Brazil relaunched USD2.05 billion Climate Fund

The National Bank for Economic and Social Development (BNDES) and the Ministry of the Environment and Climate Change (MMA) relaunched the National Fund on Climate Change with increased resources by raising BRL10 billion (US$2.05 billion) and focusing on six new areas.

The Climate Fund is set to receive reinforcement, thereby making valuable contributions to both the New PAC and the Federal Government's Ecological Transition Plan. In its new phase, the Climate Fund will pivot towards the formulation of projects designed to combat climate change, working in tandem with the New Growth Acceleration Program and the Federal Government's Ecological Transition Plan—both of which stand as prominent public policies.

Directly linked to the MMA, the Climate Fund's establishment dates back to 2009. It is overseen by the BNDES, which operates as the managing entity responsible for overseeing the allocation of recoverable resources. Among the freshly delineated areas of emphasis, six domains stand out: promoting resilient and sustainable urban development, fostering green industry, refining transport logistics and public transit alongside eco-friendly mobility, ushering in the era of energy transition, preserving native forests and safeguarding water resources, and finally, promoting green services and innovation.

The overarching objective of this multi-pronged initiative is to stimulate competitive advantages on a national scale. This pursuit involves nurturing domestic technology, cultivating top-tier green employment opportunities, and bolstering climate resilience, with a pointed emphasis on addressing the vulnerabilities of populations most susceptible to the impacts of climate change.