Brazil has announced a partnership with the Glasgow Financial Alliance for Net Zero (GFANZ), the world’s largest climate-focused financial coalition, to scale up funding for clean energy and nature restoration efforts, as reported by Reuters on February 26. Brazilian development bank BNDES will collaborate with GFANZ on mobilizing public and private financing to promote investments in Brazil’s renewable energy sector and environmental protection projects. For instance, part of the funds will be used to support the “Arc of Reforestation” initiative that aims to restore 60,000 square km of degraded or destroyed Amazon rainforest. While the specific value and timeline for these investments have yet to be determined, BNDES stated that the government will act with urgency.

Brazil is attracting global investments in its ambitious ecological transition plan, including building a robust clean energy system, ending deforestation, and halving its greenhouse gas emissions by 2030 from 2005 levels. To fund its environmental agenda, Brazil raised USD2bn from the issuance of its first sovereign sustainable bond in November 2023, with the proceeds to be allocated for greenhouse gas emissions reduction, deforestation mitigation, and hunger alleviation. In addition, the country secured USD400m in credit line from the World Bank last September to finance sustainable agriculture and the restoration of degraded areas in the Amazon region. This followed a USD400m sustainability-linked loan from the World Bank, provided earlier to Brazilian companies seeking to reduce their carbon emissions.

Sources :

https://www.reuters.com/sustainability/sustainable-finance-reporting/brazil-partners-with-largest-climate-finance-alliance-boost-green-growth-2024-02-26/

https://www.reuters.com/sustainability/sustainable-finance-reporting/brazil-prices-2-bln-first-ever-esg-bond-65-yield-source-2023-11-13/

https://www.gfanzero.com/press/attracting-global-finance-to-brazils-ecological-transformation-plan/

https://www.reuters.com/world/americas/banco-do-brasil-world-bank-ready-cooperation-400-mln-amazon-recovery-2023-09-19/