Curitiba, a Generation Restoration pilot city, laid the foundation for Brazil’s first municipal environmental asset market, while demonstrating how expanding urban/peri-urban agriculture can restore ecosystems while strengthening food security and climate resilience.
About the city
Curitiba has a population of approximately 1.7 million people, and its metro area has a population of over 3.2 million. It is located in the state of Paraná in southern Brazil, and is situated inland approximately 100 miles from the Atlantic coast. Curitiba has a humid, subtropical climate, with mild winters and warm summers, generally receiving rainfall all year. Curitiba is known for its strong economy, which is dominated by industry and services, and is recognized as an ecological capital for its urban and environmental innovations.
Local challenges
Despite Curitiba’s significant rainfall year-round, extreme precipitation poses threats to the city, with consequences including soil impermeability, flooding, and landslides. At the same time, rising temperatures pose challenges, particularly due to the urban heat island effect. These challenges are exacerbated by Curitiba’s rapid expansion in recent decades. In the last 40 years, Curitiba’s urban expansion has resulted in the loss of over 8,000 hectares of agricultural land and 600 hectares of forests on the city’s periphery, leading to fragmented green areas and a loss of agricultural production and resilience. Furthermore, Curitiba struggles with issues of pollution from low recycling rates and open dumping, as well as substandard water quality in several waterbodies.
Action through Generation Restoration
The pilot project in Curitiba aimed to establish the foundations for innovative financing mechanisms and planning tools that connect local restoration initiatives to new sources of environmental revenue. The project involved two complementary components: 1) inputs for the creation of a municipal carbon market, encouraging projects that protect biodiversity, support the provision of ecosystem services, and support community development, and 2) strengthening agroecological urban and peri-urban agriculture as a productive form of ecosystem restoration.
Carbon market
The carbon market analysis began with a comprehensive inventory of Curitiba’s natural capital, including ecosystems, species, and green spaces. Natural capital was linked to six strategic areas related to ecosystem services: food security, conservation and restoration of biodiversity and habitats, water quantity and quality, soil protection and use, greenhouse gas emissions vs. removals, and renewable energy use and energy efficiency. From this, an initial economic valuation of Curitiba’s natural capital was conducted, considering select assets such as urban gardening, carbon sequestration from street trees and native vegetation, and biodiversity credits, highlighting the economic value of the city’s natural assets.
The project also created a proposal for an updated and improved Biodiversity Index for Curitiba, reflecting the current state of biodiversity in the city and serving as a management tool to support conservation efforts. The methodology focused on three categories: urban biodiversity, ecosystem services, and governance and management. Overall, the results were positive for Curitiba. The report determined that habitat restoration, control of invasive species, water regulation, climate regulation via vegetation, budget allocated to biodiversity, and the number of biodiversity projects implemented annually need improvement, providing a basis to focus attention on restoration projects that would most support biodiversity within the city.
Another analysis included an in-depth assessment of the ecosystem services provided by local biodiversity conservation and nature protection policies, especially those focused on climate adaptation and resilience. The assessment emphasized initiatives such as conservation units, tree planting, and urban agriculture, and resulted in a series of recommendations to improve the city’s provision of ecosystem services, including environmental, social, and governance interventions. The assessment was intended to inform the design and improvement of future policies and projects that will enhance the city’s sustainability and livability.
The project engaged in a strategic analysis of environmental markets and methodologies relevant to the municipality’s programs and projects. The analysis focused on carbon market credits, renewable energy credits, plastic credits, and biodiversity credits, with a focus on urban environments. Key findings showed that Curitiba already implements various policies and programs that are eligible for environmental markets, and that its projects in electromobility, solar energy, plastic recycling, urban agriculture, reforestation, and native forest conservation are the most promising for generating credits. This provided the Curitiba municipality with strategic insights for market participation and potential revenue generation.
From this, the project conducted a comprehensive study on the technical and financial feasibility of environmental assets projects in Curitiba, such as carbon credits, that could be conducted by the Curitiba city government. The study evaluated 10 initiatives, considering factors such as project outputs, credit volume, revenue, investments, net present value, internal rate of return, and payback period. The study proposed creating a municipal environmental asset market to incentivize good practices in greenhouse gas reduction, plastic pollution mitigation, renewable energy generation, and biodiversity conservation. From this analysis, the project identified priority environmental projects, based on their eligibility and feasibility for generating carbon credits, biodiversity credits, and other environmental assets. These include e-mobility, composting, biochar application in urban agriculture, biodiversity credits from native green areas, and plastic credits from recycling. These projects were deemed especially strategic due to their short-term and high-impact nature.
Following this, the project created detailed roadmaps for environmental asset projects in Curitiba, to move projects from concepts to active initiatives on the ground. The roadmaps outlined steps for implementation, including registration, validation, monitoring, verification/certification, and issuance of credits, focusing on carbon credits from e-mobility, composting, and biochar application in urban agriculture.
Finally, the project involved training provided to the staff of the Curitiba city government, which aimed to present the scope and outcomes of the pilot project to government officials, discuss implementation of environmental assets projects, and gather feedback.
