Welcome to the Brazil Green Finance Programme website

The main objective of the Brazil BGFP is to boost investment in sustainable infrastructure to support Brazil’s economic development towards a just transition. 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…

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

To continue with the business as usual approach means maintaining investments in conventional carbon intensive technologies.

Brazil is the 7th largest greenhouse gas (GHG) emitter

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 the Intergovernmental Panel on Climate Change (IPCC), average temperatures are forecast to rise by 4 degrees Celsius by 2100. This could result in unprecedented 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 to the annual average of investments in other developing countries since 2000. As a result, the Global Infrastructure Hub forecasts an investment of USD 1,15 trillion between 2015 - 2040 if the country is to match its best performing peers.

This forecast includes conventional infrastructure or 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 divided in two main workstreams, being:
d
Low Carbon Financial Instruments within Brazilian Banks

has the objective to develop the sustainable market in Brazil through the structuring and deployment of appropriate financial instruments and associated de-risking mechanisms to draw the appetite of the private sector, increasing investments in infrastructure projects linked to emissions reduction.

d
Strategic Roadmap and Climate Action Plan towards Net Zero – BNDES

with the objective to bring global best practices in greening portfolios and mitigating climate risks in BNDES, serving as a reference and incentive for other development banks to adhere to the agenda.