Brazil publishes the second Allocation and Impact Report on sovereign sustainable bonds

The Federal Government published this Friday (November 14, 2025) the second Allocation and Impact Report – RAI 2025, referring to the sovereign sustainable bonds issued in November 2023 and June 2024.

In accordance with Brazil’s Sovereign Sustainable Bond Framework, the country commits to allocating an amount equivalent to the net proceeds from the issuances to eligible expenditures that directly contribute to promoting the nation’s sustainable development, as well as to report on impact measures related to these allocations.

Regarding the first issuance, carried out in November 2023, the RAI 2025 presented the full allocation of proceeds, with 60% in green expenses and 40% in social expenses, executed between January 2023 and June 2025. In financial terms, these allocations correspond to BRL 5.77 billion and BRL 3.85 billion, respectively. As for the net proceeds from the second issuance, they are distributed as follows: 25.2% (BRL 2.73 billion) for green expenses and 40% (BRL 4.33 billion) for social expenses, with 34.5% remaining to be reported in the 2026 edition of the Allocation and Impact Report.

The tables below show the allocation of resources by Framework categories, comparing the actual amounts with the limits previously indicated in the Pre-Issuance Report with Indicative Allocation – RPE, published in October 2023 (for the first issuance) and in May 2024 (for the second issuance).

Considering the first issuance, within the environmental categories, 18% were allocated to Terrestrial and Aquatic Biodiversity, 15% to Renewable Energy, and 14.5% to Sustainable Management of Living and Natural Resources and Land Use. Category Clean Transport, in turn, did not reach the indicative minimum, which was compensated by a higher allocation of resources in Sustainable Management of Living and Natural Resources and Land Use and by reporting eligible expenditures in category Sustainable Management of Water and Effluents, although this category had not been foreseen in the corresponding RPE.

Regarding social expenditures, there were no changes in the amounts already reported in RAI 2024: 30% in Combating Poverty and 10% in Food Security and Sustainable Food Systems.

Sources: Pre-Issuance Report October/2023, SIAFI and BNDES

As for the second issuance, the amount effectively reported so far corresponds to 65.2% of the net proceeds. In terms of green expenses, the main highlights are categories Sustainable Management of Living and Natural Resources and Land Use, with 13.6% of resources, and Renewable Energy, with 11.2% allocation. In terms of social expenditures, there is also no new reporting compared to RAI 2024, maintaining the allocation of 36% in Combating Poverty and 4% in Access to Basic Infrastructure.

Sources: Pre-Issue Report May/2024, SIAFI and BNDES

Regarding impact assessments, indicators from the Multi-Year Plan – PPA 2024–2027 are used to monitor the benefits of eligible budgetary programs. It is worth noting that the PPA is the main medium-term planning instrument of the Federal Government, and its main objective is to establish the guidelines, objectives, and strategic targets of public administration for a four-year period. To materialize these objectives, the PPA presents programs that serve as a link between government priorities and annual budgets, guiding resource allocation and the implementation of public policies.

In addition to presenting the PPA indicators and targets related to the reported expenditure categories, RAI 2025 advances compared to the previous year by presenting the results measured for 2024.

In the case of expenditures executed through the National Fund on Climate Change (Fundo Clima), operated by the National Bank for Economic and Social Development (BNDES), the impact analysis considers the projects’ indicators , which are reported and monitored by the BNDES.

The Allocation and Impact Reports are prepared by the Sovereign Sustainable Finance Committee (CFSS), involving joint efforts from the various agencies that compose it. With the publication of the RAI 2025, Brazil reaffirms its commitment to strengthening sustainable finance, promoting transparency, and enhancing the disclosure of the social and environmental impacts of the resources raised through sustainable bonds, which play a decisive role in mobilizing efforts to address the challenges of transitioning toward a more inclusive and sustainable future.

Access the full Allocation and Impact Report for Sustainable Sovereign Bonds here.