São Paulo-based impact think tank Climate Ventures is putting in motion several catalytic vehicles to mobilize capital for Brazilian nature preservation and green economy. Its newest is the Financial Instrument for Climate Justice, which will provide concessional capital to cooperatives and community businesses in the Amazon and other strategic bioeconomy regions.
Climate Ventures’ goal is to raise an initial $3 million to $5 million and make three investments in the first half of the year.
Funds can be used flexibly to cover working capital or equipment needs. Climate Ventures will pair capital with technical assistance. The aim is to also bring in philanthropic funding to improve basic infrastructure and services, like water and energy access, that not only improve businesses’ chances of success but support the wider community.
The facility aims to support businesses that are Indigenous and Quilombola-led, the latter representing descendants of enslaved Afro-Brazilians.
“These are small investments, but they require agility and a governance structure where the community itself is the protagonist in deciding how the resources will be invested,” Climate Ventures’ Daniel Contrucci said.
Climate Ventures launched the facility with Sitawi, the BMW Foundation, Fundo Vale, the Institute for Climate and Society and Fundação Grupo Boticário at COP30 in Belém, Brazil.
Blended climate finance
Climate Ventures also heads the Brazil Restoration and Bioeconomy Finance Coalition, a public-private coalition that is working to mobilize $10 billion by 2030 forest restoration and bioeconomy projects. The initiative has set a goal of protecting and restoring at least 12 million acres of forestland, sequestering a gigaton of carbon by 2050, and directing $500 million to Indigenous and other underserved communities.
Contrucci says the coalition has reached half of its goal with backing from Régia Capital, BTG Pactual, development banks and other private financial institutions.
The blended-finance facility includes a senior tranche for commercial investors concerned about “the need to adjust the risk-return matrix for new economy businesses,” Contrucci explained.
Climate Ventures also oversees the Nature Investment Lab, an initiative focused on unlocking capital and promoting a positive regulatory and political environment for biodiversity and natural resources investment. Nature Investment Lab was also supported by the Glasgow Financial Alliance for Net Zero, which underwent a major restructuring last year following a string of high-profile departures.
Green wave
Contrucci emphasizes the need to raise awareness among traditional investors on investment opportunities in the bioeconomy. One way Climate Ventures is doing this is through the Onda Verde, or “Green Wave” platform, which vets potential investment opportunities in eight sectors — agriculture, forests, energy, finance, mobility, industry, water and sanitation — that are aligned with a net-zero by 2050 goal.
It applies 13 “cross-cutting lenses,” including the bioeconomy, circular economy, climate justice, and nature-based solutions. Contrucci says the taxonomy was designed with a “market-oriented perspective” to encourage interest from investors.
“For each of these activities, there is a business pipeline where the platform actively seeks solutions. On the other end, there are investment funds with impact theses aligned with this taxonomy,” he explained.
Among the validated projects are Lemon Energia, a Brazilian climate-tech company that democratizes access to solar energy for small and medium-sized businesses, and ventures working in regenerative agriculture, non-timber forest products, and biotechnology.
Onda Verde, which was launched two years ago, has become the official platform for decarbonization solutions for the UN Global Compact.
