Brazil Green Finance Programme

Welcome to the Brazil Green Finance Programme website. The main objective of the Brazil GFP is to boost investment in sustainable infrastructure to support Brazil’s economic development. This will be achieved by contributing to Brazil’s low carbon infrastructure transition and supporting the achievement of its Nationally Determined Contributions (NDC’s), post-2020 climate actions under the Paris Agreement.

To support a future global population of 9 billion people…

$5 trillion per year until 2040 will be needed to invest in global infrastructure (estimated).
The current pathway f infrastructure investments is locking us into a carbon intensive future.

To continue with the business-as-usual approach of investors and financiers to infrastructure projects would maintain the investment in conventional carbon intensive technologies.

Brazil is the 7th largest emitter of greenhouse gases (GHG).

Global efforts to address climate change depend upon Brazil’s ability to fulfill its ambitious COP21 targets of cutting 37% of GHG emissions by 2025.

Worldwide

According to IPCC (Intergovernmental Panel on Climate Change), average temperatures are forecast to rise by 4 degrees Celsius by 2100. This could result in unprecedent heat waves, severe droughts and major floods.

Global Infrastructure Gap (2016-2040)

$79 trillion

Current investment trajectory

$94 trillion

Investment needs

$15 trillion

Investment gap

source: Global Infrastructure Hub

Brazil ranks poorly in the quality of its infrastructure when compared against other developing countries on investments in infrastructure on average annually since 2000. As a result, the Global Infrastructure Hub projects USD 1,15 trillion must be invested between 2015 - 2040 if the country is to match its best performing peers.

The mentioned investment includes conventional infrastructure, in other words, carbon intensive investments. The Brazil’s Green Infrastructure Market Assessment developed by the Brazil Green Finance Programme team projected an investment need in Brazil’s green infrastructure of BRL 3.6 trillion – BRL 3.8 trillion (~GBP 570-600 billion) between 2020 and 2040.

Developing Countries Infrastructure spending as a % of GDP

3,7%

recommended by World Bank

At the 3rd UK-Brazil Economic and Financial Dialogue (EFD) held in London on 8 August 2018, the UK’s Chancellor of the Exchequer and the Finance Minister of Brazil recognised the importance of efforts to grow the global green finance market and the key role that multilateral cooperation plays in driving this agenda.

Brazil Green Finance Programme

The Green Finance Prosperity Fund Programme reinforces the opportunity to further widen bilateral cooperation between the UK and Brazil on green finance. Both sides recognise the opportunity to strengthen Brazil’s green finance market and facilitate capital flows that meet Brazil’s long-term sustainable infrastructure needs.

…while considering the UN Sustainable Development Goals
The Programme is structured in four interventions:
d
Intervention 1:

Dissemination of the Environmental Social and Governance (ESG) methodology through selected development banks to facilitate and improve their investment processes.

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Intervention 2:

Capacity building of the green finance market by improving the policies and capital market mechanisms to be implemented in two sustainable infrastructure pilot projects.

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Intervention 3:

Creation of an online platform to promote sustainable infrastructure opportunities in Brazil aiming to leverage national and international private capital.

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Cross-cutting Intervention:

Promote gender equality and women’s empowerment, highlighting its importance for the development of our society, both in terms of social inclusion and economic development.