SAO PAULO (Reuters) -Brazilian lender BTG Pactual and the World Bank's private sector arm International Finance Corporation announced on Thursday up to $1 billion in joint investments on sustainability and development initiatives.

WHY IT'S IMPORTANT

Private sector engagement in sustainability has gained momentum globally, with private institutions promoting climate finance and development-focused investments.

Brazil is home to much of the Amazon rainforest and a critical region for biodiversity and climate solutions. BTG Pactual is Latin America's largest investment bank.

BY THE NUMBERS

The partnership is set to mobilize up to $1 billion by the end of 2028 through co-financing, equity investments and private equity funds.

KEY QUOTES

"The private sector can and must be a key player in advancing the climate agenda and driving transformative initiatives that improve lives and foster economic growth," said Alfonso Garcia Mora, IFC's regional vice-president for Europe, Latin America and the Caribbean.

BTG Pactual CEO Roberto Sallouti said "the allocation of these resources will be done carefully, adhering to technical and financial criteria."

ADDITIONAL CONTEXT

The investments are aimed at boosting initiatives to tackle climate change and promote sustainable economic growth in Brazil and Latin America, IFC and BTG said, targeting social and environmental development, conservation, infrastructure, and the so-called bioeconomy.