GEF Capital is actively advancing private climate change solutions in Brazil through its Latin America platform, GEF Latam, with a strong focus on both mitigation and adaptation. Operating from São Paulo, the fund is led by Anibal Wadih, founder and Managing Director, who brings more than 25 years of experience in sustainable and climate-focused investing. A key driver of GEF Latam’s growth has been its partnership with Proparco, which has played a catalytic role in attracting capital from major institutions and a growing number of institutional investors.
GEF Latam’s investment strategy is firmly aligned with the Paris Agreement. The fund applies strict exclusion policies that rule out high-emission sectors, including major carbon emitters and fossil fuel-related activities. Each potential investment is assessed using proprietary tools designed to evaluate climate compatibility, with close engagement from Limited Partners to ensure rigorous scrutiny. After investment, GEF Latam works closely with portfolio companies to strengthen carbon reporting, continuously monitor environmental performance, and drive reductions in carbon footprints, all within clearly defined net-zero pathways.
To assess climate and ESG risks, the fund follows a comprehensive, multi-layered approach. An initial impact assessment screens opportunities against exclusion lists, the UN Sustainable Development Goals and EU Taxonomy eligibility, while also incorporating climate risk analysis aligned with the Task Force on Climate-related Financial Disclosures and the Impact Management Project framework. This early stage identifies alignment with climate objectives and highlights potential ESG risks. Investments that pass this stage undergo full ESG due diligence by independent third-party consultants, aligned with IFC Performance Standards and the SASB framework, resulting in detailed ESG analyses and Environmental and Social Action Plans. Post-investment, these action plans are implemented and monitored through dedicated governance processes to ensure long-term ESG and climate alignment.
As a result of this structured approach, GEF Latam maintains a fully climate-aligned portfolio. Every investment is screened and verified at entry and continuously assessed throughout the holding period, ensuring that climate integrity remains embedded in the fund’s strategy. Business growth and emissions reduction are addressed simultaneously by integrating climate governance from the earliest stages of investment evaluation. Climate commitments are clearly defined in term sheets and enforced through measurable action plans. Portfolio companies establish sustainability stewardship committees overseen by specialized officers, ensuring that climate performance goals are directly linked to financial outcomes.
Currently, around 75% of GEF Latam’s capital is allocated to climate mitigation, with a strong emphasis on renewable energy, energy efficiency solutions and circular economy initiatives. The remaining 25% is directed toward climate adaptation, particularly in resilient infrastructure such as advanced water and wastewater management systems. While mitigation remains the primary focus, the fund aims to significantly expand its adaptation investments in response to escalating climate risks.
Climate performance is tracked through a detailed set of indicators. Mitigation investments are measured by emissions avoided, emissions inventories, renewable energy generation, water usage and waste management efficiency. Adaptation investments focus on resilience outcomes, including beneficiaries protected from climate impacts, hectares restored and volumes of water conserved. These indicators feed into a regularly updated and externally verified dashboard, supporting transparency and accountability.
Looking ahead, GEF Latam sees strong potential in sustainable agriculture and land management, which are central to Brazil’s climate and development agenda. The rise of bio-inputs is of particular interest, as they reduce dependence on imported agrochemicals while improving soil health and lowering emissions. Clean energy also remains a priority. Although more than 82% of Brazil’s electricity already comes from renewables, the country’s reliance on hydropower creates vulnerability to climate stress, underscoring the need to scale up solar and wind energy. In addition, advanced wastewater and sludge management solutions represent a major opportunity, especially given that nearly half of Brazil’s population still lacks access to adequate wastewater systems.
GEF Latam’s experience has highlighted the importance of region-specific climate risk assessments and early integration of climate governance. The fund has learned that climate risks and opportunities are highly localized, and that relying solely on international benchmarks can overlook critical adaptation needs in Latin America. Embedding climate governance from the outset has also proven essential for gaining management buy-in and improving long-term investment outcomes.
Brazil’s geopolitical positioning further supports climate investment. Rising global demand for renewable energy, sustainable commodities and critical minerals, combined with Brazil’s role in international forums such as the G20 and the upcoming COP30, enhances the country’s attractiveness to climate finance. At the same time, macroeconomic uncertainty and domestic challenges require careful risk management.
Proparco’s investment has been instrumental in strengthening GEF Latam’s credibility and mobilizing additional climate finance. Its rigorous climate diligence, reporting requirements and technical expertise have helped refine the fund’s impact frameworks and align them with global standards. The partnership has also been key in attracting interest from institutions such as the Japan International Cooperation Agency and BNDES, positioning GEF Latam as a leading platform for innovative and impactful climate investing in Brazil and across Latin America.
