The Nature Investment Lab (NIL) had a key advisory role in the recent reformulation of regulations that broaden the range of financial instruments applicable to the Eco Invest Brasil Program. NIL’s contribution, incorporated into the new regulation linked to the Program, facilitates the mobilization of private capital for the national ecological transformation agenda. It was in CMN Resolution No. 5,205, published on April 17, 2025, that we can see NIL’s technical suggestions incorporated, improving the financing conditions for Nature-Based Solutions projects in Brazil.

The Eco Invest Program, managed by the National Treasury, aims to attract foreign capital and mitigate exchange rate risks to finance projects aligned with sustainability. The second auction was announced this week and offers a blended finance line specifically focused on the goal of recovering degraded pastures.

The new Article 3-A of Resolution 5,205, the result of technical discussions with NIL and the National Treasury, along with several other actors, authorizes financial institutions to use the resources of the Eco Invest Line (catalytic capital at 1% p.a. with extended terms) not only in traditional credit but also in new modalities such as:

  • Acquisition of investment fund shares: Allows banks to pass on resources via funds dedicated to sustainable projects, which can also attract equity and other types of capital. The resolution even provides for an additional term incentive (extended grace period) for institutions that use this structure.
  • Acquisition of securities: Explicitly includes securitization instruments such as Agribusiness Receivables Certificates (CRA), Real Estate Receivables Certificates (CRI), and other credit securities, as long as they are directly backed by projects eligible for Eco Invest.

These changes, recommended by NIL, are fundamental to operationalize more effective blended finance structures. They provide greater legal certainty and flexibility for financial institutions to manage risks and diversify credit by spreading it via funds or securitization. The measure also expands fundraising opportunities by structuring financial products that can be accessed by a wider universe of investors (institutional, retail, international funds).

Furthermore, the measure also optimizes resource allocation by creating financial vehicles with robust governance and transparency, adequate for the complexity and maturation period of ecological restoration and regenerative agriculture projects.

To see NIL’s full proposals, click here.

Next Steps

Resolution 5,205 and, in particular, Article 3-A, strengthen the financial framework to face the challenge of recovering millions of hectares of degraded lands in Brazil, transforming an environmental liability and emitter of GHG (Greenhouse Gases) into a productive asset and carbon sequester. By allowing the use of capital market instruments, the rule fosters the connection between patient international capital and impact projects in the national territory.

NIL remains dedicated to developing and disseminating innovative financial solutions for Nature-Based Solutions. We believe that the sophistication of instruments and public-private collaboration are essential vectors to unlock the capital necessary for the Brazilian ecological transition.

The Nature Investment Lab continues to explore new frontiers in sustainable finance. We invite financial institutions, asset managers, policymakers, and other actors to learn about our initiatives and collaborate with us in the development of scalable financial solutions for nature.