How Nature-Based Innovation Is Turning Small Farms into Water Engines in Brazil’s Atlantic Forest

World Bank-backed Reflorestar Program shows how data, incentives and ecosystem restoration can multiply water security, climate resilience and rural incomes.

In the mountains of Brazil’s Caparaó Range, rural producers Tânia and Henrique Gravel have achieved what once seemed impossible: transforming a degraded 25-hectare property with a single water spring into a thriving landscape fed by 14 restored springs.

Their success is not accidental — it is the result of daily reforestation, biodiversity restoration and long-term ecosystem management, supported by the Reflorestar Program, an innovative public policy backed by the World Bank and the government of Espírito Santo.

Since 2011, Reflorestar has invested more than R$100 million (US$18.4 million) to protect watershed headwaters, improve integrated water management and reduce flood and drought risks — using nature-based solutions paired with financial incentives.

Paying for Ecosystems That Work

At the core of Reflorestar is a payment for environmental services (PES) model, which compensates rural producers for restoring and conserving native Atlantic Forest vegetation.

The approach has delivered measurable economic and environmental returns, according to the World Bank.

“Beyond supporting producers, Reflorestar has helped maintain water quality in reservoirs used for supply, reducing spending on infrastructure, sediment dredging and chemical treatment,” said Catalina Ramirez, Water and Sanitation specialist at the World Bank and manager of the Waters and Landscapes II Project.

Trees as Infrastructure

The science is clear: trees act as natural water regulators.

“Planting trees increases water infiltration and retention in the soil, preventing sediment from being transported into water sources,” explained Viviane Virgolim, co-manager of Waters and Landscapes II. “That’s why reforestation improves both water quality and quantity — even hundreds of kilometres downstream.”

The Gravel family’s restored springs contribute to water security for communities as far as Vitória, the state capital, located 220 km away.

Scalable Results Across Thousands of Farms

Over the past 15 years, Reflorestar has:

• Reached more than 5,000 rural properties

• Restored 12,000 hectares of degraded land

• Conserved 13,000 hectares of native forest

In communities like Feliz Lembrança, where degraded cattle pasture once caused severe erosion, farmers now practice agroforestry, intercropping, beekeeping and wastewater treatment, producing high-quality coffee with certified origin — while delivering clean water back to river systems.

“What used to wash straight into rivers is now retained and filtered by restored land,” said Fabio de Souza, leader of the Feliz Lembrança Association. “That is a service to humanity.”

Tech-Enabled Nature Solutions for a Climate-Stressed Future

The current phase of Reflorestar is scaling up small, high-impact physical interventions, including:

• Contour trenches and micro-catchments

• Biodigesters for wastewater treatment

• Soil-water retention systems

These interventions combine low-cost engineering with ecological design, increasing resilience to floods, droughts and climate volatility.

Call to Action: A Blueprint for Climate-Tech and Agri-Tech Innovation

For climate-tech startups, agri-tech platforms, water-risk analysts, ESG investors and policymakers, Reflorestar offers a proven model to:

• Monetize ecosystem services through data-backed incentives

• Use restoration as infrastructure

• Integrate biodiversity, water security and rural livelihoods

• Scale nature-based solutions with measurable returns

“This is an example we want to replicate in other states,” Ramirez said.

As climate risks intensify globally, Espírito Santo’s experience shows that investing in forests is not charity — it is systems engineering.