Brazil and IDB Launch $1 Billion PRÓ-BIOMAS Program to Empower MSMEs in Key Biomes

PRÓ-BIOMAS is a strategic expansion of the successful Pró-Amazônia program, which already mobilized $900 million to support green development in the Amazon region.

At the COP30 climate summit, Brazil solidified its leadership in sustainable development with the announcement of a landmark $1 billion financing program aimed at empowering micro, small, and medium-sized enterprises (MSMEs) operating in four of the country’s most ecologically vital biomes: the Amazon, Cerrado, Caatinga, and Pantanal.

The initiative, called PRÓ-BIOMAS, is a joint effort between the Inter-American Development Bank (IDB) and the Brazilian Development Bank (BNDES). A letter of intent was signed by IDB President Ilan Goldfajn and BNDES President Aloizio Mercadante, outlining a shared vision to advance sustainable, inclusive development through targeted financial access for MSMEs that form the backbone of Brazil’s economy.

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Building on the Success of Pró-Amazônia

PRÓ-BIOMAS is a strategic expansion of the successful Pró-Amazônia program, which already mobilized $900 million to support green development in the Amazon region. PRÓ-BIOMAS broadens the geographic and sectoral scope by extending support to other ecologically sensitive areas facing rising threats from deforestation, wildfires, water stress, and environmental degradation.

“PRÓ-BIOMAS strengthens MSMEs in Brazil’s strategic biomes, promoting both economic opportunity and ecological resilience,” said Goldfajn. “It’s an important part of our broader Amazonia Forever program.”

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Financing a Bioeconomy for the Future

The PRÓ-BIOMAS Program is designed to expand credit access for MSMEs pursuing sustainable practices in sectors such as:

• Bioeconomy

• Sustainable agriculture

• Renewable energy

• Environmental services

• Digital and green innovations

MSMEs represent 99% of Brazilian businesses and nearly 50% of all formal employment. However, many of these businesses, especially in rural and remote regions, face significant barriers to accessing affordable, long-term financing. PRÓ-BIOMAS aims to reverse that by directing funds to both urban and rural enterprises, with 75% of financing earmarked for the Amazon biome, and 25% allocated across the Cerrado, Caatinga, and Pantanal.

“Strengthening credit for MSMEs in these biomes means investing in the foundation of our economy while protecting our natural heritage,” said BNDES President Mercadante. “This program is about enabling Brazil’s regions to thrive in a sustainable and just way.”

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Empowering Rural Producers and Marginalized Communities

A central focus of the program is inclusive economic empowerment. The financing will support small-scale producers, family farmers, and traditional communities, with a particular emphasis on historically vulnerable groups including:

• Indigenous communities

• Afro-Brazilian quilombolas

• Women-led enterprises

• Youth entrepreneurs

Funds will be used for purchasing equipment, machinery, vehicles, and other fixed assets that support productivity, digitalization, and low-carbon operations. The investments are expected to significantly boost local job creation, regional equity, and resilience to climate-related disruptions.

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Implementation Framework and Governance

To formalize the IDB financing, BNDES will submit a funding request to Cofiex (External Financing Commission), a regulatory body under Brazil’s Ministry of Planning and Budget. This procedural step is required for any project involving federal guarantees for international financing.

Once approved, accredited financial institutions will act as intermediaries to on-lend the capital to eligible MSMEs. Technical assistance, risk-sharing mechanisms, and digital platforms for loan application and monitoring are also being considered to improve outreach and impact.

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Complementing Broader Green Goals

PRÓ-BIOMAS aligns with Brazil’s broader climate and development policies, including its commitment to net-zero emissions by 2050, ending illegal deforestation by 2030, and developing a green industrial economy. It is also a key delivery vehicle for the Amazonia Forever umbrella program led by the IDB Group.

“This is another clear demonstration of how multilateral development banks can catalyze national commitments with tangible, high-impact financing,” Goldfajn emphasized.

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Looking Ahead: A Model for Sustainable Regional Development

The launch of PRÓ-BIOMAS adds to Brazil’s growing toolkit of climate-resilient financing strategies. As a follow-up to the recent $750 million Pró-Amazônia contract signed between IDB and BNDES in early November 2025, this new program underscores the momentum behind green credit systems for MSMEs in Latin America.

With a focus on local action, inclusive growth, and environmental stewardship, PRÓ-BIOMAS represents a scalable model for other nations looking to blend climate goals with economic justice and rural innovation.