Urban and peri-urban agriculture
The agricultural component of the project explored the potential for agriculture as a nature-based solution that simultaneously restores degraded land while providing food and other ecosystem services.
The project produced a mapping of degraded areas throughout Curitiba, and where productive restoration could occur. To achieve this, the project analyzed land use changes in the city to map the fronts of urban expansion, and then linked these areas to other climate risks (i.e. heat and flooding). From this, areas with the highest degree of degradation were identified, and four restoration modalities were proposed: urban and peri-urban agroecological restoration, restoration within the built environment, restoration of protected areas, and restoration of forest and grassland remnants. This enabled the development of technical and spatial criteria to guide the planning and prioritization of restoration actions.
Another component involved the design of sustainability criteria for Curitiba’s public food procurement that would promote sustainable and local food production. This involved a rating system for producers based on factors such as waste management, water efficiency, soil conservation, biodiversity, and gender equity, as well as a system for certification and verification for small producers.
The project also involved a quantification of ecosystem service benefits from the expansion of 2,000 hectares of urban/peri-urban agriculture in Curitiba, using scenario modeling. The findings indicated that carbon storage of 64,000 tons (236,000 CO2e) would equate to a value of approximately 3.5 million dollars. Additionally, local cooling effects of urban hotspots would increase by up to 1ºC in urban hotspots and strengthen resilience against floods. Financing for urban agriculture upscaling could be complemented by marketing carbon credits and ecosystem services.
Finally, the project enabled policy recommendations to promote urban agriculture, agroecological transition, and ecosystem service provision, integrating innovative financing mechanisms to advance urban restoration, food security, climate resilience, and equity. Key recommendations include a commitment to no net loss of green or natural areas and offsetting new built or paved areas with restoration of re-naturalization equivalents; including urban agriculture in the city master plan, zoning, and land use policies; and strengthening and aligning Curitiba’s municipal program for urban and peri-urban agriculture by aligning it with regional food and resilience policies.
Main outcomes
The pilot project in Curitiba established important analytical and planning infrastructure to create an innovative market for environmental assets while strengthening urban and peri-urban agriculture, contributing to the city’s climate resilience and food security.
Through a series of assessments and analyses focused on natural capital, biodiversity, ecosystem services, and markets, the project enabled the identification of strategic opportunities for investment into nature-based solutions. A particularly novel approach was the project’s emphasis on small- and medium-sized local projects, creating a mechanism by which local buyers of carbon credits can invest in these smaller scale enterprises inside the municipality, strengthening the circular economy while supporting those engaged in local environment and sustainability initiatives.
The project also advanced significant understanding of the potential of urban and peri-urban agriculture as an ecosystem restoration method while fostering urban food security in Curitiba. By modeling the conversion of 2,000 hectares of land in Curitiba for urban and peri-urban agriculture, there were various noteworthy findings: storage of 64,000 tons of carbon resulted in a carbon sequestration potential of 236,000 tons of CO2e, valued at 3.5 million USD; cooling capacity of 1°C; increase in water infiltration 233,130 m³ during heavy rainfall events, equivalent to gray engineering solutions and reducing flood risk; increased access to green space for 166,000 people; and potential to compost up to 20,000 tons of organic waste per year and avoid the emission of up to 7,000 tons of CO2e per year.
This body of evidence and technical base, combined with close collaboration with the municipality’s technical teams and political leadership, accelerated policy uptake and is reflected in recent advances in public policies. The most significant uptake occurred in the Climate Law (16645/25), which proposes the creation of a municipal carbon market focused on community-based restoration initiatives, including urban agriculture based on the progress of the pilot project.
The Municipality of Curitiba has consolidated its trajectory in addressing the climate crisis in conjunction with the support of relevant institutional stakeholders, such as C40, ICLEI, financing agents, and multiple actors from the municipal public administration and organized civil society. This was done through internal and external governance structures, under the coordination of the Municipal Secretariat for the Environment of Curitiba and the Urban Planning Institute of Curitiba.
The project also resulted in various legal advancements for urban agriculture. This is reflected in the urban agriculture revised law (n.16646/25), which formally recognizes urban agriculture as a regenerative and conservation-oriented activity of social interest and economic relevance. These advances are also evident in the Solidarity Food Programme (decree n.2593), which incorporated urban farmers as both suppliers and beneficiaries, enabling public procurements to act as a driver for strengthening local food production, avoiding emissions, and generating income. Furthermore, the process of developing and incorporating the results of the ecosystem services assessment contributed to strengthening governance and engagement with different relevant actors, as well as unlocking funding for the city’s parallel “Food Connection” Program through strategic partnerships, notably with electric power companies. Taken together, these policies constitute a coherent policy mix, with converging actions on restoration, climate mitigation and adaptation, food security, and the transformation of urban food systems.
Overall, both project components provided a strong, interconnected framework for financing nature-based solutions, for a more climate-resilient, biodiverse, food-secure city.