The Asian Infrastructure Investment Bank (AIIB) and Brazil’s Ministry of Finance have signed a letter of intent to strengthen cooperation on sustainable finance, investment mobilisation and carbon markets, including potential support for Brazil’s regulated emissions trading system.
Signed on the sidelines of the 31st UN Climate Change Conference (COP31) in Antalya, Türkiye, the agreement provides a framework for knowledge exchange and capacity building in areas such as blended finance instruments and project appraisal methodologies. The institutions will also explore opportunities to connect AIIB member economies and Asian investors with Brazil’s sustainable investment platforms, including Eco Invest Brasil.
The agreement is intended to build on existing cooperation between the two institutions and strengthen links between Brazil’s climate finance initiatives and investors across Asia.
Xiaohong Yang, AIIB’s Director General for Public Sector Clients Departments East-West and North, signed the letter on behalf of the bank. Brazil was represented by Cristina Reis, Vice Minister and Head of the Extraordinary Secretariat for Carbon Markets; Livia Oliveira, representing the Secretariat for International Affairs; and Mario Gouvêa, representing the National Treasury.
Cooperation to support Brazil’s regulated carbon market
The letter of intent identifies Brazil’s regulated carbon market as one of the areas for potential cooperation. The institutions will explore ways to support its development through knowledge exchange, institutional capacity building and connections with international investors.
Brazil established its regulated carbon market, the Brazilian Greenhouse Gas Emissions Trading System (Sistema Brasileiro de Comércio de Emissões – SBCE), through Law No. 15,042 in December 2024. The system is designed to introduce an emissions cap-and-trade framework, with implementation taking place in stages.
According to Brazil’s Ministry of Finance, the initial implementation phase focuses on developing the regulations required to operate the system. Operators will begin preparing emissions-reporting instruments in 2027, followed by mandatory monitoring plans and annual emissions reporting during 2028–2029. The first National Allocation Plan and the start of the carbon-asset market are scheduled for 2030 onwards.
The proposed cooperation with AIIB comes as Brazil advances the regulatory and institutional arrangements needed to establish the market. However, the letter of intent does not announce a specific investment, carbon-credit transaction or financing facility for the SBCE.
Eco Invest Brasil provides a platform for sustainable investment
The agreement also identifies Eco Invest Brasil as a platform through which AIIB members and Asian investors could connect with sustainable investment opportunities in Brazil.
The programme, established under Brazil’s Ecological Transformation Plan, aims to mobilise domestic and international private capital for long-term sustainable projects. Its financial instruments include blended finance, mechanisms to mitigate foreign-exchange volatility, credit lines for currency hedging and support for project development.
The programme covers areas including energy transition, bioeconomy, circular economy, green infrastructure and climate adaptation.
The AIIB–Brazil agreement envisages knowledge exchange on blended finance and project appraisal methodologies, which could help strengthen the development and assessment of investment opportunities. The institutions have not disclosed specific projects, investment targets or timelines under the new letter of intent.
Partnership builds on AIIB’s climate financing for Brazil
The latest agreement builds on AIIB’s existing support for Brazil’s Ecological Transformation Plan.
In November 2025, AIIB announced approval of USD 1 billion in Climate-Focused Policy-Based Financing for Brazil’s Value-Enhancing Reforms for Development and Ecological Sustainability (VERDES) programme. The financing supports policy and institutional measures covering sustainable finance, energy transition, green infrastructure and climate resilience.
The programme also identifies carbon markets and blended climate finance among the policy and financial instruments relevant to Brazil’s ecological transformation.
AIIB Director General Xiaohong Yang said the new partnership would turn the existing policy-based relationship into a platform for knowledge exchange on blended finance and private capital mobilisation, connecting Brazil’s climate finance initiatives with partners across Asia and beyond.
Bioenergy Business Analysis
The AIIB–Brazil letter of intent adds an international investment dimension to Brazil’s efforts to develop its regulated carbon market and sustainable finance ecosystem. Its significance lies in the potential to connect Brazil’s emerging market infrastructure and investment platforms with Asian financial institutions and investors.
For Brazil, the development of the SBCE will require regulatory implementation, emissions monitoring and reporting systems, market governance and the establishment of carbon assets. International cooperation could contribute technical knowledge and help strengthen institutional capacity as the system moves towards its planned operational stages.
Eco Invest Brasil offers another potential route for collaboration by using blended finance and risk-mitigation instruments to mobilise private investment in sustainable projects. The proposed exchange of project appraisal methodologies could also support the preparation of investment opportunities for international capital.
