By Brazil Stock Guide – BNDES, Brazil’s state-owned development bank, selected seven investment funds to receive up to R$4.3 billion in capital from its investment arm BNDESPar, marking one of the largest public-backed climate investment initiatives ever structured in Brazil. The winners include heavyweight asset managers such as Pátria Investimentos, Vinci Partners, EB Capital, Mombak and Generation, spanning both equity and credit strategies aimed at ecological transition, industrial decarbonization and nature-based solutions.
Launched in September 2025, the climate call attracted 45 proposals from domestic and international managers. The final selection includes five equity funds and two credit funds, all of which are now entering the due diligence phase ahead of final investment approvals. According to BNDES, the public commitments are designed to serve as anchor capital, with the potential to mobilize an additional R$16.2 billion in private resources across the Brazilian market.
Under the Ecological Transformation track, selected equity vehicles include the Catalytic Transition Fund Brazil, with up to R$1 billion from BNDESPar; EB Clima II – Energy Transition & Decarbonization, with up to R$500 million; and Generation Just Climate Brazil, which may receive up to R$800 million. On the credit side, Vinci Climate Solutions Credit Fund and FIDC Clima Riza Farma were chosen, each eligible for up to R$500 million in commitments.
The Nature-Based Solutions segment features two reforestation-focused equity funds: Pátria Latam Reforest Fund I and Amazon Reforestation Fund II, managed by Mombak, each with potential BNDESPar investments of up to R$500 million. Capital from these vehicles will be deployed exclusively in Brazil, targeting large-scale ecosystem restoration in the Amazon, Cerrado and Atlantic Forest, alongside projects linked to circular economy, biofuels, green hydrogen and emissions-reduction technologies.
“BNDES is assuming a strategic role by anchoring funds in areas where private capital still faces structural barriers,” BNDES President Aloizio Mercadante said in a statement. Internally, the initiative is seen as a shift in how the development bank deploys capital — leaning more heavily on market-based instruments to scale climate investment, crowd in private players and position Brazil as a central destination for long-term green finance.
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