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In December 2023, at the COP28 in Dubai, the Brazilian Ministry of Finance launched the Action Plan on the Brazilian Sustainable Taxonomy (Taxonomia Sustentável Brasileira - TSB), after a public consultation. The planned TSB – a classification system for economic and financial activities that qualify as environmentally and socially sustainable – is intended to serve as a key policy instrument to (i) direct public and private capital into green and socially inclusive investments; (ii) promote technological development on a sustainable basis; and (iii) create the basis for producing reliable and trustworthy information on sustainable finance flows.

The Action Plan proposes the eleven climate, environmental and social objectives the TSB will address, its framework and guiding principles, covered sectors, as well as its governance structure. For each of the climate, environmental and social objectives, technical screening criteria will be developed for economic activities in eight sectors: Agriculture, livestock, forestry, fisheries, and aquaculture; Extractive industries; Manufacturing; Electricity and gas; Water, sanitation, waste management and decontamination; Buildings; Transport; and selected social services – mainly Information and Communication Technology (ICT), urban planning and tourism.

The proposal is widely aligned with international references, including the taxonomies of the EU, Colombia, and Mexico, with the objective to facilitate interoperability. Notwithstanding, it gives strong emphasize on national specificities to address Brazil’s particular challenges and priorities to meet its environmental and social objectives.

As part of Brazil’s Ecological Transformation Plan, the taxonomy will be an instrument to stimulate investments that contribute to promoting productivity growth and decent jobs, addressing environmental and climate challenges, and reducing inequalities in their various dimensions, focusing on racial, gender and regional/territorial disparities.

The development of the Brazilian Sustainable Taxonomy is being led by the Brazilian Ministry of Finance, which presides the Interinstitutional Committee on the Brazilian Sustainable Taxonomy (Comitê Interinstitucional da Taxonomia Sustentável Brasileira - CITSB). GIZ, together with UNEP FI, supports the Ministry of Finance as 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, civil society.

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

The Brazilian Sustainable Taxonomy is currently under development. A first version for consultation shall be presented at the COP 29 in November 2024, focusing on five priority objectives: Climate change mitigation; Climate change adaptation; Conservation and sustainable use of soil and forests; Reducing gender and racial inequalities; and Reducing regional inequalities. An initially voluntary introduction is planned from 2025/26.