Banco do Brasil (BB) and the German development bank KfW advanced in structuring a new financing operation worth 100 million euros to strengthen sustainable production chains in the bioeconomy, focusing on the Amazon. The initiative was announced this Wednesday (11), during COP31, through a joint statement by the Brazil–Germany Financial Cooperation.
The resources will be used to refinance BB's credit operations aimed at small producers, family farmers, traditional communities, indigenous peoples, cooperatives and micro, small and medium-sized companies.
The objective is to expand access to financing for activities that generate income from biodiversity and the sustainable use of natural resources.
For the vice-president of Government and Sustainability at Banco do Brasil, José Ricardo Sasseron, the strengthening of the bioeconomy directly depends on the conditions offered to those who live and produce in the region.
"When the producer finds 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 with the partnership", stated the executive in a note.
Chains covered
The Promotion of Sustainable Production Chains of Bioeconomy II project provides financing for different activities linked 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 resources are:
Forest products: açaí, Brazil nuts and babassu.
Agroforestry systems: cultivation of cocoa, coffee and cupuaçu.
Aquatic production: sustainable fishing and tropical fish farming.
Agriculture: cultivation of tropical fruits and vegetables.
Wood products: production from sustainable plantations in degraded areas.
The portfolio will be able to bring together 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 the cooperation announced during COP30, in November 2025. On that occasion, Banco do Brasil announced a funding of 50 million euros, in addition to 4.5 million euros in donation from the Federal Ministry for Economic Cooperation and Development of Germany (BMZ), intended for counter-guarantee and technical assistance.
In the first stage, more than 4,500 families benefited, including small producers, family farmers and traditional communities, especially in the Amazon region.
Now, the expected 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, in addition to international references. Among the parameters are the Forest Code, the Social, Environmental and Climate Responsibility Policy (PRSAC), the standards of the International Finance Corporation (IFC) and the conventions of the International Labor Organization (ILO).
The project establishes restrictions for activities considered incompatible with its sustainability objectives. Operations related to:
Livestock;
Soybean production;
Oil palm cultivation;
Large monocultures with an area exceeding 500 hectares;
Areas with illegal deforestation that occurred after 2008.
Resource management
In the operation, Banco do Brasil will be the borrower of the financing and will be responsible for identifying, analyzing, classifying and allocating eligible operations.
KfW will act as the financing institution and responsible for monitoring the project, representing 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.
