Cumulative GSS+ debt reached USD67.8bn
Luxembourg/ São Paulo, November 7, 2025 – Brazil’s sustainable debt market continued to expand in the first half of 2025, according to the new Brazil State of the Market H1 2025 report released by the Climate Bonds Initiative, written in partnership with ERM/NINT and funded by the LAGreen Fund. The findings highlight Brazil’s growing role as the key sustainable finance hub in Latin America as the country prepares to host COP30.
As of the end of June 2025, Climate Bonds recorded USD67.8 billion in cumulative GSS+ (green, social, sustainability and sustainability-linked) debt volume originating from Brazil, of which USD49.3 billion (73%) aligned with Climate Bonds screening methodologies. While Brazil’s overall alignment rate remains below that of peers such as Chile (96%) and Mexico (76%), it showed marked improvement in the first half of 2025, with 93% of new GSS+ debt meeting alignment criteria, up from 88% in H1 2024.
Brazil compared to LAC
Brazil is the most dynamic GSS+ market in Latin America and the Caribbean (LAC), ranking among the top three in cumulative volume with USD49.3 billion (19% of the regional total) and 152 issuers, compared to just 39 in Mexico and 28 in Chile. Unlike Chile and Mexico, where sovereign issuance dominates, Brazil’s market is broader and more diversified, featuring the highest number of transactions in the region, strong corporate participation, and a clear preference for local currency (51%). Hosting both sovereign issuers and some of the region’s largest corporate issuers, Brazil combines scale and depth, consolidating its role as a key driver of sustainable finance in the region.
Green bonds still dominate
Green-labelled instruments are the leading segment in Brazil’s cumulative GSS+ market, accounting for 61% (USD30 billion) of total volume. This makes Brazil the largest source of green bonds in LAC, ahead of Chile (USD15.6 billion) and Mexico (USD6.5 billion).
“Brazil’s sustainable finance market is demonstrating resilience and depth,” said Sean Kidney, CEO of Climate Bonds Initiative. “The strong pipeline of green and transition-labelled issuance, combined with evolving taxonomies and regulatory efforts, positions Brazil as a leading example of how finance can support climate and nature-positive goals as we move toward COP30.”
“The Brazillian labeled debt market continues to stand out as a regional benchmark, reflecting strong investor interest in sustainable instruments and in advancing the ESG agenda. The issuance of sovereign sustainable bonds marked a key milestone, helping to expand and diversify the market with active participation from companies, banks, investors, and development institutions. With COP30 taking place in Brazil, in the heart of the Amazon, this market has the potential to scale up investments in critical sectors for sustainable development, with a particular focus on bioeconomy and climate adaptation and resilience finance,” said Tatiana Assali, director at ERM.
“Brazil’s sustainable debt market is entering a new phase of maturity and global relevance,” said Myriel Frische, Portfolio Manager at LAGreen Fund. “Credible, high-impact bonds have succeeded in attracting an increasing number of investors, underscoring the importance of transparency and robust reporting. Through its support for issuers and focus on quality standards, LAGreen is helping to strengthen the foundation of Brazil’s sustainable finance market ahead of COP30.”
The report highlights a surge in sovereign and development bank activity, with both playing a pivotal role in deepening market liquidity and setting benchmarks for private issuers. Sectors such as renewable energy, low-carbon agriculture, and water infrastructure remained top destinations for green investment, aligning with Brazil’s climate adaptation and mitigation priorities.
The publication underscores the need to scale up adaptation and resilience finance, particularly for nature-based solutions and land-use transition, in order to meet national climate targets and contribute to global pathways under the Paris Agreement.
The report was launched on November 7, at an event hosted by Stocche Forbes in São Paulo, featuring a presentation of the report’s key insights, followed by a panel discussion and a workshop on sustainable finance. The event gathered around 40 leaders from government, finance, and industry.
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About LAGreen
LAGreen is the first green bond fund dedicated to Latin America. By investing in green bonds and supporting new issuers with technical assistance, LAGreen’s goal is to boost environmental and social benefits across the region and promote the transition to a green economy. In addition, the fund aims to promote high impact standards for green bonds, both in terms of the impact of supported projects, as well as green credentials, reporting, and impact assessment.
As an impact investment fund managed by Finance in Motion and Santander Asset Management, LAGreen was established as an initiative of Germany’s KfW Development Bank, with seed capital provided by the European Union (EU) and the German Federal Ministry for Economic Cooperation and Development (BMZ).
For more information visit https://lagreen.lu and follow us on LinkedIn.
About Finance in Motion
Finance in Motion is a global impact asset manager focused exclusively on sustainable development in emerging markets and developing economies. The company structures, manages, and advises impact investment funds that bring together public and private investors to address climate change, strengthen biodiversity conservation, foster the sustainable use of natural resources, improve livelihoods, and promote economic opportunities.
For more information, please visit us at: www.finance-in-motion.com
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About the Climate Bonds Initiative
Climate Bonds is the leading international non-governmental organisation mobilising global capital for climate action. We drive the growth of the green and sustainable debt market through science-aligned frameworks including our taxonomies and standards, our Certification, our data and insights, and our provision of expert policy and technical advice.
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