# Banco do Brasil, KfW Plan €100 Million Amazon Bioeconomy Loan *Agreement announced at COP31 aims to expand sustainable financing for small farmers, Indigenous communities and businesses across Brazil's Amazon region* - Published: 2026-11-11 - Section: Insights - Tags: Amazon bioeconomy financing, Banco do Brasil sustainable credit, KfW Brazil partnership - URL: https://brazilstockguide.com/insights/banco-do-brasil-kfw-plan-e100-million-amazon-bioeconomy-loan/ ![Banco do Brasil Agrishow credit](https://i0.wp.com/brazilstockguide.com/wp-content/uploads/2025/08/Banco-do-Brasil-divulgacao.jpg?fit=800%2C450&ssl=1) **By Brazil Stock Guide – Banco do Brasil (B3: BBAS3)** and Germany’s state-owned development bank KfW are advancing plans for a €100 million financing operation to support sustainable economic activities in Brazil’s Amazon region, expanding a partnership aimed at linking biodiversity conservation with income generation. The banks formalized a joint declaration on Wednesday, November 11, during the COP31 climate summit, according to information released by Banco do Brasil. The proposed transaction, part of the Brazil-Germany Financial Cooperation framework, would refinance Banco do Brasil lending operations supporting sustainable bioeconomy supply chains. The initiative, known as *Sustainable Bioeconomy Production Chains Promotion II*, targets small-scale producers, family farmers, traditional communities, Indigenous peoples, cooperatives, and micro, small and medium-sized enterprises. #### Financing Amazon’s Sustainable Economy The proposed €100 million facility would support agricultural and commercial activities that generate economic value from biodiversity while promoting responsible land use and environmental preservation. Eligible sectors include açaí, Brazil nuts and babaçu production; agroforestry systems involving cocoa, coffee and cupuaçu; sustainable fishing and tropical aquaculture; tropical fruit and vegetable cultivation; and timber production from sustainable plantations established on degraded land. Banco do Brasil intends to channel financing through existing agricultural and sustainability credit programs, including Pronaf Bioeconomia, Pronaf Agroecologia, Pronaf Mulher, RenovAgro, InovAgro, ModerAgro, PCA, FCO Verde and Pronamp. These credit lines serve different segments of Brazil’s rural economy, from individual family farmers to cooperatives and smaller businesses involved in sustainable production and processing. José Ricardo Sasseron, Banco do Brasil’s vice president for Government and Sustainability, said Amazon communities must play a central role in the transition toward a low-carbon economy. “When producers have the conditions to invest in sustainable activities and turn natural wealth into income, the benefits go beyond the credit operation: they strengthen the local economy, create new opportunities and bring development and conservation closer together. This is the connection we seek to expand through the partnership,” Sasseron said. #### Partnership Builds on €50 Million COP30 Agreement The proposed transaction would double the lending volume announced at COP30 in November 2025, when Banco do Brasil disclosed a €50 million financing arrangement with KfW. That earlier initiative also included a €4.5 million grant from Germany’s Federal Ministry for Economic Cooperation and Development (BMZ), intended to support counter-guarantees and technical assistance. According to Banco do Brasil, the initial program benefited more than 4,500 families, including small producers, family farmers and traditional communities, with a particular focus on the Amazon. Under the new arrangement, Banco do Brasil would be the borrower and would oversee loan origination, eligibility assessments and allocation of qualifying credit operations. KfW would act as the financing institution and supervise project monitoring on behalf of the Brazil-Germany Financial Cooperation framework. The €100 million operation remains subject to structuring following the joint declaration, rather than representing a completed disbursement. #### Environmental Safeguards and Lending Restrictions The financing program incorporates environmental and social eligibility criteria established by both institutions, alongside internationally recognized safeguards. These include Brazil’s Forest Code, Banco do Brasil’s Social, Environmental and Climate Responsibility Policy, International Finance Corporation standards and conventions of the International Labour Organization. The framework excludes financing for cattle ranching, soybean cultivation, oil palm production and large monoculture operations exceeding 500 hectares. Activities involving areas illegally deforested after 2008 will also be ineligible. The restrictions are intended to direct financing toward economic activities compatible with biodiversity protection and sustainable land management. #### Bioeconomy Becomes a Focus of Sustainable Credit The expanded partnership aligns with Banco do Brasil’s bioeconomy strategy, which emphasizes financial inclusion, sustainable rural production and economic opportunities linked to biodiversity. The initiative also reflects the role of development finance institutions in supporting agricultural transitions that combine climate mitigation with local economic development. For Banco do Brasil, the planned financing offers an opportunity to expand its sustainable agricultural credit portfolio while strengthening its participation in Brazil’s environmental financing agenda. The operation would extend an existing international financing relationship focused on producers and communities whose livelihoods depend on the sustainable use of natural resources, particularly in the Amazon. --- Source: Brazil Stock Guide, https://brazilstockguide.com/insights/banco-do-brasil-kfw-plan-e100-million-amazon-bioeconomy-loan/