The deal marks the first biodiversity label ever applied to a restoration project in Brazil, with a “Dark Green” rating awarded by S&P Global.

re.green, a Brazilian company specialized in large-scale forest restoration, has secured a disbursement of R$ 80 million from the Brazilian Development Bank (BNDES) through the Climate Fund. A year ago, the company was the first to sign a financing agreement under the bank’s Arco da Restauração program.

The funds will be used to support restoration activities in the Atlantic Forest and Amazon biomes, covering over 16,000 hectares of priority areas for climate mitigation, biodiversity recovery, and local development.

Structured with a guarantee from Bradesco and ESG advisory from Bradesco BBI, the operation is the first in Brazil to receive biodiversity labeling for a restoration project, recognized by S&P Global Ratings. The agency awarded re.green’s project a “Dark Green” rating — the highest classification in the international Shades of Green methodology — acknowledging its alignment with global sustainable finance principles (ICMA, LMA, SBG) and the IFC Biodiversity Finance Reference Guide.

“This is a dual milestone: the use of private guarantees to unlock public capital, and the technical recognition of forest restoration as a concrete solution for climate, biodiversity, and territorial development,” says Thiago Picolo, CEO of re.green. “It’s a replicable model to transform nature into essential infrastructure for the country.”

The financing reinforces BNDES’s strategy for the Climate Fund, which seeks projects that combine measurable environmental benefits, economic feasibility, and regional impact. re.green is the first company to access this mechanism with a dedicated focus on biodiversity, backed by international technical evaluation.

This transaction adds to other recognitions re.green has received, such as the AAe rating from BeZero Carbon, one of the world’s leading carbon credit rating agencies — placing re.green’s projects among the most highly rated globally for climate integrity.

re.green’s operations already cover more than 26,000 hectares restored across the Amazon and Atlantic Forests. Over 4.5 million seedlings of more than 80 native species have been planted in partnership with 29 local nurseries. Field activities have created more than 200 direct jobs and enabled the training of around 300 people in seed collection, fire prevention, and stingless beekeeping.

Aloizio Mercadante, President of BNDES, stated:
“The release of Climate Fund resources for restoration in the Atlantic Forest and Arco da Restauração shows that we have a powerful instrument to finance the recovery of degraded areas in Brazil — a clear demonstration of the strength of this Fund, made available by President Lula and the Federal Government to allow BNDES to decisively combat the effects of climate change in our country.”

By sharing risk among different stakeholders, the structure contributes to making ecological restoration more attractive as an asset class, building market confidence and consolidating nature-based solutions as part of Brazil’s new climate economy.

Felipe Thut, Head of Fixed Income at Bradesco BBI, adds:
“At Bradesco BBI, we’re proud to structure a transaction that not only brings financial innovation, but also reinforces our commitment to a more resilient and regenerative economy. We need to pave the way for more projects like this to emerge.”

Direct impact

The funding will cover forest restoration activities under re.green’s first contract aimed at generating high-integrity carbon credits. This includes soil preparation, planting and maintaining native species — including those classified as threatened — as well as monitoring with drones and LiDAR, and direct engagement with local communities.

Currently, re.green is restoring and conserving over 26,000 hectares in priority regions of the Amazon and Atlantic Forests. More than 4.5 million seedlings of over 80 native species have been planted through a network of 29 partner nurseries. Field operations have created over 200 direct jobs and trained nearly 300 people in essential tasks such as seed collection, fire prevention, and meliponiculture (stingless beekeeping).

Read the full article at Reuters.