The project aims to protect and restore 49,458 hectares in Mato Grosso do Sul, combining forest restoration, environmental conservation, and the generation of carbon credits.
The Banco Nacional de Desenvolvimento Econômico e Social (BNDES) has approved financing of ~US$ 37.9 million (R$ 200 million) for Camapuã Agropecuária Ltda., a company controlled by BTG Pactual Timberland Investment Group’s (BTG Pactual TIG) Latin American Reforestation Strategy, to support large-scale ecological restoration and conservation in the Cerrado biome, in the state of Mato Grosso do Sul.
By investing in projects that are dedicated to the protection and restoration of native ecosystems across half the strategy’s footprint, and sustainable commercial tree farms across the other half, BTG Pactual TIG seeks to integrate the protection and restoration of important habitats with sustainable commercial production.
The debt financing will help advance restoration and conservation activities for the Brazilian component of the reforestation strategy, with the goal of restoring and protecting approximately 49,458 hectares of land in Brazil. To date, more than 52,000 hectares have already been acquired in Cerrado biome of the country under this strategy. The funding will enable the restoration of 24,850 hectares of consolidated areas, carried out without removing native vegetation or engaging in commercial timber exploitation, as well as the conservation of 24,608 hectares of preserved land.
Restoration activities will rely exclusively on native species and draw on technical guidance from the Federal University of Viçosa, with which BTG Pactual TIG maintains an ongoing research collaboration studying various restoration techniques across 81 hectares of test plots. Conservation measures across the strategy’s footprint include habitat monitoring, invasive species control, fire prevention, and initiatives to strengthen ecological connectivity through the creation of native vegetation corridors.
“BNDES has been coordinating and promoting forest restoration as a crucial tool to combat the climate crisis, reduce greenhouse gas emissions, and foster sustainable development, which is a priority for President Lula’s government,” emphasized BNDES president Aloizio Mercadante.
“We believe that restoration efforts are the most effective when they can be expanded at scale, which requires a joint effort in an efficient and sustainable model. BNDES’ financial support will help advance our goal of protecting and restoring Brazil’s forests as part of a large-scale investment strategy” said Roberto Sallouti, CEO of BTG Pactual.
Conservation International serves as Impact Adviser to the strategy, providing input and advice to help BTG Pactual TIG achieve positive environmental, climate, and social impacts related to the conservation and restoration aspects of the initiative. Beyond environmental benefits, the strategy is expected to generate high-integrity carbon credits, advancing climate mitigation efforts and supporting the development of nature-based economic opportunities in surrounding communities.
The conversion of consolidated areas into native vegetation represents a significant environmental improvement, fully supported by Brazilian legislation. This initiative demonstrates that it is possible to combine scientific knowledge, private investment, and environmental conservation to generate significant positive impacts.