The Ministry of Finance’s Proposal for COP30

The Ministry of Finance plans to expand sustainable finance, with emphasis on the development of innovative financial instruments such as Sustainable Sovereign Bonds and the Eco Invest Brasil program, designed to mobilize external capital for the Ecological Transformation.
The proposal also includes the Tropical Forest Forever Facility (TFFF), with the potential to protect approximately 1 billion hectares of tropical forests across about 70 countries. It is the most significant initiative for forest conservation ever proposed. As an innovative blended finance mechanism aimed at large-scale forest preservation, the TFFF is based on the mobilization of USD 25 billion through funding from sponsoring countries. This capital would be leveraged up to fourfold via the issuance of bonds in capital markets, reaching a total of USD 125 billion. The resources will be invested in a diversified portfolio, and the net returns—after investor remuneration and administrative costs—will finance annual payments to countries that preserve their forests. The proposal is being developed in collaboration with partner countries and institutions in international forums and will be presented to the world in Belém.

One of the priorities of the Ministry of Finance is to strengthen international regulatory frameworks, with a focus on the global harmonization of sustainable finance rules. Within the COP30 Action Agenda, the Ministry proposes the creation of a Coalition for the Integration of Carbon Markets and the advancement of a Global Super-Taxonomy, aimed at facilitating the flow of sustainable investments while ensuring social inclusion and economic development.

The Carbon Market proposal seeks to establish an international coalition of countries willing to adopt common standards and rules for their carbon pricing systems. This integration would rely on shared principles for the decarbonization of strategic sectors, monitoring and reporting systems, and the use of high-integrity credits. The initiative also proposes to move forward with interoperability and cross-border integration between carbon credit registries and trading platforms. More broadly, it seeks to align national climate policies with a science-based, equity-driven multilateral framework, with attention to social and economic impacts. The focus remains on a just transition, allowing each country to reach greenhouse gas neutrality according to its economic capacity and historical responsibilities.

The Global Super-Taxonomy promotes actions that facilitate comparison among different national taxonomies—i.e., how financial products deemed sustainable are classified based on each country's context. The measure encourages international financial flows aligned with sustainable development, as established in the Paris Agreement. This action reinforces the initiative "Action Plan to Promote Interoperability and Comparability of Taxonomies," launched by the Central Bank of Azerbaijan at COP29, which already includes the participation of various multilateral organizations. It also encourages exchange of experiences in the implementation of these tools and promotes dialogue on the full value of sustainability, including inequality reduction and development—going beyond the climate and environmental crisis.

The reform of the multilateral financial architecture aims at strengthening the alignment between national initiatives—such as the New Brazil Plan—and multilateral institutions, ensuring an improved financial architecture. Under Brazil’s COP30 presidency, the country established the Finance Ministers’ Circle. Led by Minister Fernando Haddad, the group will bring together finance ministers from selected countries, supported by advisory groups composed of experts, private sector representatives, civil society, and multilateral institutions. Its goal is to promote a structured dialogue on strategies to expand climate finance for developing countries. The initiative will serve as a key contribution to the Baku to Belém Roadmap for USD 1.3 trillion. The Circle has been functioning as a regular consultation platform throughout 2025 and will culminate in a report to be delivered to the COP30 Presidency, as one of the main contributions to the joint submission by the COP29 and COP30 presidencies in Belém.

The reform of the financial architecture must ensure that states remain central to policy formulation, while Multilateral Development Banks (MDBs) and Vertical Climate and Environment Funds (VCEFs) mobilize resources for developing countries, facilitating access for those who need it most.

MDBs and VCEFs are essential to expanding innovative financial instruments and exploring mechanisms such as climate-resilient debt clauses and debt swaps. However, these institutions must modernize their operations and governance structures and leverage more private capital through instruments like blended finance and guarantees, while simplifying access for developing countries and becoming more efficient and effective. VCEFs should prioritize adaptation finance for vulnerable countries, streamline approval processes, enhance transparency, and support innovative technologies. Expanding risk mitigation tools is key to attracting private investment. Collaboration between MDBs, VCEFs, and national institutions must be strengthened to align public and private investment flows. 

Strengthening domestic capacity is a core pillar for enabling transformative climate and development investments. Brazil’s proposal focuses on building institutional, technical, and human capacity as a prerequisite to implement ambitious investment strategies. This includes sectoral planning, project pipeline development, and interinstitutional coordination.

In addition, the development of the capital market is critical to mobilizing domestic savings and channeling funds to sustainable projects. This requires improvements in the regulatory environment, the expansion of green financial instruments, and greater integration between public and private financing systems. This institutional architecture lays the foundation for connecting national strategies to international financing opportunities, creating a virtuous cycle of high-impact climate and socioeconomic investment.

The strengthening of National and Subnational Development Banks and the enhancement of national investment platforms are key components of this strategy. In the case of development banks, the goal is to ensure adequate capitalization and access to innovative instruments that support sustainable projects. This includes greater use of guarantees, co-financing, and dedicated credit lines, along with partnerships between MDBs and domestic financial institutions to facilitate access to climate finance.

As for national platforms, the focus is on connecting projects with broad funding networks by leveraging concessional catalytic capital. The Brazil Climate and Ecological Transformation Investment Platform (BIP) is a government initiative created to increase investment in ecological transformation, supporting decarbonization, sustainable use of natural resources, and improved quality of life for the population.