Brazilian forest restoration company re.green has received R$80 million ($15.6 million) from the Climate Fund managed by the Brazilian Development Bank, in a groundbreaking transaction that marks the country’s first application of a biodiversity label to a restoration project.
The operation, enabled by a private guarantee from Bradesco and structured with ESG advisory from Bradesco BBI, has been awarded a “Dark Green” rating by S&P Global — the highest possible under the international Shades of Green methodology.
The rating signals alignment with sustainable finance frameworks established by International Capital Market Association, Loan Market Association and International Finance Corp.’s Biodiversity Finance Reference Guide.
Pioneering Model for Climate and Biodiversity
The financing supports restoration activities across more than 16,000 hectares of degraded land in Brazil’s Atlantic Forest and Amazon biomes. These regions are critical to global climate regulation and biodiversity protection.
“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 re.green CEO Thiago Picolo. “It’s a replicable model to transform nature into essential infrastructure for the country.”
The deal is the first disbursement from the Arco da Restauração program since re.green signed the inaugural financing agreement a year ago.
It also represents the first time a biodiversity-focused company has accessed the Climate Fund under a framework guided by international standards.
Boosting Nature-Based Solutions
BNDES President Aloizio Mercadante emphasized the significance of the operation in leveraging federal resources to combat climate change.
“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,” Mercadante said. “It’s a clear demonstration of the strength of this Fund, made available by President Lula and the Federal Government.”
The financing structure is designed to mitigate risk through multi-party participation, a strategy intended to enhance investor confidence in ecological restoration as a viable asset class.
“At Bradesco BBI, 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.
Direct Climate Impact and Community Benefits
The R$80 million will support re.green’s first contract dedicated to the generation of high-integrity carbon credits.
The program includes soil preparation, planting and maintenance of native species — some of them threatened — and monitoring via drones and LiDAR technology. It also emphasizes community engagement.
To date, re.green has restored more than 26,000 hectares across the Amazon and Atlantic Forests, planting over 4.5 million seedlings from more than 80 native species through a network of 29 local nurseries.
Field activities have created over 200 direct jobs and provided training to nearly 300 individuals in seed collection, fire prevention, and stingless beekeeping.
The project adds to re.green’s growing list of accolades, including an AAe rating from global carbon credit agency BeZero Carbon, placing it among the world’s most highly rated for climate integrity.
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