By Brazil Stock Guide – Brazil’s development bank BNDES approved 200 million reais ($40 million) in financing for a eucalyptus planting and management program led by Veracel Celulose, aiming to expand sustainable pulp production in the state of Bahia.
According to a statement from the bank, the project will cover up to 22,700 hectares across 11 municipalities in southern and extreme southern Bahia, with activities including planting, regrowth and conservation through 2028.
The financing, structured under the BNDES Finem program, marks the third active operation between the bank and Veracel, reinforcing support for forestry initiatives tied to environmental sustainability and local economic development.
The program spans municipalities including Eunápolis, Santa Cruz Cabrália and Porto Seguro, among others, and is expected to generate jobs and income in areas with low Human Development Index indicators.
BNDES President Aloizio Mercadante said the funding aligns with Brazil’s industrial policy framework, known as Nova Indústria Brasil, which promotes sustainable forest management and value-added production. “The support from BNDES encourages sustainable pulp production and strengthens Brazilian companies engaged in export-oriented, green economy projects,” he said.
The investment is also expected to contribute to Brazil’s trade balance by increasing pulp export capacity, a key segment of the country’s commodities sector.
Veracel Celulose, a Brazilian bioeconomy company, produces about 1.1 million tons of eucalyptus-based pulp annually and manages more than 200,000 hectares in Bahia, including protected Atlantic Forest areas. The company is jointly owned by Suzano SA (SUZB3 BZ) and Stora Enso Oyj (STERV FH).