.
Just over half of the 22 bonds issued to date hadtenors of 5-10 years (53.4%), f ollowed 10-20 years(34.6%), with shorter-dated deals of up to 5 years
representing a smaller segment (11.8%).
Hard currencies tend to dominate. Most deals
were issued in USD (82%), followed by BRL (9.3%)
and EUR (8.7%). All Forestry deals received asecond-party opinion (SPO) by either ISS ESG(48.5%), Sustainalytics (25.8%), NINT (25%) or
Bureau Veritas (0.7%).
Bullet UoP bonds account for 92.1% of
cumulative forestry deals, while ABS instruments
represent 7.9%. Two green ABS deals from
EcoAgro were added in 2022, totaling BRL680m(USD136.3m), with maturities in 2027 and 2029
and UoP earmarked for sustainable forestry andbiodiversity management projects.
Under the green label, volume reached USD2.8bn
by H1 2023 with 50.8% of proceeds allocated toforestry projects. Entities operating in the forestry
sector have issued SLBs worth USD2.7bn, with
Suzano Austria GmbH pricing three SLBs witha cumulative volume of USD2.25bn. The KPIs
of those deals target GHG emission reductions,industrial water use, and the inclusion of
women at board level and in positions of seniorleadership. Climate Bonds encourages issuers
to develop KPIs that target all three scopes ofemissions and are material to their business.

0
1
USD Billions

2

Land Use: Agriculture
Total Amount (USD)

2.4bn

Number of issuers

11

Number of deals

15
Arcos Dorados BV

Agriculture is the second
most financed category in theLand Use UoP with cumulative
volume reaching USD2.3bn.
Among the 15 deals priced todate, five were added in 2022
and one in 2023. Green UoP were predominantly
earmarked for efficient machinery, equipment,
and intelligent management systems withincrop production. These were mostly found insustainability bonds (76%) with green bonds
accounting for only 7%, and the remaining
resources from SLB deals by entities operatingin the sector (17%).
Most (93%) of deals received an SPO from
Sustainalytics (84.6%), Resultante (6.4%), NINT
(2.1%), with Bureau Veritas and WayCarbon
accounting for less than 1% each.
Bonds were issued in USD (90.7%) and local
currency BRL (9.3%). Three-quarters had tenors

Agriculture Sustainable Finance State of the Market 2023 Climate Bonds Initiative

4

5

6

7

Source: Climate Bonds Initiative

A USD37.3m sustainability bond from Tanac
was the only one in that theme with green UoPearmarked for forestry. Tanac is one of the world’s
largest vegetable extract producers.

Largest issuer

3

Use of proceeds (H1 2023)
Waste
management
2%

Industry 3%

Land Use
19%

Renewable
Energy57%

Low-carbon building 5%
Low-carbon transport 9%
Water & Sanitation 5%
Source: Climate Bonds Initiativeof 5-10 years, with the remainder shorter-dated
deals of up to five years (25%).
Climate Bonds Certified three ABS deals under
its Agriculture Criteria with cumulative volume of
BRL218.3m (USD40.8m). In 2021, Gaia Securitizadoraissued two Agribusiness Receivables Certificates(CRA) to finance the operations of supply chain
verifier Produzindo Certo, and Ag-tech company
Solinftec.8,9 In 2020, Ecoagro Securitizadora
priced a CRA to finance the expenditures oforganic farm operator Rizoma Agricultura.10
4Banco Bradesco SA’s USD500m January 2022
sustainability bond had a five-year maturity
with UoP earmarked for Renewable Energy, Low
Carbon Building, Water and Sanitation, Waste
Management, Land Use, and Industry sectors.
The deal was the only one to address foodsecurity through its Land Use UoP.
True Securitizadora is a Brazilian entity which
specialises in structuring, fundraising, andinvestment. In 2022, it structured a 5-year, BRL50m(USD9.3m) sustainability CRA for Oakberry Açaí, afast-food franchise. The green UoP were earmarked
for sustainable agriculture and production to
support the small holdings of riverside communities
in the Amazon region, where the company sources
açaí. The social UoP were earmarked for social
adaptation and resilience (A&R) with projects
focused on educational infrastructure and accessto basic services to guarantee the human rightsof the local population such as healthcare, accessto clean water, access to financial services, andthe inclusion of women in health programmes,
training, and decision making.

