Sustainable Financing for Ecological Transformation
To make the Ecological Transformation a reality, New Brazil has innovated in raising funds in international markets, obtaining financing at lower interest rates. This access to cheaper credit was only possible because the country made a commitment to invest it in the transition to a low carbon economy and in reducing social inequalities.
Funds raised are allocated to the Climate Fund, managed by the Ministry of Environment and operationalized by the National Bank for Economic and Social Development (BNDES). This Fund finances sustainable projects and innovative businesses in various sectors, creating skilled jobs and boosting economic development.
Use of proceeds
Approximately R$20 billion has already been raised, with expected new fundraising of R$10 billion a year, which is allocated to projects that directly impact on people's lives and on sustainability. Proceeds are used to finance:
✅ Resilient and sustainable urban development
✅ Green industry and innovation towards a low carbon economy
✅ Clean mass transit and transportation infrastructure for green mobility
✅ Energy transition with renewable energy
✅ Protection and restoration of biomes including reforestation, sustainable management and water resources conservation
✅ Green services and innovations to foster sustainable entrepreneurship
Sustainable issuance
Sustainable bonds are one of the main instruments used to raise these funds. They work like public debt securities, but with a difference: they are backed by sustainable public policies set out in the Federal Budget.
Brazil follows strict criteria to define which projects can receive these funds, according to the Brazilian Sovereign Sustainable Bond Framework. In this way, the funds raised help finance initiatives linked to both environmental conservation and social development, guaranteeing a greener and fairer future for all.
With this strategy, Brazil attracts international investors, reduces financial costs and accelerates the transition to a sustainable economy, consolidating its position as one of the global leaders in green financing.
In the last two years, over R$20 billion has been raised abroad, with new fundraising expected every year.
Climate Fund’s contribution went from R$200 million a year to R$10 billion a year - 50 times more.