More results in perspective

The Ecological Transformation Plan has already begun!

Actions under the Ecological Transformation Plan (ETP) are already being implemented, resulting in tangible benefits for Brazilian society. In 2023, Brazil issued Sustainable Sovereign Bonds for the first time, the proceeds of which are already financing various projects related to ecological transformation. Additionally, the country is developing a National Sustainable Taxonomy in collaboration with experts and sectors of society, aiming to create a classification system for economic activities and projects focused on sustainable development.

In coordination with the government, the National Congress has advanced the proposal to create a regulated carbon market, positioning Brazil as a leader in global decarbonization efforts.

Another significant for the transition to a low-carbon economy was the creation of competitive credit options for decarbonization and the neo-industrialization of the country, resulting from an annual allocation of R$10 billion to the Climate Fund and the use of the TR rate (more competitive) as a reference for financing linked to technological innovation.

In 2023, a tariff policy was launched to support investments in domestic production of solar panels, wind turbines, and electric vehicles. These measures were combined with increased R&D investments for these sectors and the provision of competitive credit for low-carbon industrial projects.

Noteworthy in this context is the Green Mobility and Innovation Program (Named Mover, in Portuguese), a new industrial policy for the manufacturing of electric and hybrid vehicles in Brazil, with tariff, credit, and research and development (R&D) policies aimed at adapting the industrial base. Following the launch of the Program, companies in the sector have already announced new investments exceeding R$100 billion.

To encourage technological deepening and competitiveness of products made in Brazil, the ETP is also stimulating the domestic processing of strategic minerals, which are essential for the energy transition.

Other measures in this direction that promise to boost the productive sector include incentivized debentures to the infrastructure, which, with the redesign of the tax incentive, are an important solution as a source of financing for low-carbon and mineral transformation projects.

The Ecological Transformation Plan is also promoting, through a series of interministerial actions, the mechanization of family farming with initiatives aimed at producing machines that can be purchased at low-interest rates, to promote the productivity of family farming and strengthen the bioeconomy and food security.

Through the BNDES – a Brazilian bank focused on economic and social development -, R$1 billion has been made available for the Forest Restoration Promotion Program, which focuses on carbon capture and biodiversity recovery—a strong asset for Brazil on the international stage and a factor attracting foreign investment. Instead of the Arc of Deforestation, the country is beginning to structure the Arc of Forest Restoration. The Federal Government is also working internationally to develop the Global Forest Preservation Fund, which could provide payment for environmental services in preserved areas.

In addition to all these initiatives, the Ecological Transformation Plan includes financial regulations and currency protection to attract long-term foreign investments—an innovative initiative that should inspire other developing countries in seeking solutions to finance the transition to a low-carbon economy.

Highlighted investments include the Amazon Bio-business Center, generating income and promoting the sustainable use of natural resources; the promotion of the development and supply of future fuels, more sustainable and with low carbon intensity, a fundamental initiative for the energy transition; the shift from the current linear model to a circular economy, transforming production processes, business practices, and the general culture of society in reuse, remanufacturing, recycling, and waste and materials management to preserve ecosystems and generate income through the emergence of new markets.