Brazil recorded USD 3.1 billion in aligned green bond issuance recorded in the first half of the year — equivalent to 50% of the country's total aligned green bond volume for the whole of 2024. The figures, published by the Climate Bonds Initiative in its Brazil Sustainable Debt State of the Market H1 2025 report, said green bonds were 'set to perform well in 2025' after Brazil recorded its largest volume of aligned green bonds in 2024, USD 6.3 billion, up 85% on 2023.
The broader Brazilian sustainable debt market recorded USD 12 billion in aligned issuance volume in 2024, representing a 12% increase on 2023 levels.
BRAZILIAN SUSTAINABLE TAXONOMY ESTABLISHED
A critical development shaping the market's outlook is the Brazilian Sustainable Taxonomy, formally established by Decree No. 12,705 published on 31 October 2025. Its stated objective is to reduce information asymmetries and promote the integrity of the sustainable finance market while ensuring interoperability with international standards; activities are assessed on their contribution to environmental or social objectives, the absence of significant harm and compliance with minimum safeguards.
The Climate Bonds report noted that the Brazilian taxonomy introduces economic and social objectives, which underpin the use of the term sustainable.
MARKET STRUCTURE AND GROWTH DRIVERS
Brazil's sustainable debt market encompasses a wide range of instruments, including green bonds, social bonds, sustainability bonds, and sustainability-linked bonds whose coupon or other financial terms are tied to the achievement of pre-agreed key performance indicators. The aligned figures count only debt that meets Climate Bonds' screening methodologies: of USD 67.8 billion of cumulative GSS+ volume recorded from Brazil by the end of June 2025, USD 49.3 billion (73%) was aligned.
Cumulatively, 67% of Brazil's aligned GSS+ volume has been issued by non-financial corporates, nearly 40% of which operate in the energy sector, mainly renewable energy, according to the report. The report notes that agribusiness as a whole accounts for more than 23% of Brazil's GDP.
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