Loading...
Water bonds to mitigate environmental risks in Brazil: integrating a local-based approach in sustainable finance for water
Beltran, Macarena Torres, Isabel Dias, Rayla Santos, Ticiane Park, Jin Tjahjono, Benny
Beltran, Macarena
Torres, Isabel
Dias, Rayla
Santos, Ticiane
Park, Jin
Tjahjono, Benny
Editors
Other contributors
Affiliation
Epub Date
Issue Date
2026-01-30
Submitted date
Subjects
Files
Loading...
Published report
Adobe PDF, 12.14 MB
Alternative
Abstract
This report summarises the outcomes of an expert workshop and local participatory stakeholder engagement held in Belém, Brazil, in June 2025, focused on the integration of sustainable finance, water governance, and environmental risk assessment. The event brought together academics, public authorities, financial practitioners, and community representatives to examine how green, social, and water-related bonds can more effectively support sustainable water infrastructure investment. Expert discussions highlighted the growing demand for thematic bonds, alongside persistent challenges related to weak impact evaluation, limited post-issuance reporting, and insufficient integration of environmental risk into project design. Contributions from Brazil, the United Kingdom, and Chile emphasised the importance of transparency, credible disclosure, and natural capital accounting in aligning financial governance with sustainability objectives. Institutional tensions between water regulation, environmental licensing, and community participation were identified as key barriers to effective implementation.
Participatory discussions with 54 local stakeholders revealed significant environmental risks linked to inadequate waste management, unregulated groundwater extraction, weak monitoring capacity, and policy discontinuity, despite the abundant water resources in the Amazon. Participants also highlighted community-based practices such as rainwater harvesting, flood adaptation, and participatory monitoring as practical, locally grounded strategies for resilience and sustainable water use. Across both expert and community sessions, a shared concern emerged regarding the limitations of current sustainable finance approaches, which often prioritise regulatory compliance and market credibility over long-term ecosystem resilience. The workshop reinforced the need to integrate environmental and social risk assessment early in the investment lifecycle and to better align market-oriented financial instruments with impact-oriented governance approaches.
The Belém workshop represents a key milestone in developing a context-sensitive framework for environmental risk assessment in green finance. The insights generated aim to inform a subsequent phase of research focused on refining the framework through additional empirical validation, stakeholder engagement, and policy dialogue, to support water-related investments that are financially viable, socially equitable, and ecologically sustainable.
Citation
Beltran, M., Torres, I., Dias, R., Santos, T., Park, J., Tjahjono, B., & Hanoch, Y. (2026). Water Bonds to Mitigate Environmental Risks in Brazil: Integrating a local-based approach in sustainable finance for water. Newcastle: Northumbria University, UK. (pp. 1–44).
Publisher
Journal
Research Unit
DOI
PubMed ID
PubMed Central ID
Embedded videos
Additional Links
Type
Research report
Language
en
Description
Report published by Northumbria University.
Series/Report no.
ISSN
EISSN
ISBN
ISMN
Gov't Doc #
Sponsors
Project: UK–Brazil Global Talent Exchange Scheme (Pilot). ESRC-funded project (APP49818) “Collaborative Engagement: Water bonds to Mitigate Environmental Risks”.