Large-Scale $672 Million Investment Fuels Restoration of Brazil's Cerrado Biome
Edited by: Anulyazolotko Anulyazolotko
A substantial financial commitment totaling $672 million has been mobilized to execute a comprehensive strategy for the reforestation and preservation of the Cerrado biome, which ranks as Brazil's second-largest ecosystem. This significant capital infusion, backed by the Temasek-owned platform GenZero, is specifically earmarked for revitalizing degraded landscapes across Latin America, with a primary focus on this exceptionally biodiverse Brazilian savanna. The overarching objective of this initiative, spearheaded by the BTG Pactual Timberland Investment Group (TIG), is to secure $1 billion in funding dedicated to the conservation, restoration, and reforestation of approximately 270,000 hectares of compromised land within the region.
The core of the initiative centers on the recovery and protection of roughly 270,000 hectares in an area where the Cerrado, covering nearly a quarter of the nation's territory, has suffered extensive damage due to land conversion, predominantly for cattle pasture. To date, the project has already successfully reinstated more than 11,000 hectares of native Cerrado landscapes. This early success is crucial for establishing interconnected habitats vital for the local fauna. Globally recognized as the most biologically diverse savanna ecosystem, the Cerrado also plays a critical role as the headwaters for South America's largest river basins, underscoring its profound ecological importance.
The detailed plan outlines a dual approach: restoring approximately 135,000 hectares of natural forests and planting millions of trees across an additional 135,000 hectares for sustainable commercial forestry. This commercial component will adhere to stringent certification standards set by the Forest Stewardship Council (FSC). This synergistic model, which integrates robust conservation efforts with sustainable production, demonstrates the potential for large-scale ecological transformation when science and finance are effectively combined. Furthermore, this ambitious undertaking is projected to generate around 2,700 jobs, encompassing both direct and indirect employment, thereby offering a viable economic alternative to traditional, high-impact agricultural practices.
Ensuring the project delivers on its environmental and social promises involves the active participation of Conservation International, which serves in the crucial capacity of impact advisor. Moreover, strategic partnerships have been forged with leading academic institutions, such as the Federal University of Viçosa (UFV), to pilot and validate various cutting-edge restoration methodologies. Landscape initiatives supported by Conservation International have previously proven highly effective, notably in the state of Tocantins, where they facilitate the adoption of low-carbon, regenerative practices in the production of both soy and beef.
GenZero, the investment platform established by Temasek, maintains a targeted focus on accelerating global decarbonization through nature-based solutions. Their involvement in the Cerrado restoration project is therefore a logical and essential extension of their global strategic mandate. The anticipated success of this endeavor highlights that even territories previously written off as degraded pastures can be successfully transformed into productive and resilient ecosystems, setting a powerful precedent and serving as a scalable model for restoration efforts throughout the entire region.
Sources
Exame
GenZero’s investment brings BTG Pactual Timberland Investment Group’s Latin American Reforestation Strategy to US$672 million
Conservation International is finalist at the world’s largest geotechnology event with an innovative Cerrado restoration strategy
GenZero is latest investor in Brazilian bank's reforestation plans
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