Tackling the Climate Crisis? Why Brazil Should Be Your Launchpad
by Murilo Johas Menezes, General Partner at Positive Ventures
The climate crisis demands bold, scalable, and inclusive solutions—and it’s time to expand the focus beyond the usual players. While much of the innovation spotlight shines on the Global North, Brazil stands out as an underleveraged opportunity. Home to the largest economy in Latin America and a leader in global sustainability, Brazil offers a unique combination of market potential, clean energy leadership, and natural capital. For climate entrepreneurs and investors, Brazil isn’t just a viable option; it might be a game-changing launchpad.
Here are four compelling reasons why landing in Brazil should be a strategic priority for most climate entrepreneurs and investors.
1. A Geopolitically Neutral and Diverse Market
Latin America, and Brazil in particular, enjoys a level of geopolitical stability that many other regions cannot claim. Brazil’s diplomatic stance is one of neutrality and amicability, fostering strong ties across continents. Geographically, it is equally reachable from major markets in Asia, Europe, and North America, making it a convenient hub for global operations.
Moreover, Brazil’s population of over 220 million people represents a substantial consumer base, three times larger than Germany’s. With a regional GDP double that of India and a purchasing power on par with China’s rising middle class, Latin America as a whole—with 660 million people—presents enormous market potential for scalable climate solutions.
Brazil’s cultural diversity also makes it an ideal testbed for climate solutions that need to work across different demographics and economic classes. And finally, the country’s large domestic market provides sufficient demand to sustain unicorn-scale companies across various sectors. For climate entrepreneurs, this means a chance to refine and scale solutions within a robust ecosystem before taking them to other markets.
2. An Emerging Hub for Innovation
Brazil is rapidly establishing itself as a hotbed for innovation. The country’s venture capital ecosystem has matured significantly, attracting both local and international investors. Over the past few years, the country has produced more than 25 unicorns—including Nubank, Nuvemshop, Olist, Cloudwalk, Neon, Quinto Andar, and iFood—fueling a wave of entrepreneurial talent. Seasoned entrepreneurs who emerged from these successful companies are now turning their attention to more purpose-driven ventures, particularly in the climate space. While climate startups in the region may not yet have reached unicorn status, they have collectively raised hundreds of millions of dollars across Latin America. Notable examples include Eureciclo, Backchannel, Ruuf, NotCo, Lilac, Andes, Pachama, Solfácil, and Terradot, among many others.
Beyond its thriving startup ecosystem, Brazil boasts globally competitive industries in aviation, banking, and agriculture. The country is also home to cutting-edge research institutions focused on critical areas like renewable fuels and agricultural innovation. Established research centers such as Embrapa (agriculture) and IPEF (forestry) play a key role in advancing climate solutions, while new initiatives in AI, like C4AI at the University of São Paulo and the Center for AI at ITA, are expanding the frontiers of innovation. These research hubs, alongside emerging policies and funding mechanisms, create a fertile environment for startups and global players looking to enter the Brazilian market. For instance, programs promoted by FINEP and BNDES, which are local development agencies, offer grants and development loans for the advancement and deployment of biological inputs in regenerative agriculture. These strengths position Brazil as a prime ecosystem for collaboration between startups, established industries, research centers, and investors, creating unique opportunities to pilot and rapidly scale new technologies.
3. A Clean Energy Powerhouse
Among the world’s largest economies, Brazil stands out as a leader in clean energy, with approximately 90% of its electricity coming from renewable sources, a feat unmatched by most industrialized nations. This provides the country with a significant competitive edge in emerging sectors such as green hydrogen production, sustainable aviation fuels, and industrial decarbonization. For example, Brazil is already a global leader in producing high-quality, cost-competitive green steel. Companies like Gerdau and Aço Verde do Brasil have leveraged the country’s abundant renewable energy to decarbonize their production processes. Meanwhile, major players like Vale are partnering with climate-tech leaders such as H2 Green Steel—backed by Just Climate, an affiliate of Generation Investment Management—to accelerate the transition to low-carbon steelmaking.
