Products

The Brazilian Sustainable Taxonomy (Taxonomia Sustentável Brasileira, TSB) – established by Decree No. 12,705/2025 as a key instrument of the Brazilian government's New Brazil - Ecological Transformation Plan – was published in its first edition in November 2025. The TSB is a classification system for economic activities, assets, and projects that contribute to Brazil’s climate, environmental, and economic-social objectives, using specific, science-based criteria for eight economic sectors. By defining specific technical criteria and thresholds, it provides companies, financial institutions and public authorities with a clear definition of economic activities, assets, and projects that can be considered environmentally and socially sustainable in the Brazilian context.

As such, the TSB pursues three strategic objectives: 1) mobilise and redirect public and private finance towards activities that support sustainable, inclusive, and regenerative development; 2) promote technological densification, increasing productivity and competitiveness of the Brazilian economy on a sustainable basis; and 3) create the foundations for producing reliable information on sustainable finance flows by encouraging transparency, integrity and a long-term vision for economic and financial activity.

In practice, the taxonomy can be used to guide the design and labelling of financial products, inform credit and investment decisions, support corporate sustainability disclosures, and underpin public policies such as tax incentives, public procurement, investment programmes and monitoring of sustainable investments. By establishing a shared language and clear criteria, the TSB enhances transparency, comparability, and credibility in sustainable finance markets, while helping channel financial resources toward activities aligned with Brazil’s ecological transformation objectives.

Under the leadership of the Ministry of Finance (MF), which chairs the TSB’s Interinstitutional Committee (CITSB), 350 experts from 63 public institutions, financial authorities, the financial and productive sectors, and civil society participated in developing the first edition of the TSB. Between November 2024 and March 2025, the preliminary proposals were in public consultation, receiving more than 2.800 practical contributions.

Covered sectors include:

• agriculture, livestock, forestry, fisheries, and aquaculture;
• extractive industries;
• manufacturing;
• electricity and gas;
• water and sanitation, waste management and decontamination;
• construction;
• transport, storage and mail;
• selected social services – mainly information and communication technology (ICT), urban planning and tourism.

The decree establishes the TSB as a normative reference for public policies, such as:

• labelling of financial products;
• corporate disclosure requirements;
• tax and credit incentives; public procurement;
• and monitoring of investments and financial flows.

The TSB was designed to be interoperable with other regional and international taxonomies, facilitating cross-border financial flows, while emphasising national specificities to address Brazil’s particular challenges. The TSB is among the few jurisdictional taxonomies to include social objectives and the first to include an ethnic-racial equality objective.

The development of the Brazilian Sustainable Taxonomy is being led by the Brazilian Ministry of Finance, which presides over the Interinstitutional Committee on the Brazilian Sustainable Taxonomy (Comitê Interinstitucional da Taxonomia Sustentável Brasileira, CITSB). As part of the Executive Secretariat, GIZ, together with UNEP FI, supports the Ministry of Finance as a technical partner in the context of the project FiBraS II and the Euroclima Programme, commissioned by the German Federal Ministry for Economic Cooperation and Development (BMZ) and co-financed by the European Union.

Companies, financial institutions, investors, public entities, and civil society.

In December 2023, the Action Plan for the Brazilian Sustainable Taxonomy was launched at the COP 28 after a public consultation.

The first edition of the Brazilian Sustainable Taxonomy and Decree No. 12,705/2025 were published in November 2025, focusing on three objectives: Climate change mitigation; Climate change adaptation; and Reducing gender and racial inequalities. The development of the second edition, which will address additional objectives and activities, will begin in early 2026. In parallel, the reporting and verification systems will be established, and a testing phase will be conducted.