SÃO PAULO — São Paulo became the stage this week for a rare alignment between global development finance and private capital. The International Finance Corporation and Brazil’s BTG Pactual signed a partnership on August 28 designed to channel as much as $1 billion in sustainable investments by 2028, a deal that underscores Latin America’s rising role in shaping the global climate and development agenda.
The agreement brings together the IFC’s decades of experience in financing emerging markets with BTG Pactual’s position as the region’s largest investment bank. Together they plan to direct capital toward projects that can deliver both returns and resilience — from restoring ecosystems in the Amazon to building infrastructure that supports inclusive growth.
From Amazon Bioeconomy to Infrastructure
At the center of the initiative is a commitment to co-finance conservation and social projects while also co-investing in companies, funds, and infrastructure ventures. Special emphasis is placed on nature-based solutions and the Amazon bioeconomy, seen as both a test case and a proving ground for sustainable finance.
Roberto Sallouti, BTG Pactual’s chief executive, said the bank would apply strict technical and financial criteria to ensure investments carry transformative weight.
“The allocation of these resources will be done carefully… so that the investments to be made available by IFC will be used to promote the changes we need for a more sustainable economy,” he noted.
For IFC, the partnership reflects a belief that development outcomes hinge on mobilizing private capital at scale.
“The private sector can and should be a critical player in advancing the climate agenda and driving transformative initiatives that improve lives and promote economic growth,” said Alfonso García Mora, IFC’s regional vice president for Europe, Latin America and the Caribbean.
Why It Matters
Latin America has long been rich in resources but short on investment mechanisms that translate those resources into sustainable growth. The IFC, part of the World Bank Group, has invested in Brazil since 1957 to support urbanization, competitiveness, and resource management. But the scale of today’s climate challenge — from deforestation to inequality — requires partnerships that bridge the multilateral and private sectors.
If successful, the IFC-BTG pact could set a model for how development finance institutions and commercial banks cooperate in emerging markets. For the Amazon in particular, the stakes are global: ensuring that financial flows accelerate conservation rather than destruction.
The Global Lens
For policymakers and diplomats, the deal signals more than just another financing agreement. It raises questions about how private capital can be steered toward the Sustainable Development Goals at a time when public budgets are constrained and climate deadlines loom. The IFC-BTG partnership will be closely watched not only in Latin America but also in Africa and Asia, where similar models could determine whether countries can fund their energy transitions and social development goals.
The São Paulo signing may ultimately be remembered as more than a financial milestone. It is a test of whether international finance can rewire itself fast enough to serve both markets and the planet.
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