Brazil's clean energy matrix complements its industrial strengths in sectors such as ethanol, pulp and paper, construction materials, cement, and mining. These billion-dollar industries are primed for AI-driven efficiencies that reduce carbon footprints and optimize resource use. Additionally, Brazil’s clean energy grid presents a unique opportunity to attract and scale new growing industries with high energy demands, such as data centers, effectively turning the country into a global exporter of clean energy.
Although Brazil’s energy matrix is already one of the cleanest in the world, thanks to its abundant hydro potential, in addition to its wind and solar strong incidence, there is still significant room for further development. Residential buildings, for instance, have yet to transition fully to renewable energy, creating opportunities to enhance resilience and reduce dependence on the grid. Companies like Solfácil and 77sol are leading the charge in Brazil’s residential solar transition, much like Ruuf is doing across other regions in LatAm.
Startups focusing on decarbonization can leverage Brazil’s structural advantages to build solutions that are not only cost-effective but also capable of meeting the growing demand for greener operations worldwide. By aligning with Brazil’s clean energy infrastructure, companies can tap into premium markets that value sustainable practices.
4. Unparalleled Natural Capital
Brazil stands out not only as a global leader in renewable energy but also as a treasure trove of natural resources, valued at over $22 trillion (gold, copper, iron, oil & gas). However, these estimates overlook Brazil’s unique position as a tropical country with vast land availability, offering unparalleled opportunities in sustainable agriculture, carbon capture, and biodiversity conservation. Many of the climate ventures mentioned earlier are already leveraging these advantages to drive innovation and impact in the region.
As the world’s largest food exporter and the third-largest food producer, Brazil is often referred to as the “world’s breadbasket.” It offers a unique landscape for startups revolutionizing supply chains, enhancing productivity, and reducing environmental impact. Beyond food systems, Brazil offers some of the most cost-effective nature-based solutions for carbon sequestration. Studies show that carbon capture costs in Brazil are among the lowest globally, reinforcing the country’s strategic importance in offsetting emissions. Local climate startups are leveraging these macro-dynamics to drive impact at scale. Companies like Re.green and Mombak are partnering with major tech firms to accelerate reforestation efforts in the Amazon and Atlantic Forests.
As global corporations invest in nature-based carbon removal, Brazil’s reforestation startups are positioned to become key partners for multinational climate goals. Brazil’s vast natural wealth provides fertile ground for companies bringing innovation to harness its resources, from sustainable mining to regenerative agriculture, carbon markets and beyond.
Bridging the Gap
Despite Brazil’s economic strengths, Latin America remains overlooked in global investment conversations—often due to its neutrality and geographic distance from traditional financial hubs. This relative isolation is further reinforced by the region’s leadership’s struggle to effectively position its strengths on the global stage, compounded by recurring political shifts and a lack of long-term strategic planning. Yet, one could argue that Latin America—Brazil in particular—boasts more established markets than many of its emerging-market peers. From a robust consumer base to well-developed financial industries, the region outperforms many economies that receive greater investor attention, such as India, other emerging Asian markets, and Africa, often leaving Latin America unfairly overlooked.
What the region lacks in visibility, however, it makes up for in potential. Organizations like Positive Ventures are working to bridge this gap, bringing solutions to LatAm and vice-versa, by establishing offices in the U.S. and Europe and co-investing with other leading investors that care about Planet Prosperity like MCJ, Breakthrough Energy, Prelude Ventures, Collaborative Fund, Climate Pledge, General Catalyst, Lowercarbon Capital, among many other partners. These partnerships accelerate the growth of startups that recognize Brazil and Latin America as their next big market.
In a polarized world, we need leaders, institutions, and entrepreneurs who build bridges. With its natural charisma, resilience, and capacity for innovation even under adverse conditions, Latinos are ready to put the region at the forefront in the fight against climate change. For climate entrepreneurs and investors, LatAm isn’t just an emerging market—it’s a climate opportunity waiting to be unlocked.
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👩💻 Events
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