In a powerful show of cross-sector collaboration, the International Finance Corporation (IFC), the private sector arm of the World Bank, and BTG Pactual, Latin America’s largest investment bank, have announced a joint commitment to invest up to $1 billion in sustainability and development-focused initiatives across Brazil and the broader Latin American region by the end of 2028.

Driving Private Capital into Climate and Development Solutions

The announcement marks a significant step in the rising global movement to mobilize private capital for climate resilience and inclusive economic growth. As concerns over biodiversity loss, deforestation, and social inequality mount, especially in vulnerable regions such as the Amazon Basin, the partnership seeks to channel financial resources into impactful projects that address both environmental and social imperatives.

Alfonso Garcia Mora, Regional Vice-President for Europe, Latin America, and the Caribbean at IFC, underscored the growing role of the private sector in tackling these challenges. He stated that the private sector has both the capacity and responsibility to become a transformative force in driving climate action, sustainable development, and economic upliftment. According to Garcia Mora, meaningful progress on the climate agenda will depend on private institutions stepping forward to lead, invest, and innovate.

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A Strategic Vision for Impact and Accountability

The partnership will operate through a range of financing mechanisms, including co-financing, direct equity investments, and allocations via private equity funds. These tools will be used to support a diverse portfolio of projects across sectors such as climate-smart infrastructure, forest conservation, renewable energy, and the growing bioeconomy.

BTG Pactual CEO Roberto Sallouti emphasized that while the capital commitment is ambitious, its deployment will be guided by a rigorous framework of technical and financial due diligence. The goal, he explained, is not just to spend, but to deliver measurable impact through disciplined, criteria-based investment decisions.

Investing in the Amazon and Beyond

Brazil stands at the center of the region’s environmental and development narrative. As home to the largest portion of the Amazon rainforest, the country is both a critical guardian of global biodiversity and a flashpoint in international climate policy. With increasing scrutiny over deforestation, land use change, and the rights of Indigenous communities, sustainability investments in Brazil have never been more urgent or consequential.

The IFC-BTG collaboration aims to direct a significant portion of its capital into initiatives that safeguard natural ecosystems while promoting economic opportunity. This includes investing in sustainable agriculture, clean transport systems, forest restoration projects, and enterprises that contribute to the broader low-carbon transition in Latin America.

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A Milestone in Sustainable Finance for the Region

This partnership reflects a broader shift in the global finance ecosystem, where development banks and institutional investors are aligning more closely around the United Nations Sustainable Development Goals (SDGs) and net zero targets. For Latin America, where the need for climate adaptation and inclusive growth is particularly acute, this alliance could serve as a model for other blended finance ventures.

With up to $1 billion on the table, the IFC and BTG Pactual have set a high bar for what purposeful capital deployment can look like. The next few years will determine whether this vision translates into long-term, on-the-ground impact. If successful, the collaboration could shape the region’s sustainable finance landscape and redefine how public-private partnerships tackle the world’s most pressing challenges.

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