With support from institutions such as Fundo Vale, the mechanism will direct resources to community-based businesses in forests. 

During COP30, at the Bioeconomy and Innovation Park in Belém, Climate Ventures and Sitawi Finanças do Bem announced the launch of the Financial Instrument for Climate Justice – an innovative community revolving fund that directs concessional capital to businesses with a positive social and environmental impact. The mechanism aims to support initiatives that advance climate justice, with an emphasis on enterprises led by traditional, indigenous and Quilombola groups, expanding access to financial resources and fostering a fairer economy. 

The outcome of Task Force 1 of the Climate Justice Innovation Lab, the instrument was co-created to prioritize these communities, strengthening their productive autonomy and territorial leadership. It brings together accessible financing and comprehensive technical assistance, helping businesses from their early structuring to the consolidation of sustainable production chains in forest-based and impact-economy sectors. These efforts generate local benefits and contribute to environmental protection.  

According to Márcia Soares, Amazon and partnerships manager at Fundo Vale – one of the supporting institutions – the instrument represents an important step forward. “Fundo Vale has been working for years on the forest and climate agenda, thinking about financial instruments and arrangements that enable a fairer forest economy,” she says. In her view, initiatives like this help create real conditions for local communities to spearhead solutions. “When we strengthen community and local businesses, we are simultaneously supporting forest protection, income generation and the reduction of inequalities,” she adds. 

The Financial Instrument for Climate Justice is supported by Fundo Vale, the BMW Foundation Herbert Quandt and the Boticário Group Foundation for Nature Protection.