The Eco Invest Brazil, part of the New Brazil, was created to unlock sustainable private investment and attract foreign capital for long-term investments. With innovative financial mechanisms, the program enables strategic projects in green infrastructure, restoration of biomes, adaptation to the effects of climate change and innovation for Ecological Transformation.
Protection and predictability for investors against exchange rate fluctuations
Historically, exchange rate volatility and the lack of structured projects have been one of the main challenges for Brazil to attract foreign investment in long-term projects. To minimize this barrier, Eco Invest Brazil offers credit lines to mitigate exchange rate risks and enable projects to mature, ensuring predictability and attractiveness for long-term investment in the country. In addition, the program provides credit lines with public funds at attractive conditions to encourage national and international private investment, stimulating sectors such as:
✅ Energy transition – Increase in the production of biofuels and renewable energies (except solar and wind energy).
✅ Bioeconomy – Restoration of degraded pastures, sustainable agricultural production, and production, development and innovation for the bioeconomy (PD&I).
✅ Circular economy – Infrastructure for water and sewage services and elimination of open-air landfills.
✅Green infrastructure and adaptation - Revitalization of urban rivers and preservation of springs.
The 4 credit lines
The program is being implemented in stages, with some lines already launched and others in the final stages of development. Learn them:
✅ 1. Blended Finance: More investment at a lower cost
This line was created to provide sustainable projects with lower financing cost. The government provides part of the financing, reducing the costs for those who raise funds in the financial market, whether in Brazil or abroad. In the first auction held, R$6.8 billion from the government has the potential to raise R$44.3 billion in total investments combined with funds raised externally.
🔹 Benefit: Reducing the financing cost and attracting investment in ecological transformation
✅ 2. Protection against Exchange Rate Volatility: Less Risk for Investors
Liquidity Facility and Mitigation of Exchange Rate Volatility Effects. Exchange rate fluctuation has always been a challenge for foreign investment in Brazil. This line acts as a financial buffer for large foreign investors, protecting their investments from sudden exchange rate fluctuations against the dollar or other currencies.
If there is a sharp devaluation of the real, this mechanism comes into play to ensure that projects do not become unfeasible due to fluctuations in our currency. This provides safer long-term investment in infrastructure, clean energy and innovation.
🔹 Benefit: Less risk for those investing in Brazil, reducing the exposure to currency crises. Access for the country to major international investment funds.
✅ 3. Promoting Foreign Exchange Derivatives
This is a credit line to promote foreign exchange derivatives. Many Brazilian companies need to protect themselves from exchange rate fluctuations, but they may not always find good options in the market. This credit line encourages financial institutions to offer more affordable currency hedging, such as insurance and currency swaps.
More companies will be able to protect themselves against exchange rate fluctuations, facilitating financial planning and making Brazil a more reliable destination for international investments.
🔹 Benefit: Easier access to tools that protect companies against currency fluctuations.
✅ 4. Project Structuring: Sustainable Export
Many sustainable projects do not get off the ground because they lack planning, technical studies and financial modeling. This line was created precisely to support local companies and governments in project structuring.
With this line, it will be possible to develop projects in areas such as bioeconomy, circular economy, energy transition and green infrastructure aimed at companies that intend to export some or all of their products.
🔹 Benefit: Financial and technical support to develop sustainable projects and help them get off the ground.
The first auction held leveraged around R$45 billion, of which around R$7 billion in public funds and R$38 billion from the private sector. For every R$1 from the public sector, the private sector contributed R$6.