This pillar directs public resources towards sustainable activities, as well as attracts private investments, both domestic and international, into sectors connected to ecological transformation.
It achieves this through the adoption of incentives and disincentives, applied based on the environmental impact and the social and technological development potential of economic activities. It employs fiscal, credit, financial, regulatory, administrative, and monitoring instruments.
Key Actions
- Several policies have already been implemented or are underway to achieve this goal, including: Sustainable Sovereign Bonds, increased funding for the Climate Fund, the Brazilian Emissions Trading System, the Brazilian Sustainable Taxonomy, the Tropical Forest Finance Facility (TFFF), Eco Invest Brasil, Development Credit Letters (LCDs), Incentivized and Infrastructure Debentures, and Tax Reform with sustainability incentives. Additionally, the roles of the National Bank for Economic and Social Development (BNDES) and the Funding Authority for Studies and Projects (Finep) are being recalibrated, with credit lines focused on innovation and ecological transformation.
- These resources are being used to finance energy transition, technological innovation and densification, reforestation, low-carbon agriculture, biotechnology, circular supply chains, research, development & innovation (R&D&I) of green technologies, climate adaptation, and low-carbon infrastructure, among other initiatives.
- Together, these programs will channel billions of reais over the coming years, mobilizing new public and private investments, opening new markets, and directing private resources towards a low-carbon economy and qualified jobs. Collectively, these policies are expanding sources of sustainable funding, ushering in a new era of innovative and technological development, with income distribution and social justice.
Axis 1: Sustainable Finance
- Brazilian Emissions Trading System (SBCE)
- Sustainable Sovereign Bonds
- Brazilian Sustainable Taxonomy
- Climate Fund with financing for green projects
- Tax Reform with social and sustainability advancements
- Capital Markets: disclosure of financial information related to sustainability
- Measures to expand financing for states and municipalities in environmental and climate projects
- Eco Invest Brasil for mobilizing external capital and currency hedging
- Development Credit Letters (LCDs)
- Tropical Forest Finance Facility (TFFF)
- Brazil Investment Platform for Climate and Ecological Transformation (BIP)
- Regulation of Infrastructure and Incentivized Debentures