Strengthening Sustainable Finance and Financial Innovation in Brazil through the Financial Innovation Laboratory (LAB)

The initiative aims to strengthen the institutional capacity of the Financial Innovation Laboratory (LAB) to advance sustainable finance and financial innovation in Brazil, focusing on inclusion, digitalization, and the green transition. It will deliver public-private dialogue, knowledge products, pilots, and capacity building related to instruments such as thematic bonds, a sustainable taxonomy, and carbon market regulation. The Securities and Exchange Commission (CVM) is the direct beneficiary, while the broader Brazilian financial ecosystem—including development banks and private institutions—is an indirect beneficiary. A dedicated component will support CVM’s experimental labs (Test&Learn and Regulatory Sandbox) to test innovative products and services under supervision. The operation combines IDB (W2C window) and Brazilian Cofinancing Account (BCA) resources contributed by market associations, with a 36-month execution period.