Land Use: Livestock
Total Amount (USD)

778m

Number of issuers

3

Number of deals

4

Largest issuer

BRF SA

Cumulative volumes of GSS+
debt supporting livestock
UoP reached USD525m in
H1 2023 from two green bonds
and USD1.1bn in SLBs fromentities operating in the sector.
The livestock deals all had tenors of 5-10 years.
SPOs were obtained from Sustainalytics,
ISS ESG, and NINT.
Most of the green UoP was allocated toenergy efficiency in livestock feed, GHG
emissions reduction in production plants, andreforestation projects.
Since the last report, a review of Climate
Bonds livestock Criteria and methodology led
to a reclassification of the UoP of two green
bonds from Agriculture to Livestock: BRF SA(USD563.7m) and Fazenda da Toca (USD4.7m).

Land Use: Bioenergy
Total Amount (USD)

2.4bn

Number of issuers

11

Number of deals

26

Largest issuer

FS Bioenergia

UoP earmarked for
Bioenergy reached acumulative volume of
USD2.2bn split between
USD2.1bn under the greenlabel and USD150m under
the sustainability label, which represents a total
increase of 288% since the 2021 briefing.
SLBs amounting to USD255m were issued byentities operating in the bioenergy sector.

In May 2022 FS Bioenergia, a corn ethanol
producer, priced a two-tranche Climate Bonds
Certified ABS maturing in 2026 and 2029. Eachtranche was BRL371.3m (USD74.4m) and theissuer obtained an SPO from Sustainalytics aswell as certification under the Climate Bonds
Bioenergy Criteria.
Sicredi, one of the largest cooperative financial
institutions in Brazil priced two sustainability
bonds in 2022. The two-tranche deal comprised
one USD110m piece maturing in 2024 and one
USD40m piece maturing in 2025 with bothobtaining an SPO from Sustainalytics. Under
the verifier’s Renewable Energy category,
Sicredi’s UoP will finance wind, solar andbiomass generation and distribution systems
for rural landowners using biomass energy fromagriculture and animal waste through the biodigestion and composting of animal waste.13

Green UoP were mostly earmarked for opex andcapex for corn and sugarcane ethanol plants,
while KPIs from the SLBs focused on circular
economy and CSR activities.
Approximately half the proceeds allocated to
Bioenergy projects had tenors of 5-10 years (55%)
with the remainder up to five years (44.9%). All
16 deals obtained an SPO from Sustainalytics and
NINT or were Climate Bonds Certified. USD was themain currency (49%) followed by BRL (28%) andEUR (24%). The majority were financed by bonds(79.9%), followed by loans (10.4%) and ABS (9.7%).
Since the last agriculture briefing, ten deals werepriced including bonds with UoP earmarked forbioenergy, and SLBs from bioenergy entities:
six green bonds, two sustainability bonds,
and two SLBs.
In March 2022, Brazilian bioenergy company
Raízen issued its first SLB with KPIs pertaining
to land certification and gender diversity.11 The
first KPI increases the number of Bonsucro
certified units from 74% to 94%, which
establishes globally acceptable environmental
and social practices in sugarcane plantations.12
The second KPI increases the participation of
women in leadership positions in the company
from 19% to 30%. Two tranches with maturities
in 2029 and 2032 were issued with a total sizeof BRL1.2bn (USD256m), and obtained an SPO
from Sustainalytics.

Agriculture Sustainable Finance State of the Market 2023 Climate Bonds Initiative

5

Across the agriculture themes
The sustainable finance market
and agriculture
Recent data from System Gas
Emissions Estimation (SEEG)
and Observatório do Clima
indicated that in 2021, about
half (49%) of GHG emissions
in Brazil originated from land
use change sectors and 25% from agriculture
and livestock production.14 This is as a result of
deforestation and forest degradation of large
areas in the Cerrado and Amazonia region, 80%of them being in illegal areas.
The financial market has been pressuring entities
operating in the agriculture sector to deliver
deforestation-free plans, climate targets, andsupport to biodiversity protection and foodsecurity. Investors have pledged to eliminate
investment in activities linked to deforestationand provide finance only to companies
already committed to cutting emissions fromdeforestation activities in their supply chains.15
Ongoing due diligence and traceability activities
from investors should encourage entities
to prepare for new trading regulations thatstrengthen measures to halt deforestationworldwide. In June 2023, The European Union, as
one of the main markets for agricultural exports
from Brazil, introduced the EU Regulation on
deforestation-free supply chains, to ensure thata category of key goods exported or placed on
the EU market must be deforestation free, andthus will no longer contribute to deforestationand forest degradation in the EU and elsewherein the world.16

