The BTG Pactual Timberland Investment Group (BTG Pactual TIG), Conservation International, and the International Finance Corporation (IFC) have won Environmental Finance’s 2025 award for “Sustainability-Linked Loan of the Year – Other” for the IFC’s loan package supporting BTG Pactual TIG’s Latin American reforestation strategy, for which Conservation International serves as impact adviser. This award recognizes the innovative financing model that ties financial incentives to sustainability outcomes, representing an impactful application of green loan principles to large-scale landscape restoration and sustainable forest management.
The IFC loan package provides $50 million in financing to advance BTG Pactual TIG’s strategy of restoring degraded landscapes in Latin America, particularly in the Brazilian Cerrado, one of the most biodiverse, seasonally dry ecosystems in the world. BTG Pactual TIG’s reforestation strategy is one of the largest private-sector restoration efforts in Latin America, with a mission to enhance biodiversity, sequester carbon, and promote sustainable land use. This initiative aims to protect and restore approximately 135,000 hectares of native ecosystems while establishing an additional approximately 135,000 hectares of sustainably managed, FSC-certified commercial timberlands. While the primary focus of this loan is to support global climate and biodiversity goals, it also seeks to generate significant social benefits by creating jobs and expanding economic opportunities in rural communities.
The loan package is differentiated by the incorporation of sustainability-linked incentives that reward progress in biodiversity restoration, habitat connectivity and water resource protection. The financing terms provide BTG Pactual TIG with improved financial outcomes if it meets performance-based metrics, including: the creation of corridors to increase habitat connectivity for plants and animals and the expansion of watershed buffer zones to enhance watershed health security.
These metrics are designed to incentivize the positive impact of restoration and protection efforts while also providing capital for the strategy’s commercial activities.
“The award from Environmental Finance underscores the power of innovative financial instruments in driving tangible environmental impact. Our continued partnership with BTG Pactual TIG, coupled with Conservation International's valuable expertise, demonstrates how sustainability-linked financing can effectively support large-scale ecosystem restoration and create a more resilient future for Brazil and the Latin-American region. By aligning financial incentives with environmental and social outcomes, we are not only contributing to the restoration of ecosystems but also creating economic opportunities for local communities. This initiative exemplifies IFC's commitment to fostering a livable planet for all," said Alfonso García-Mora, IFC's Vice President, Europe, Latin America and the Caribbean.
Mauricio Bianco, from Conservation International Brazil, added: "Scaling up nature-based solutions is key to build a more prosperous and sustainable future. Brazil remains one of the few countries where we can still shift the trajectory of the twin crises we face – climate and biodiversity. But isolated good practices are no longer enough — we need systemic, scalable, and replicable solutions, fast. That’s exactly what BTG Pactual TIG’s strategy is delivering for the restoration agenda in the Brazilian Cerrado, with the support of the IFC loan package. As an Impact Advisor, Conservation International is committed to ensuring that this strategy sets an example for large-scale ecosystem restoration and helps inspire a new standard for the forest sector.”
“We are honored to receive this recognition from Environmental Finance. This award highlights the potential for sustainability-linked investments to drive both financial and sustainability benefits. By embedding biodiversity and watershed health considerations into loan terms, we are ensuring that financial performance is directly tied to meaningful outcomes for nature and people — a model that we hope can inspire other projects to push even further,” said Mark Wishnie, Chief Sustainability Officer at BTG Pactual TIG.
This recognition highlights the increasing role of financial innovation in tackling social and environmental challenges in rural landscapes. By demonstrating that nature-based solutions can be both economically viable and provide benefits for people and nature, the IFC loan to BTG Pactual TIG’s reforestation strategy is a tangible example of the role that private finance can play in advancing development goals.
Awards may not be representative of any one client’s experience and are not indicative of the future performance of the BTG Pactual Timberland Investment Group, LLC or BTG Pactual. The Environmental Finance Sustainable Debt Awards are issued by Environmental Finance, an online news and analysis service that reports on sustainable investment, green finance, and environmental markets. This award was issued on April 14, 2025 and reflects data from 2024. BTG Pactual TIG did not pay a fee to participate in these awards. However, BTG Pactual TIG did pay a fee to Environmental Finance in connection with award logo redistribution rights.
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Contacts
Elaine Irvin
elaine.irvin@btgpactual.com
