# Brazil Allocates R$28.3 Billion From Sustainable Bonds

*Government directs 60% of proceeds to environmental spending and 40% to social programs, including renewable energy, poverty reduction and biodiversity protection*

- Published: 2026-11-11
- Section: Insights
- Tags: Brazil green bonds, Brazil sovereign sustainable bonds, Brazilian ESG bonds
- URL: https://brazilstockguide.com/insights/brazil-allocates-r28-3-billion-from-sustainable-bonds/

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**By Brazil Stock Guide –** Brazil’s federal government has completed the allocation of R$28.3 billion in net proceeds raised through three sovereign sustainable bond offerings in international markets since 2023, according to the National Treasury’s 2026 Allocation and Impact Report released Tuesday (Nov. 10).

The government directed R$17 billion, or 60% of the total, toward environmental expenditures, while R$11.3 billion, representing the remaining 40%, was allocated to social programs. The three bond offerings — Global 2031, Global 2032 and Global 2033 — collectively raised US$5.5 billion.

The completion of the allocation process accounts for all net proceeds from the three international debt issuances. Eligible expenditures include renewable energy development, biodiversity conservation, poverty reduction, food security and improvements in basic sanitation.

Brazil’s sustainable sovereign bonds are debt instruments designed to finance or refinance expenditures meeting predefined environmental and social criteria. Their proceeds must be allocated in accordance with the Brazilian Framework for Sustainable Sovereign Bonds.

#### Renewable energy and poverty reduction lead allocations

Renewable energy and anti-poverty initiatives accounted for significant portions of the resources allocated under the Global 2032 and Global 2033 bonds.

For Global 2032, renewable energy represented 38.9% of the total allocation, followed by poverty reduction programs at 36%.

Under Global 2033, poverty reduction received the largest share at 20%, while terrestrial and aquatic biodiversity conservation accounted for 17.5%. Renewable energy projects represented another 15.8%.

Environmental spending also covered greenhouse gas emissions reduction, cleaner transportation, water resource management, climate adaptation, solid waste management and circular economy initiatives.

Social expenditures included food security, sanitation expansion and programs supporting the rights of Indigenous communities and rural women.

Among the initiatives covered by the allocations were Bolsa Verde, which provides financial support to vulnerable families living in environmental conservation areas, and the Food Acquisition Program (PAA), which purchases agricultural products from family farmers to support food security and local economic activity.

Solar energy projects were also included among the eligible expenditures.

#### Treasury details allocations across three bond offerings

The Treasury report provides a breakdown of the R$28.3 billion in net proceeds across the three sustainable bond issuances.

The Global 2031 bond accounted for R$9.62 billion in allocations, including R$5.77 billion for environmental expenditures and R$3.85 billion for social initiatives. The full allocation had already been disclosed in the Treasury’s 2025 report.

Global 2032 accounted for R$10.83 billion, comprising R$6.5 billion in environmental spending and R$4.33 billion in social expenditures. The latest report documents the remaining R$3.8 billion that had not previously been reported.

The Global 2033 issuance contributed R$7.8 billion, divided between R$4.68 billion in environmental allocations and R$3.12 billion in social spending. The 2026 report provides the complete allocation of that issuance’s proceeds.

The figures reflect eligible government expenditures and program disbursements rather than commitments to entirely new projects.

#### Climate Fund and BNDES projects included

The Treasury calculated eligible allocations using expenditures paid between January 2023 and June 2026.

These included federal budget spending and disbursements from the National Climate Change Fund, known as Fundo Clima, which is operated by the Brazilian Development Bank (BNDES).

The fund finances projects aimed at reducing greenhouse gas emissions and strengthening adaptation to climate-related risks.

The report assesses the results associated with eligible expenditures against programs and targets established under Brazil’s 2024-2027 Multi-Year Plan, the federal government’s medium-term planning framework.

It also incorporates performance indicators from projects financed through Fundo Clima.

The allocation methodology links sovereign bond proceeds to previously defined spending categories, allowing the government to document how the resources correspond to environmental and social objectives.

#### Independent review supports reporting framework

The 2026 Allocation and Impact Report was prepared by Brazil’s Sustainable Sovereign Finance Committee, coordinated by the National Treasury Secretariat with contributions from several federal government agencies.

The report underwent independent third-party verification and follows principles established by the International Capital Market Association (ICMA), which develops guidelines for international capital markets, including sustainable debt issuance.

The framework establishes requirements for identifying eligible expenditures and reporting on the use of proceeds.

With the publication of the 2026 report, Brazil has documented the full allocation of net proceeds from all three sustainable sovereign bond offerings issued since 2023.

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Source: Brazil Stock Guide, https://brazilstockguide.com/insights/brazil-allocates-r28-3-billion-from-sustainable-bonds/