FINACLIMA-SP is a mechanism established by the Government of the State of São Paulo, through Decree No. 68,577/24, to enable private-sector contributions aimed at expanding and enhancing climate financing across the state. The initiative creates a permanent structure to mobilize both private and public resources for mitigation, adaptation, and climate-resilience projects, strengthening the state’s environmental agenda and supporting the achievement of restoration and emissions-reduction targets.

Under the coordination of the Secretariat for Environment, Infrastructure, and Logistics (SEMIL), FINACLIMA-SP channels investments into strategic areas such as landscape restoration, bioeconomy development, sustainable agriculture, and watershed protection. These efforts align with the state’s target of restoring 1.5 million hectares by 2050, with a strong emphasis on nature-based solutions and safeguarding essential ecosystem services.

The initial implementation of the mechanism focuses on priority regions such as the Cantareira Environmental Protection Area (APA Cantareira) and the Administrative Region of Presidente Prudente, areas that face challenges related to water security, native vegetation fragmentation, and high potential for ecological connectivity. Technical partnerships, including collaboration with ITESP (São Paulo Institute for Land Affairs) to support activities in rural settlements, enhance implementation capacity and extend the reach of actions across the territory.

FINACLIMA-SP operates with strong governance, legal certainty, and clear criteria for management and accountability. Resource traceability is guaranteed through monitoring systems, independent audits, and proactive transparency, supported by FUNBIO in its role as managing entity, creating a favorable environment for funders and investors. The mechanism also aims to boost emerging markets, such as carbon credits and other environmental assets, by structuring projects at scale and lowering transaction costs.

By promoting high-quality, long-term investments, FINACLIMA-SP strengthens the state’s climate resilience, stimulates sustainable value chains, and expands the social, economic, and environmental benefits delivered to residents across São Paulo.