Local policy developments
Key local policy developments
have also provided a positive
signal to the market on therole of finance to support
sustainable agriculture, given
its strong reliance on thebanking sector.
The Ministry of Agriculture, Livestock and Food
Supply (MAPA) published a report on Guidelines
for the Sustainable Development of Brazilian
Agriculture that established a strategy for making
the Brazilian agriculture and livestock sectors
more sustainable.17 These are supported byinitiatives including The Agricultural Plan (Plano
Safra) and low interest, government-subsidised
credit lines (ABC Plan and ABC+ Plan) for
borrowers operating in the agriculture sector.

Brazilian Sustainable Taxonomy
Brazil started its nationaltaxonomy discussions in
2022, which were led by
the Ministry of Finance.
In September 2023, thegovernment launched an
action plan for its development, and thenpublished a document that is out for public
consultation until the end of October 2023.22,23
The final version of the taxonomy is expected in
2024 with mandatory use from January 2026.
A national taxonomy is a crucial reference guideto ensure that labelled financial instruments are
standardised. This extends to specific criteria
and indicators that can be used to assess the
positive contribution from activities, so that
capital can be effectively disbursed to support
the transition to a sustainable economy
aligned with the goals of the Paris Agreement.

The Plano Safra programme, which has been
Brazil’s primary agriculture policy since 2003,
receives funding from the Federal Government
for registered farmers to make investments in
the industrialisation and commercialisation ofagricultural products. The programme reached
BRL364bn (USD70.7bn) in 2023, its highest
yet.18 The programme encompasses public
policies, credit lines and technical assistanceto producers focused on climate and financial
risk-supporting, climate-aligned production
systems; awarding lower interest rates for
pasture recovery, and awards for producers
demonstrating sustainable practices.
ABC Plan was created in 2010 to support the
reduction of GHG emissions in agriculture andadapt to climate change through a public policy
framework.19 It provides subsidised loans tofoster the implementation of technology and theuse of low-carbon agricultural practices.
The first phase of the plan ended in 2020 having
reached 115% of its voluntary GHG emissions
reduction target through ongoing restoration of
degraded forest areas, management of naturalforests, and the development of integrated croplivestock-forest farming systems. These activities
support the Brazilian commitment to achieve
its Nationally Determined Contributions (NDCs)
under the Paris Agreement.

The precedent was set by the EU and China,
and Brazil aims to follow the example of peers
such as Colombia, Peru, and Mexico, that havelaunched sustainable finance taxonomies, andensure interoperability.
The Brazilian Sustainable Finance Taxonomy
will focus on sectors and environmental
objectives that are material and relevant in
the local context. For example, key sectors
to address climate change mitigation andadaptation include: agribusiness; extractive
industries; manufacturing; electricity andgas; water, sanitation & waste management;
construction; transport; and social services.
Specific criteria for each sector will berecommended by the technical groups, basedon a range of factors.

Securitisation
Securitisation is well established in Brazil andincludes Real Estate Receivables Certificates (CRI)and Agribusiness Receivables Certificates (CRA).
Climate Bonds Brazil sustainable securitisation
state of the market Q3 2022 report highlighted
ABS deals at 3.5% of the Brazilian GSS+ market.24
Securitisation companies have advanced in thelast two years and the thematic ABS market
has gained traction with CRAs for low-carbon
agriculture, forestry, and bioenergy.
Securitisation could increase the volume of GSS+
instruments originating from the Brazilian market
through the aggregation of loans given to support
the the agribusiness transition and deforestationfree supply chains. For this to happen atscale, lenders must reference internationallyrecognised taxonomies and sector criteria in theirlending, encourage borrowers to prioritise green
development, and ensure that they have effective
green tagging set up.

