On Thursday, three Brazilian public banks — the National Bank for Economic and Social Development (BNDES), Banco do Brasil (BB), and Caixa Econômica Federal — in collaboration with the Inter-American Development Bank (IDB), announced an ambitious proposal to create a new Exchange Traded Fund (ETF) targeted at financing sustainability projects in the Amazon.

This initiative, which seeks to introduce the ETF on the São Paulo Stock Exchange (B3) before the COP30 climate summit in Belém, Brazil, in November 2025, aims to make sustainable investments accessible to a broad investor base, both domestically and internationally. By leveraging the global capital market's mechanisms, this ETF, named Amazonia for All, intends to democratize access to investments that prioritize environmental sustainability and social impact.

ETFs originated in the U.S. in the late 1980s and have since become a popular investment vehicle worldwide. The Amazonia for All ETF will be composed of fixed-income securities issued by BNDES, Banco do Brasil, and Caixa Econômica Federal. The return for investors will be based on a reference index specifically designed for this fund. All generated funds will be channeled into loans that support sustainable activities within the Amazon region, aligning with broader global commitments to combat climate change and promote ecological preservation.

During the G20 Finance Ministers and Central Bank Governors meeting in Rio de Janeiro, leaders from these financial institutions emphasized the importance of this initiative for Brazil's future. IDB President Ilan Goldfajn remarked, This cooperation, aimed at joining efforts in favor of the Amazon's sustainable development and based on an innovative instrument in the Brazilian capital market, reinforces BNDES' commitment to the COP30 agenda. Goldfajn also underscored that the ETF would play a crucial role in ensuring the Amazon's sustainability.

BNDES President Aloizio Mercadante echoed these sentiments, noting that the fund represents a significant stride towards preserving the Amazon and fostering sustainable development within the region. This collaborative effort aligns with the objectives of the Green Coalition, an international alliance of public development banks committed to promoting sustainable development in crucial ecological areas like the Amazon.

The innovative aspect of this initiative lies in its approach to democratize investments. By setting the share price at approximately R$100, the Amazonia for All ETF provides an entry point for both small and large investors, ensuring broad participation. This accessibility is expected to galvanize significant financial support for sustainable projects in the Amazon, contributing to both ecological preservation and economic development.

Moreover, the involvement of the IDB brings a wealth of expertise and resources to the table, enhancing the technical and financial support available to the Brazilian banks. This collaboration is crucial for the ETF's success, ensuring that the infrastructure and mechanisms required to manage investments and allocate funds effectively are robust and reliable.

By combining the financial strength of three of Brazil's largest public banks with the developmental focus of the IDB, the Amazonia for All ETF is poised to become a pioneering model for sustainable investment. It represents a cohesive effort to tackle one of the most pressing environmental issues of our time — the preservation of the Amazon rainforest.

As the ETF's launch date approaches, stakeholders across the financial, environmental, and governmental sectors will be closely monitoring its progress. The initiative also comes at a pivotal moment, as global attention increasingly focuses on the need for substantial investment in green and sustainable projects to combat climate change effectively.

In summary, the Amazonia for All ETF illustrates a proactive approach to environmental sustainability by harnessing financial instruments to foster substantial, long-term investments in the Amazon. It reflects a broader trend towards greater environmental responsibility within the financial sector, highlighting the role of public and international banks in driving forward the sustainability agenda.