Key Impact Points:
- First-of-its-kind recognition: re.green’s restoration project is the first in Brazil to receive a biodiversity label, earning a “Dark Green” rating from S&P Global.
- Major funding milestone: R$ 80 million from Brazil’s Climate Fund disbursed via BNDES, backed by Bradesco guarantees and ESG advisory.
- High-integrity impact: Project targets over 16,000 hectares across the Amazon and Atlantic Forests, advancing biodiversity, climate goals, and rural employment.
Brazil’s Climate Fund Supports Biodiversity-Labeled Restoration Deal
Brazilian forest restoration company re.green has secured R$ 80 million from the Brazilian Development Bank (BNDES) via the Climate Fund, marking the first-ever biodiversity-labeled restoration financing deal in the country. The initiative is part of the bank’s Arco da Restauração program and is backed by a Bradesco guarantee and ESG structuring from Bradesco BBI.
The financing will restore more than 16,000 hectares across the Atlantic Forest and Amazon biomes, focusing on climate mitigation, biodiversity recovery, and local development.
“This is a dual milestone: the use of private guarantees to unlock public capital, and the technical recognition of forest restoration as a concrete solution for climate, biodiversity, and territorial development,” said Thiago Picolo, CEO of re.green.
Landmark “Dark Green” Rating
S&P Global Ratings awarded the operation a “Dark Green” classification under its Shades of Green methodology, the highest rating available. The label reflects alignment with global standards like ICMA, LMA, SBG, and the IFC Biodiversity Finance Reference Guide.
“The release of Climate Fund resources for restoration in the Atlantic Forest and Arco da Restauração shows that we have a powerful instrument to finance the recovery of degraded areas in Brazil,” said Aloizio Mercadante, President of BNDES.
A Replicable Model for Nature-Based Finance
The structure, which combines public capital with private risk-sharing, is seen as a scalable model to elevate ecological restoration as a viable asset class.
“We’re proud to structure a transaction that not only brings financial innovation, but also reinforces our commitment to a more resilient and regenerative economy,” said Felipe Thut, Head of Fixed Income at Bradesco BBI.
re.green’s broader efforts span 26,000 hectares of restored forests, over 4.5 million seedlings from 80+ native species, and partnerships with 29 local nurseries. The initiative has created 200+ jobs and trained nearly 300 people in seed collection, fire prevention, and meliponiculture.
Carbon Credits and Community Impact
The new funds will directly support high-integrity carbon credit generation — including soil prep, planting of endangered native species, drone and LiDAR monitoring, and community engagement. The effort aims to build market confidence in nature-based climate solutions as a pillar of Brazil’s emerging green economy.
Related Article: re.green signs a landmark forest restoration project with Microsoft
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