ABC+ Plan was launched as an extension of the
ABC plan, and will run until 2030. The aim is tobuild a more resilient agricultural production
system based on technological and integrated
landscape management.20,21

Agriculture Sustainable Finance State of the Market 2023 Climate Bonds Initiative

6

Climate Bonds Agri-Food
Transition Programme
In 2021, Climate Bonds
launched the Agri-food
Systems Transition
Programme (ASTP), under its
wider Transition Programme.
The overarching goal was
to mobilise global capital for financing thetransition of key sectors of the economy to alignwith a net-zero, resilient, and sustainable future
as well as ensure deforestation and conversion
free agri-food production.25 The programme had
two key outcomes that contribute to this goal:
Outcome 1: to build a common sharedunderstanding, that is rooted in climate science, of
1.5-degree and climate resilient transition pathways(and associated standards) that are consistent
with other food system transition outcomes.26
Outcome 2: to facilitate financial instruments,
including SLBs and loans, transition bonds, andgreen bonds to be issued for demonstration
purposes by public and private sectors, using
common definitions and standards, to finance

The Climate Bonds
Certification Scheme
is the first and onlyinternational science-based
Certified labelling scheme
for debt Instruments,
entities and assets. The Climate Bonds
Standard v4 offers non-financial corporate
entities the opportunity to obtain Climate
Bonds Certification for SLBs. It sets market
best practice in terms of ambitious climate
action, reporting, and disclosure. Developed
together with stakeholders across the market,
it incorporates independent verification
and assurance against an open standard,and evidence-based eligibility Criteria
which screen for the types of infrastructure

credible transition assets, activities, andstrategies in agri-food systems.27
Relevant Sector Criteria development started
in early 2023. Crop Production, Livestock
Production, and Commodity Supply Chains will

investments aligned with the Paris
Agreement. This scheme is underpinned
by rigorous scientific Sector Criteria toensure that Certified bonds and issuers are
consistent with the well-below 2°C targetof the Paris Agreement. Obtaining andmaintaining Certification requires initial andongoing third-party verification to ensure theassets meet the metrics of Sector Criteria.
The Scheme has provided Certification to
hundreds of debt instruments, which amountto over USD270bn as of H1 2023. The integrityof the Standard and Certification Scheme
reassures investors of the ambition andcoherence of the performance targets, together
with the delivery capability of the issuer.

be the first under development and available for
Certification under the Climate Bonds Standard.
The new Criteria will build upon Climate Bonds
existing Agriculture Criteria, which can already be
used to Certify assets and activities.

OutlookBrazil relies on agribusiness for approximately 25%of the country’s GDP.28 Its economic importanceis combined with geopolitical priorities because
the sector provides soft commodities that offer
both domestic and international food security.
At the same time, Food and Land Use (FOLU)(46%) and Agriculture (27%) are the largest
sources of Brazilian GHG emissions accounting foralmost three-quarters of the country’s gross CO2
emissions. Therefore, Brazil must decarbonise thesector to remove the threat that climate change
poses to its food and fibre production. Greenfinance will make a pivotal contribution to theachievement of this goal.
Climate Bonds makes five recommendations
to scale up GSS+ financing for the Brazilian
agribusiness industry.

1. GSS+ bond guarantee
Government guarantees,such as partial-risk or
liquidity guarantees, cande-risk GSS+ debt issues andincrease investor confidence
in repayment. This lowers
the cost of capital for the project and canenable participation by long-term institutional
investors. Guarantees therefore directly increasesustainable finance as they widen the investible
green bond universe.

2. Fast-track approval for green

4. Securitisation

Slow approval processes canlimit development of projects
such as renewable energy
installations. Easing approval
for taxonomy-aligned projects
is a low-cost way to increase
the pipeline of GSS+ deals, and increase investor
confidence in projects.

Local banks must prioritise
lending according to aninternationally recognised,credible green taxonomy andsector criteria. This would
enable them to preference
green lending and encourage borrowers in thereal economy to evolve their activities through agreen lens. The resultant lending should be clearly
identifiable so that banks can aggregate green
loans into larger instruments and recycle thecapital in the debt markets. This may well achieve
cheaper funding costs which could be passed onto
borrowers thus perpetuating the cycle.

3. Sovereign debt
Brazil has recently committed
to pricing a USD2bn sovereign
sustainability bond which will
accelerate the growth of its
green finance market. By theend of H1 2023, nine countries
in the LAC region had priced GSS+ debt, including
Chile (USD37.9bn), Mexico (USD11.6bn), and Peru
(USD6.9bn). A sovereign GSS+ deal signals to key
stakeholders that a government is committed
to supporting environmental and socialtransformation. This can hasten the developmentof market infrastructure and attract crowding infrom the private sector.

Agriculture Sustainable Finance State of the Market 2023 Climate Bonds Initiative

5. Sustainability-linked
bonds (SLBs)
SLBs represent one of thelargest thematic debt market
segments in Brazil, well suitedfor the hard-to-abate sectors
including agriculture. Issuersmust ensure that instruments
reference robust transition plans, and that
KPI’s and SPTs are material and ambitious toestablish credibility.

