Projects

Our activities in Brazil are part of the Global Project Sustainable Economic Transformation and Sustainable Finance.

Brazil is pursuing an ambitious sustainability agenda under the Ministry of Finance’s Ecological Transformation Plan. However, capital flows remain insufficient to meet these goals, with an estimated USD 200 billion in climate finance needed by 2030 to achieve national climate targets. While the sustainable capital market has expanded rapidly, sustainable lending has stagnated at around 20%.

The development of a national sustainability taxonomy is central to mobilizing capital for sustainable investment. It provides unified definitions to steer investment and serves as a normative reference for product standards, disclosures, and public programs. Yet, inconsistent sustainability reporting practices and capacity gaps continue to hamper the market transparency required to enable informed investment decisions and expand Brazil's sustainable finance market.

Against this backdrop, the Federal Accounting Council (CFC) established the Brazilian Sustainability Pronouncements Committee (CBPS) in 2022. Its objective is to develop national sustainability reporting standards fully aligned with international practices - specifically the ISSB’s IFRS S1 and IFRS S2 standards. As the development of these standards has advanced, the CBPS has partnered with GIZ and the ISSB to increase market awareness and build the capacity necessary for effective implementation

Support of the first CBPS-IFRS sustainability reporting conference in Brasília (May 2024)

• Awareness raising about the spirit and letter of IFRS S1 and S2 and Brazil’s pathway toward adoption for regulatory bodies and private sector entities
• Capacity-building for Brazilian entities on the implementation of sustainability reporting standards
• Organisation of an exchange platform on the effective supervision of sustainability reports