Plan and resources approved for New Climate Fund

The new Brazilian Climate Fund (National Fund on Climate Change), the Federal Government's main green development instrument, is ready to receive proposals.

The fund's Management Committee approved the 2023 report and the resource application plan to finance sustainable development projects in the country.

In total, the new Climate Fund will have up to BRL10.4 billion (US$2.07 billion) to finance projects from the public sector, private companies and the third sector in six priority areas: Resilient and Sustainable Urban Development; Green Industry; Transport Logistics, Public Transport and Green Mobility; Energy Transition (solar and wind generation, and biomass, energy efficiency, among others); Native Forests and Water Resources; and Green Services and Innovation.

The Fund will use part of the resources raised by the Ministry of Finance, in 2023, from the issuance of US$2 billion in sustainable sovereign bonds on the international market. Rates for financing green projects through the Fund range from 1% per year (native forests and water resources) to 8% (solar and wind energy generation), as defined by the National Monetary Council (CMN), plus the spread from the project.