By Gerelyn Terzo, Global AgInvesting Media

The Brazilian Development Bank (BNDES) has greenlit an investment of up to $56 million to finance reforestation and restoration initiatives in degraded areas. This funding will flow through the innovative reforestation strategy overseen by the BTG Pactual Timberland Investment Group (BTG Pactual TIG), paving the way for sustainable growth and ecological recovery across the nation.

The BTG Pactual TIG investment vehicle is designed to be sizeable, with a target of mobilizing about $1 billion to bring roughly 270,000 hectares of degraded land back into productive, sustainable use. Rather than focusing solely on tree planting, the program covers a broader landscape restoration approach that includes protecting remaining natural areas, reforesting degraded tracts and restoring ecological function.

BTG Pactual TIG has emerged as a major force in restoring Brazil’s endangered Cerrado savannas. Earlier this year, the firm , working in partnership with Conservation International, had begun restoring more than 10,000 hectares of native and biodiverse Cerrado vegetation, adding critical habitat to previously degraded landscapes. BTG Pactual TIG’s wider Latin American reforestation initiative plans to conserve and restore up to 135,000 hectares of native forest and savanna, complemented by millions of trees planted on additional hectares of sustainably managed commercial plantations.

Alongside these environmental goals, the strategy is expected to generate nature-based carbon credits, create jobs and new income streams in surrounding communities while helping to restore biodiversity. Conservation International is serving as impact adviser, working with BTG Pactual TIG to shape projects so they deliver meaningful outcomes for climate, people and nature.

BNDES President Aloizio Mercadante stated, “BNDES has been working on several fronts to support environmental and climate projects, contributing to the ecological transition, decarbonization, and environmental conservation. This investment reflects the Bank’s role as an agent for a just transition.”

The economist went on to highlight the collaboration between the public and private sectors in to revitalize the Cerrado and other critical biomes, adding, “Partnerships like this demonstrate how public resources can catalyze sustainable projects with private sector participation, benefiting both people and nature, with respect for environmental standards and the quality of public spending.”

This investment aligns with BNDES’ recent decarbonization commitments showcased at the latest UN Climate Change Conference in Belém, Brazil, an event that emphasized breakthroughs in protecting forests, revitalizing ecosystems and promoting thoughtful land practices.

BTG Pactual CEO Roberto Sallouti commented, “BNDES’s support is an important milestone for our reforestation strategy and a powerful example of how public-private collaboration can catalyze institutional investment at large scales. This investment signals strong alignment with a vision of Brazil’s emerging bioeconomy, and of the potential for private investment to deliver benefits for people and nature alongside economic returns.”

Under the strategy, roughly 135,000 hectares of native forests and savannas are earmarked for protection and restoration, while another 135,000 hectares will be developed as FSC-certified, sustainably managed commercial plantations. Development of the ground has begun, with restoration activities underway across more than 12,000 hectares of native, biodiverse Cerrado vegetation.

As those projects mature, the landscape is expected to deliver more than 40,000 hectares of connected habitat for wildlife, an area equal to about one third of the city of Rio de Janeiro. Surveys conducted so far have identified hundreds of plant and animal species across the properties included in the strategy, proving the potential for long-term gains in biodiversity alongside its climate and economic goals.

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