BIOFIN in Brazil had its first phase of activities carried out between 2017 and 2019. Following the proposed methodology, the BIOFIN project in Brazil prepared the following studies:
- PIR - Biodiversity Policy and Institutional Review;
- BER – Biodiversity Expenditure Review;
- FNA - Financial Needs Assessment;
- BFP - Biodiversity Finance Plan
The project is currently in its second phase, focused on implementing financing solutions with the potential to promote the conservation and sustainable use of biodiversity. The project is coordinated by UNDP Brazil in partnership with the Ministry of Economy. In the first phase of the project, the Ministry of Environment was also part of the partnership.
The overall objective of the project is that bioeconomy activities are strengthened and result in productive and competitive investment alternatives, increasing the value of preserved ecosystems and biodiversity and acting as a barrier to deforestation and degradation.
In its second phase of project in Brazil, BIOFIN has been developing solutions to increase funding for biodiversity and for the financial sustainability of bioeconomy activities. Funding challenges need to be faced from two sides. From the financing supply side, it is necessary to understand the current state of financing, the adaptation needs for existing financing mechanisms, and gaps in financial products and financing mechanisms for strategic bioeconomy activities, considering regional realities. On the demand side for financing, it is extremely important that rural producers, small entrepreneurs, micro and medium-sized companies increase their knowledge about the available sources of financing and how to access them.
BIOFIN has mapped the state of financing for the bioeconomy in Brazil and, in particular, in the Amazon.
- Identified that most of the financing is aimed at the first stages of production. There are few financing mechanisms and the availability of resources for the stages of generation of ideas, research and development and development of products and services based on higher added value biodiversity. Therefore, it is necessary to develop these mechanisms.
- One of the key results of the study is a platform to search for financing mechanisms, that displays existing financing mechanisms, and allow the use of different filters, such as the stages of the innovation journey, stages of value chains, type of resources, among others. This tool will be of great value for different stakeholders to get hold and facilitate the access to the available resources.
1. Develop capacities and mainstream knowledge about financing for biodiversity into key sectors (public, private, micro, small and medium entrepreneurs, local groups, others): The project seeks to work with local partners in activities of discussion and dissemination of the subject studied, in this case financing for the bioeconomy. Three activities were planned for this solution, which are (i) the elaboration of a report on the challenges for bioeconomy and implications for bioeconomy finance; (ii) support to the Amazon Bioeconomy Investment Innovation Forum, in both working with the Amazonas State Government, and (iii) leadership and training on financing.
2. The business environment for bioeconomy activities is improved by unlocking public and private finance: The project seeks to improve the bioeconomy investment environment by unlocking potential public and private investments. Therefore, the first activity is to analyze the state of financing for bioeconomy in Brazil, and best practices in the world, to develop roadmaps providing improvement opportunities for selected finance mechanisms.