In more detail
Although adoption of the taxonomy is voluntary at first, companies and financial institutions are expected to use it as a parameter for reporting, credit decisions and structuring financial products. The idea is that the requirement will come into force in January 2026.
The government's plan is for the launch to take place alongside a decree that will recognize the taxonomy in Brazilian legislation as a reference system. After that, the regulators of the financial and capital markets (National Monetary Council (CMN), Central Bank of Brazil (BC), Securities and Exchange Commission of Brazil (CVM) and Superintendence of Private Insurance (Susep)) will make the rules.
The taxonomy defines technical and legal criteria for an activity to be considered sustainable. These include making a substantial contribution to environmental or social objectives, not causing significant damage to other objectives and complying with minimum safeguards, such as respect for human rights, environmental compliance and labor standards. One of the most important points is the exclusion of any activity that involves clearing native vegetation - even if legal - from the sustainable scope. From 2030, only properties with no deforestation in the previous five years will be eligible for green label financing.
In addition to the environmental criteria, the Brazilian taxonomy incorporates social goals, such as reducing racial and gender inequalities, which differentiates it from models adopted in other jurisdictions. The document covers eight priority sectors, including agribusiness, energy, sanitation, construction, transportation and social services, and can be used by public and private banks, institutional investors and companies to structure green bonds, sustainable loans and thematic funds.
Recommended actions
For companies and investors, the new taxonomy represents a strategic opportunity to position themselves in a market that is increasingly guided by ESG criteria. Projects that already adopt good social and environmental practices will benefit from easier access to credit, greater attractiveness for investors and alignment with future demands for transparency and corporate responsibility.
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