Regulation of Sustainable Bonds in Brazil

Advances and Perspectives

Abstract

This study analyzes the regulation of sustainable debt securities in Brazil, highlighting advances, challenges, and future prospects. It explores the financialization of environmental issues and the emergence of green bonds as key instruments for financing projects with socio-environmental benefits. Despite the significant growth of the global market, the study identifies regulatory gaps and vulnerabilities in the Brazilian context, such as the lack of standardization and the predominance of private certifications, which foster greenwashing practices. Based on a bibliographic and documentary analysis that draws on resolutions from the Brazilian Securities and Exchange Commission (CVM), the national framework for sustainable bonds, and the Brazilian sustainable taxonomy, the study examines recent initiatives aimed at enhancing transparency and governance. The analysis also discusses the Ferrogrão case, highlighting the dilemmas between green financing and socio-environmental impacts. The study concludes that although sustainable bonds have the potential to mobilize resources toward sustainability, the absence of robust oversight and effective regulation limits their ability to generate tangible environmental impacts.