1. Themes
  2. Domestic Mobilization
  3. Domestic Financial Market Development

Domestic Financial Market Development

Domestic savings are expected to play a critical role in meeting Brazil's climate finance goals, but domestic markets need assistance to build the necessary breadth and depth to support such engagement.

2030 Goals

01

Deepen capital markets by expanding long-term BRL-denominated instruments (debentures, incentivized bonds, securitizations) that channel household and institutional savings into climate-related infrastructure and low-carbon transition projects.

02

Broaden institutional investor participation by adjusting pension fund and insurance regulations to integrate climate criteria and increase allocations to sustainable domestic assets.

03

Strengthen domestic financial intermediation through green credit lines, blended finance facilities, and guarantees that make climate projects bankable in local currency.

04

Build transparent, liquid sustainable markets (green bonds, carbon credits, sustainability-linked debt) supported by robust disclosure, a credible taxonomy, and sovereign sustainable issuances to anchor private demand.

Status

Moderate Progress

Brazil’s financial system is still concentrated in bank lending, but government reforms are moving to diversify instruments, broaden investor participation, and strengthen domestic capital markets to better mobilize national savings.

The Securities Commission (CVM) has mandated sustainability disclosures aligned with International Sustainability Standards Board (ISSB) standards, while the Central Bank (BCB) requires climate risk reporting through the Social, Environmental and Climate Risks and Opportunities Report (GRSAC) framework, improving transparency and governance across the financial system.

The Ministry of Finance (MF) developed the Sustainable Taxonomy of Brazil ( TSB), which classifies sustainable activities and guides domestic credit programs, capital market issuances, and financial institutions.

The New Infrastructure Debentures Framework replaced the older incentivized bond regime, expanded eligible sectors (e.g., renewable energy, sanitation, digital infrastructure), and introduced tax benefits

The National Treasury (STN) issued sovereign sustainable bonds with Allocation & Impact Reports, providing benchmarks for private issuers and strengthening Brazil’s sustainable debt market architecture.

Leading Actors

Cooperation is required between these actors and audiences to drive progress foward in Domestic Financial Market Development.

Private Financial Institutions

B3

Private Financial Institutions

Itaú

Private Financial Institutions

Bradesco

Public Financial Institutions

Banco do Brasil (BB)

Public Financial Institutions

Central Bank of Brazil (BCB)

Private Financial Institutions

Rabobank

Public Financial Institutions

Brazilian Development Bank (BNDES)

Multilateral Development Banks

Inter-American Development Bank (IDB)

Multilateral Development Banks

World Bank

International Organizations

Network for Greening the Financial System (NGFS)

International Organizations

International Sustainability Standards Board (ISSB)

International Organizations

Bank for International Settlements (BIS)

International Organizations

International Organization of Securities Commissions (IOSCO)

Ministries

Ministry of Finance (MF)

Ministries

Ministry of Environment and Climate Change (MMA)

Ministries

Ministry of Mines and Energy (MME)

Ministries

Minstry of Planning and Budget (MPO)

Other Governmental Organizations

Securities and Exchange Commission of Brazil (CVM)

Other Governmental Organizations

National Monetary Council (CMN)

Supportive Stakeholders

Instituto do Clima e Sociedade (iCS)

Supportive Stakeholders

Observatório do Clima

Key Milestones

Showcasing the key reform milestones for Domestic Financial Market Development that have been addressed at global events.

View Roadmap

New York, US

Global Innovation Lab for Climate Finance Endorsement Meeting

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  • Domestic Financial Market Development

    Deepen domestic capital markets through long-term sustainable instruments.

  • Transition Finance

    Deploy MDB- and DFI-backed blended finance structures focused on early-stage renewable technologies and grid modernization.

TBC

Sustainable Finance Policy Conference 2026

View Event
  • Domestic Financial Market Development

    Strengthen climate-aligned financial intermediation.

  • Nationally Determined Contribution

    Discuss the implementation of energy efficiency and fuel-switching measures in transport and industry to stay within Brazil’s allocated carbon budget.

Washington DC, US

Annual Meetings of the IMF and World Bank

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  • Domestic Financial Market Development

    Build transparent and liquid sustainable financial markets.

  • International Carbon Markets

    Secure international market linkages through strategic agreements.

Learn More

Publications and educational material to deepen understanding of Domestic Financial Market Development.

Securities Commission Law

Domestic Financial Market Development

Resolution establishing rules for foreign investors and sustainable finance instruments in the domestic market.

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Relatório de Riscos e Oportunidades Sociais, Ambientais e Climáticos

Domestic Financial Market Development

Report on social, environmental, and climate-related risks and opportunities in Brazil’s financial system.

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