Room to Grow: The Economic Case for Forest Restoration in Brazil
The USD 141 billion opportunity in reforesting pastureland in Brazil
Over the next 30 years, large-scale forest restoration of degraded pastureland in Brazil can generate up to USD 141 billion in value while creating more than 350,000 full-time jobs annually. Under the right conditions, forests and biodiversity can be restored across nearly 60 million hectares (Mha) — an area the size of France. These outcomes are within reach, but only if Brazil’s public and private sectors act swiftly.
Brazil’s opportunity to scale up reforestation investments holds enormous promise for people and nature. Four major forces, acting in tandem today, are poised to shape the future of the Brazilian bioeconomy by making reforestation highly profitable, jumpstarting new economic opportunities and simultaneously delivering sustainable jobs, economic growth and nature conservation.
Political Will Is Building
Brazil’s public and private sectors are aligning behind ambitious climate goals. Domestic Brazilian policies, such as the ABC+ Plan, aim to recover degraded pastures, while Brazil’s Nationally Determined Contribution (NDC) commits to a 59–67% emissions reduction by 2035, anchored by large-scale forest restoration.
177 million hectares
Amount of land covered by Brazilian pastures according to data from the Federal University of Goiás Image Processing and Geoprocessing Laboratory and analyzed by Embrapa, around 40% of which have medium vegetation vigor and signs of degradation, while 20% have low vegetation vigor, i.e., severe degradation.
Agricultural Productivity Is Rising
Brazil’s agricultural yields grew 55% between 2000 and 2025, and further gains are expected. This growth frees up low-productivity, degraded pastureland for forest restoration without compromising food security — enabling additional climate mitigation alongside economic growth..
An area the size of France
Amount of Brazil’s agricultural land — up to 64 Mha — that could be available for forest restoration by 2050.
Forest Restoration Is Becoming Profitable
Under a 2°C warming scenario, restoring degraded pastureland with forests can yield up to USD 7,000 per hectare. This increases to USD 21,000 per hectare in more ambitious 1.5°C scenarios. Restoration projects can offer internal rates of return of up to 169%, outpacing traditional cattle ranching returns by up to a factor of five.
USD 60–141 billion
Amount over the next 30 years early adopters restoring the most profitable Mha of pastureland could generate.
Innovative Finance Is Emerging
Capital is increasingly flowing into Brazilian forest restoration and new opportunities are emerging. These include blended finance vehicles, voluntary carbon markets, green bonds, and investments in a growing biodiversity credit market. The Brazil Restoration & Bioeconomy Finance Coalition has committed USD 10 billion to restore 5 million hectares by 2030. Demand for sustainable wood and non-timber forest products from Brazil as part of the nation’s bioeconomy is growing. Leading corporations including Microsoft have already signed offtake agreements for nature-based carbon removals in Brazil through forest restoration, and corporations like Nestlè are funding reforestation and nature-based practices.
Brazil’s Forest Restoration Opportunity Is Rapidly Growing
See the 3 Established Routes for Forest Restoration Projects:
- Voluntary carbon markets
- Green bonds
- Sustainably certified wood products
Learn About the 4 Emerging Pathways for Forest Restoration Profitability:
- Increasing access to domestic investors
- Regulated carbon market
- Biodiversity credits
- Corporate supply chains
Brazil’s Forest Restoration Opportunity Faces 4 Core Challenges:
- Creating markets
- Mobilizing finance
- Executing projects
- Accessing demand
Time for Action
The economic, environmental and social gains identified above are not distant possibilities. They are within reach. At this pivotal moment, Brazil has a clear opportunity to lead the world in combining economic growth with large-scale forest restoration. The financial, social and environmental benefits are real if investors, companies, government and civil society pursue the right actions.
Recommendations for:
- Investors
- Companies
- Standards and value chain operators
- Project developers
- Brazil’s government
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