IDB and Banco do Brasil Launch $250M Bioeconomy Boost in Legal Amazon

In a landmark move to support sustainable development and conservation in the Brazilian Legal Amazon, the Inter-American Development Bank (IDB) has approved a $250 million financing package for the BB Amazônia Program, a pioneering initiative developed in partnership with Banco do Brasil (BB). This transformative program is poised to catalyze bioeconomy enterprises and expand critical sustainable infrastructure, aligning with Brazil’s environmental commitments and the urgent need to protect the Amazon biome.

The financing includes a $175 million loan from IDB and a $75 million loan from the Green Climate Fund (GCF). Together, these funds aim to break down long-standing barriers to credit for local entrepreneurs and small businesses, while fostering inclusive, forest-compatible growth across the region.

A Strategic Pillar of the Amazonia Forever Agenda

The BB Amazônia Program is a flagship component of Amazonia Forever, the IDB’s regional strategy for scaling investments in sustainable, inclusive, and resilient development across the Amazon basin. With the bioeconomy at its core, the strategy supports initiatives that integrate environmental conservation with income generation, equity, and community empowerment.

Through BB Amazônia, the IDB and Banco do Brasil aim to unlock access to credit for an estimated 11,700 micro, small, and medium-sized enterprises (MSMEs), including family farmers, cooperatives, women-led businesses, and traditional communities. These enterprises are essential actors in local bioeconomy value chains—ranging from sustainable forestry, non-timber forest products, agroecology, and nature-based services.

“This operation represents a paradigm shift—where conservation and economic inclusion go hand-in-hand,” said an IDB official. “We’re empowering people to be both protectors and beneficiaries of the Amazon.”

Investment in Infrastructure and Climate-Resilient Growth

Beyond financing for MSMEs, the program includes investments in sustainable infrastructure, particularly renewable energy projects and digital connectivity. This dual infrastructure focus supports low-carbon economic growth and aims to bridge the digital divide that leaves many Amazonian communities disconnected from financial services, markets, and government resources.

The initiative contributes directly to Brazil’s climate mitigation and adaptation goals under the Paris Agreement, particularly by promoting clean energy solutions and reducing emissions from deforestation and degradation.

Key projected outcomes include:

• Expansion of access to credit for forest-compatible businesses

• New renewable energy generation capacity across remote communities

• Enhanced internet and digital services in underserved Amazonian regions

• Boosted financial inclusion for women and marginalized populations

Inclusive Finance and Gender-Specific Initiatives

Recognizing the systemic exclusion faced by women and traditional populations in accessing capital, the program includes dedicated funding for women-led bio-businesses and a planned action plan for traditional populations. This targeted approach promotes inclusive development and supports the resilience of historically marginalized groups who are often stewards of biodiversity.

Moreover, the package includes an $8.8 million grant from IDB and GCF, allocated to implement a loss-coverage mechanism. This risk mitigation tool will allow Banco do Brasil to extend lending to higher-risk borrowers such as early-stage or community-based enterprises that typically struggle to meet conventional lending criteria.

The Role of the BB Bioeconomy Hub

A critical implementation partner is the BB Bioeconomy Hub, launched in 2024 by Banco do Brasil. Supported by ongoing IDB-GCF Technical Cooperation, the Hub serves as an integrated platform that coordinates financial services, technical assistance, and knowledge-sharing across the Amazon. It will be instrumental in facilitating outreach, supporting project preparation, and enhancing the capacity of bio-businesses to absorb credit and scale impact.

With Banco do Brasil’s extensive footprint across the region, the Hub will ensure localized implementation and responsive service delivery.

Financing Terms Reflect Commitment to Long-Term Development

The financial structure of the operation underscores its long-term development vision:

• IDB Loan: $175 million

  • 25-year maturity, 5.5-year grace period

  • Interest rate tied to SOFR (Secured Overnight Financing Rate)

• GCF Loan: $75 million

  • 20-year amortization, 5.5-year grace period

  • Fixed interest rate of 0.75%

These favorable terms reflect the partners’ commitment to sustainable finance as a tool for systemic transformation.

A Model for Climate Finance and Green Growth

This initiative represents a model for climate-aligned development finance, blending concessional capital, technical assistance, and innovative risk-sharing mechanisms. It underscores the importance of public-private partnerships and the power of financial institutions in facilitating environmental and economic outcomes simultaneously.

As climate change and biodiversity loss continue to challenge the world’s most vital ecosystems, the BB Amazônia Program sets a precedent for equitable, community-based conservation efforts that prioritize people and the planet.