Petrobras and Régia Capital create bioeconomy fund

By Petrobras

February 6, 2025

This is a machine translation of the press release originally published in Portuguese

Petróleo Brasileiro S.A. – Petrobras informs that it has structured an Impact Fund for Socio-Environmental Projects of Bioeconomy and Nature-Based Solutions (Petrobras Bioeconomy Fund) in conjunction with Régia Capital , a manager focused on sustainable investments and financial solutions, which is the result of a strategic partnership between JGP and BB Asset . Initially, Petrobras allocated R$50 million to the Fund and funds managed by Régia Capital, another R$50 million.

This is a voluntary socio-environmental investment by Petrobras that complements the company's other Social Responsibility initiatives. The Fund aims to support socio-environmental projects in Brazil, with the goal of transforming them into sustainable businesses with a positive impact on a large scale, preserving the capital allocated by Petrobras and leveraging these initiatives. Petrobras intends to reinvest the financial returns so that the projects gain scale in socio-environmental benefits.

The selection of projects will prioritize initiatives in areas considered critical for climate action and biodiversity preservation; actions in areas under pressure for deforestation; initiatives with a positive impact on job and income generation; projects with the potential to generate high-integrity carbon credits; and biodiversity credits and restoration of fauna and flora.

The Petrobras Bioeconomy Fund is one of the first in Brazil to adopt the Impact Linked Compensation model, which aligns financial incentives with sustainability goals. In other words, the fund's performance rate varies according to the projects' socio-environmental impact rate.

The Fund also has its own governance for project selection, which considers indicators of economic, social and environmental impacts. With these innovative financial mechanisms, the Fund aims to become a scalable hub to support the development of the Brazilian bioeconomy sector.

Régia Capital was chosen as the manager of the Petrobras Bioeconomy Fund through a competitive process that received proposals from several institutions. Régia Capital is a sustainable investment platform created by JGP and BB Asset.

The creation of the Fund is aligned with Petrobras' 2050 Strategic Plan and 2025-2029 Business Plan, which include guidelines for promoting environmental conservation and restoration actions throughout Brazil.