This report analyzes the growing market for nature finance, focusing on Brazil as a key area of activity for Nature-based Solutions (NbS). It documents recent market momentum, citing over $1.67 billion in capital allocated to NbS in Brazil in the last 12 months and a high velocity of new fund formations. The analysis shows investors are targeting returns comparable to other asset classes, with private equity and venture capital funds in the sector aiming for returns over 21%.

The report identifies supportive government policies, such as Brazil's Ecological Transformation Plan, and increasing corporate demand for deforestation-free commodities as key market drivers. To further scale investment, the document concludes that three structural shifts are needed: increasing demand for sustainable products, deploying catalytic capital to de-risk and attract private finance, and integrating climate and nature policies at national and international levels.