Brazil is set to launch a groundbreaking blended-finance auction aimed at mobilizing up to $2 billion for large-scale land restoration—marking a flagship initiative under its Eco Invest Brazil program. The effort is designed to rehabilitate degraded pastures, accelerate ecological transformation, and position Brazil as a global leader in nature-based climate finance.
“It has a huge environmental impact, enormous international appeal, and many people are seeking us,” said Rogério Ceron, Brazil’s Treasury Secretary.
The initiative merges $1 billion in public funding from Brazil’s Climate Fund with a required private sector leverage of 1.5x—bringing in at least $500 million in additional capital. Of this private investment, 60% must come from international sources. With heightened interest expected from global banks and asset managers, the total financing could reach the $2 billion mark, making it one of the world’s largest sustainable land restoration efforts to date.
Targeting the recovery of up to 1 million hectares of degraded land, the auction will serve as a strategic boost to Brazil’s National Program for the Conversion of Degraded Pastures. This initiative, launched in 2023, focuses on restoring soil productivity while curbing deforestation and enhancing climate resilience in agriculture.
A regulatory decree is set to be published this week, giving financial institutions 45 days to submit bids. Banks offering the highest private leverage ratios will be selected, incentivizing maximum mobilization of private capital into regenerative land-use practices.
The model reflects a growing trend in emerging markets: using public capital as a catalyst to de-risk and unlock large-scale climate investment. The auction is expected to attract institutional players aligned with climate impact and natural capital preservation, reinforcing Brazil’s credibility as a steward of both environmental assets and innovative finance mechanisms.
By combining environmental ambition with financial innovation, the Eco Invest Brazil auction could become a replicable blueprint for climate-aligned investment strategies across the Global South.
