AIIB, Brazil deepen climate finance and carbon market cooperation at COP31

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AIIB, Brazil deepen climate finance

Highlights

AIIB and Brazil’s Ministry of Finance signed a letter of intent at COP31 to deepen cooperation on sustainable finance, investment mobilization, and regulated carbon markets.
The partnership includes knowledge exchange and capacity building on blended finance and aims to support Brazil’s Ecological Transformation Plan and carbon market infrastructure.
The agreement enhances pathways for private and institutional capital into Brazil’s climate transition while providing Asian investors greater access to sustainable investment platforms like Eco Invest Brasil.

Partnership scope and financing agenda

As reported by AIIB, the bank and Brazil’s Ministry of Finance have agreed to strengthen cooperation on sustainable finance, investment mobilization and carbon markets under a letter of intent signed on the sidelines of COP31 in Türkiye.

The arrangement includes knowledge exchange and capacity building on blended finance instruments and project appraisal methodologies. The two sides also plan to explore support for Brazil’s regulated carbon market and links between AIIB members, Asian investors and Brazil’s sustainable investment platforms, including Eco Invest Brasil.

The partnership builds on AIIB’s climate-focused policy-based financing for Brazil, signed in September, which supports policy reforms under Brazil’s Ecological Transformation Plan.

Implications for Brazil and Asian investors

The agreement signals a broader effort to channel private and institutional capital toward Brazil’s climate transition while giving Asian investors greater access to the country’s sustainable investment pipeline. It also reinforces Brazil’s push to develop market infrastructure around climate finance and regulated carbon trading.

The letter was signed for AIIB by Xiaohong Yang, Director General, Public Sector Clients Departments East-West and North. On the Brazilian side, the signatories were Cristina Reis, Vice Minister and head of the Extraordinary Secretariat for Carbon Markets, Livia Oliveira for the Secretariat for International Affairs, and Mario Gouvêa, representing the National Treasury on the Executive Committee of the Eco Invest Brazil Program and chair of the Supervisory Board of the Fiscal Recovery Regime for the States and the Federal District.

Yang said the next step is to turn the policy-based partnership with Brazil into a platform for knowledge exchange on blended finance and private capital mobilization, connecting Brazil’s climate finance initiatives with partners across Asia and other regions.

As we noted earlier, ADB COP31 commitments highlighted new climate and resilience financing agreements announced in Türkiye.

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