Banco do Brasil (BB) and the German development bank KfW have advanced in structuring a new €100 million financing operation to strengthen sustainable production chains in the bioeconomy, with a focus on the Amazon. The initiative was announced this Wednesday (11) during COP31, through a joint statement by the Brazil–Germany Financial Cooperation.
The funds will be allocated to refinancing BB credit operations aimed at small producers, family farmers, traditional communities, indigenous peoples, cooperatives, and micro, small, and medium-sized enterprises.
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The goal is to expand access to financing for activities that generate income from biodiversity and the sustainable use of natural resources.
According to José Ricardo Sasseron, Executive Vice President of Government and Sustainability at Banco do Brasil, strengthening the bioeconomy depends directly on the conditions offered to those who live and produce in the region.
"When producers find conditions to invest in sustainable activities and transform natural wealth into income, the benefits go beyond the credit operation: they strengthen the local economy, generate new opportunities, and bring development and conservation closer together. It is this connection that we seek to expand through the partnership," he said…
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Banco do Brasil (BB) and the German development bank KfW have advanced the structuring of a new €100 million financing operation to strengthen sustainable production chains in the bioeconomy, with a focus on the Amazon. The initiative was announced this Wednesday (11) during COP31, through a joint statement from the Brazil–Germany Financial Cooperation.
The funds will be used to refinance BB credit operations aimed at small producers, family farmers, traditional communities, Indigenous peoples, cooperatives, and micro, small, and medium-sized enterprises.
The goal is to expand access to financing for activities that generate income from biodiversity and the sustainable use of natural resources.
According to José Ricardo Sasseron, Banco do Brasil's Executive Vice President of Government and Sustainability, strengthening the bioeconomy depends directly on the conditions offered to those who live and produce in the region.
"When producers find 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, generate new opportunities, and bring development and conservation closer together. That is the connection we seek to expand through this partnership," the executive said in a statement.
Supported value chains
The project Fostering Sustainable Bioeconomy Production Chains II provides financing for different activities related to the sustainable use of biodiversity.
The initiative aims to serve different segments of the regional economy, from family farmers to cooperatives and small businesses linked to sustainable production.
Among the production chains that may receive funding are:
Forest products: açaí, Brazil nuts, and babassu.
Agroforestry systems: cultivation of cacao, coffee, and cupuaçu.
Aquatic production: sustainable fishing and tropical fish farming.
Agriculture: cultivation of tropical fruits and vegetables.
Timber products: production from sustainable plantations in degraded areas.
The portfolio may include operations contracted through existing credit lines, such as Pronaf Bioeconomia, Pronaf Agroecologia, Pronaf Mulher, RenovAgro, InovAgro, ModerAgro, PCA, FCO Verde, and Pronamp.
Expanded partnership
The new operation expands on the cooperation announced during COP30 in November 2025. On that occasion, Banco do Brasil announced a €50 million fundraising, plus €4.5 million in donations from Germany's Federal Ministry for Economic Cooperation and Development (BMZ), earmarked for collateral guarantees and technical assistance.
In the first phase, more than 4,500 families benefited, including small producers, family farmers, and traditional communities, especially in the Amazon region.
Now, the planned loan volume increases from €50 million to €100 million.
Socio-environmental criteria
The selection of operations will follow socio-environmental criteria defined by BB and KfW, as well as international references. Among the parameters are the Forest Code, the Social, Environmental and Climate Responsibility Policy (PRSAC), the International Finance Corporation (IFC) standards, and the conventions of the International Labour Organization (ILO).
The project establishes restrictions on activities considered incompatible with its sustainability objectives. Operations related to the following may not receive funding:
Livestock farming;
Soy production;
Oil palm cultivation;
Large monocultures with an area exceeding 500 hectares;
Areas with illegal deforestation occurring after 2008.
Management of funds
Under the operation, Banco do Brasil will be the borrower and will be responsible for identifying, analyzing, classifying, and allocating eligible operations.
KfW will act as the financing institution and will be responsible for monitoring the project, representing the Brazil-Germany Financial Cooperation.
The initiative is part of Banco do Brasil's Bioeconomy Strategy and seeks to combine productive and financial inclusion, income generation, biodiversity conservation, and climate change mitigation.