BTG Pactual Closes Record $1.24B Reforestation Fund, Signaling Shift in Nature Investment
BTG Pactual Timberland Investment Group (TIG) has closed a $1.24 billion reforestation fund, marking the largest vehicle of its kind to date and underscoring growing momentum behind nature-based investment strategies. Developed in partnership with Conservation International, the initiative is positioned as a scalable model that blends commercial forestry with ecosystem restoration across Latin America.
The strategy aims to restore and reforest approximately 660,000 acres of degraded land, split between conservation of native ecosystems and the development of sustainably managed commercial plantations. By combining environmental restoration with revenue-generating forestry operations, the fund seeks to demonstrate that long-term financial returns can align with climate action, biodiversity protection, and rural economic development.
Investor participation reflects a broad coalition of global institutions, including development finance organizations, pension funds, and corporate investors. Their involvement signals increasing confidence that natural capital can function as a viable asset class, particularly when structured to deliver both measurable impact and durable returns.
Implementation is already underway, with early activity concentrated in Brazil’s Cerrado region, one of the world’s most biodiverse yet heavily degraded ecosystems. To date, nearly 29 million trees have been planted across more than 64,000 acres, while over 50,000 acres are under restoration and more than 53,000 acres have been placed under conservation protection. The project has also identified over 1,000 plant and animal species and expanded protections for hundreds of miles of waterways, contributing to habitat connectivity and ecosystem resilience.
Beyond environmental outcomes, the strategy is designed to support local economies. It is expected to generate thousands of jobs over time, offering a significant increase compared to previous land uses such as cattle ranching. Community-focused initiatives, including native seed collection programs, are already creating new income streams for local populations while supporting restoration efforts.
A key component of the initiative is its emphasis on scientific research and continuous improvement. In collaboration with academic partners in Brazil, the project is testing different restoration techniques at scale to determine the most effective and cost-efficient methods. Early results point to strong progress in vegetation growth and natural regeneration, with findings expected to inform future restoration projects across the region.
The fund is also positioned to generate large volumes of high-integrity carbon credits, contributing to global climate targets. Its first carbon project has already achieved a notable milestone by becoming the first to issue credits under a newly approved international methodology, reinforcing its role in setting standards for quality and transparency in the voluntary carbon market.
In April 2026, the strategy’s initial carbon initiative, Brazil Cerrado 1, became the first project worldwide to receive issued credits under Verra’s VM0047 afforestation, reforestation, and revegetation (ARR) methodology. This framework is one of the standards endorsed by the Integrity Council for the Voluntary Carbon Market (ICVCM) through its Core Carbon Principles (CCPs), which are widely regarded as the global benchmark for carbon credit quality and integrity.
