The Bioeconomy is a sustainable economic approach that aims to take advantage of biological and renewable resources to generate products and services that meet human needs without compromising their availability for future generations. It is an economy based on the use of biological and renewable resources such as agriculture, forestry, fishing, aquaculture, biotechnology and food and energy production, with the aim of promoting sustainable economic, social and environmental development. The bioeconomy focuses on creating innovative and sustainable solutions related to food security, energy, health, climate change and the conservation of natural resources.

A Biobusiness responsibly integrates biodiversity into its processes, incorporates strategies and tools for climate change mitigation and adaptation, strengthens the inclusion of local communities, indigenous peoples and traditional knowledge, and internalizes the costs of sustainable use and conservation of resources.

Due to the diversity of biological, terrestrial, and water resources in the Amazon, the bioeconomy provides the ideal framework for the development of sustainable and productive models and practices in agriculture, forestry, and other land uses (AFOLU) in the Amazon. Switching to production models, technologies and practices that adopt a more sustainable use of the natural capital and forests of the Amazon (biobusinesses) can contribute to reducing the impacts of climate change by reducing deforestation, restoring the soil and reducing GHG emissions. .In parallel, being aware of the risks and vulnerabilities in incorporating more sustainable practices into AFOLU can help increase the region's resilience to future climate-related shocks that are already unavoidable to this day.

The green investment sector has been growing rapidly since 2015, with increased capital and investments in the bioeconomy. However, bioenterprises are not yet ready to absorb the available investment due to various constraints, such as capacity problems, technology deficits and inadequate access to markets. There is an opportunity to transform the Amazon economy towards inclusive and sustainable growth by supporting business models that use natural capital and forest assets sustainably.

The Amazonian private sector has a unique opportunity to benefit from the financial support available to continue carrying out an adequate management of renewable natural biological resources with innovative technologies and processes that follow the bioeconomy approach. Potential investments could focus on:

• Advisory and extension services in good business practices, growth strategy, marketing and logistics,
• Measurement and monitoring systems for socio-environmental impacts.
• Alignment with international standards and norms (including the adoption of certifications).
• Technological updating in priority value chains.
• Access to local and international markets.
• Development of commercial agreements with anchor companies.
• Bioprospecting.
• Identification of regulatory challenges, among others.

This challenge is aligned with the IDB Group's commitment to support greener economies in the Latin American and Caribbean region to respond to the challenges of the climate crisis, the loss of biodiversity, and related environmental problems.