7Endnotes
1. Climate Trace Inventory. 2023. Emissions map. https://climatetrace.
org/map/63dbbdfd346bb
2. Climate Trace Inventory. 2023. Emissions map. https://climatetrace.
org/map/63dbbdfd346bb
3. Climate Observatory. 2019. Analysis of emissions in Brazil. OC_
SEEG_Relatorio_2019pdf.pdf
4. CEPEA. 2023. Brazilian Agribusiness GDP. https://www.cepea.esalq.
usp.br/br/pib-do-agronegocio-brasileiro.aspx
5. IBGE. 2023. GDP grows 1.9% in Q1, leveraged by Agriculture. https://agenciadenoticias.ibge.gov.br/en/agencia-news/2184-news-agency/
news/37055-gdp-grows-1-9-in-q1-leveraged-by-agriculture
6. Climate Bonds Initiative. 2023. Latin America and the Caribbean
Sustainable Debt State of the Market 2022. https://www.climatebonds.
net/files/reports/cbi_lac_sotm_2022_en__0.pdf
7. Climate Bonds Initiative. 2021. Agriculture Sustainable FinanceState of the Market. cbi-brazil-agri-sotm-eng.pdf (climatebonds.net)
8. Climate Bonds Initiative. 2021. Green CRA Tech receives certificationfrom the Climate Bonds Initiative as the first collective Green CRA
issuance in the world. https://www.climatebonds.net/files/releases/
media_release_gaia_june2021_english_vf_lb.docx_1_0.pdf
9. Climate Bonds Initiative. 2020. Assurance statement. https://www.climatebonds.net/files/files/Ecoagro-Rizoma-pre-issuancestatement-PUBLIC.pdf
10. NINT. 2022. Assessment report. https://www.solinftec.com/wpcontent/uploads/2022/11/Pre-Issuance-CBI-Report-CRA-3-Solinftec20221017-v2.pdf
11. Capital Reset. 2022. Raízen capta até R$ 1,2 bi com meta dediversidade e canaviais certificados. https://capitalreset.uol.com.
br/financas/divida-esg/raizen-capta-ate-r-12-bi-com-meta-dediversidade-e-canaviais-certificados/#:~:text=Finan%C3%A7as%20
Divida%20ESG-,Ra%C3%ADzen%20capta%20at%C3%A9%20R%24%201%2C2%20bi%20com%20meta,de%20diversidade%20
e%20canaviais%20certificados&text=S%C3%A9rgio%20Teixeira%20
Jr.&text=A%20Ra%C3%ADzen%2C%20joint%2Dventure%20
da,R%24%201%2C2%20bilh%C3%A3o

12. BonSucro. 2023. How new European Union legislation will impact
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filer_public/2022/05/23/1o_oferta_publica_de_letras_financeiras_
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15. RaceToZero. 2021. Finance Sector Deforestation Action (FSDA). https://
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and consumption. https://ec.europa.eu/commission/presscorner/
detail/en/ip_22_7444
17. Brazilian Government. 2020. Guidelines for the sustainable
development of Brazilian Agriculture. https://www.gov.br/
agricultura/pt-br/assuntos/noticias/semana-verde-na-alemanha/
Agendaestrategicaingls2.pdf
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br/en/politica/noticia/2023-06/funds-brazils-2023-24-agriculturalplan-reach-brl-364-bi
19. Ministry of Agriculture, Livestock and Food Supply. 2012.
Plano ABC. https://www.gov.br/agricultura/pt-br/assuntos/
sustentabilidade/agricultura-de-baixa-emissao-de-carbono/
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21. Ministry of Agriculture, Livestock and Food Supply. 2021. Plan foradaptation and low carbon emission in Agriculture. https://www.gov.
br/agricultura/pt-br/assuntos/sustentabilidade/agricultura-de-baixaemissao-de-carbono/publicacoes/abc-english.pdf

Prepared by the Climate Bonds Initiative

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Supported by the Gordon and Betty Moore Foundation

Lead author: Sofia Borges
Contributors: Lily Burge, Leonardo Gava
Editorial support: Stephanie Edghill, Caroline Harrison
Design: Godfrey Design, Joel Milstead© Published by Climate Bonds Initiative, October 2023
www.climatebonds.net

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Agriculture Sustainable Finance State of the Market 2023 Climate Bonds Initiative

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