Brazil leads international ranking of industrial decarbonization project finance

Brazil’s proposal for the Industry Decarbonization Program (IDP), led by the Climate Investment Funds (CIF), ranked first among 26 eligible countries, according to an independent panel of experts. The selection places Brazil at the global forefront of access to CIF funding, aimed at accelerating the decarbonization of emissions-intensive industrial sectors, such as steel, cement, aluminum, and chemicals. The full independent assessment report was published this Thursday (May 22) on the institution’s official website. On June 11 and 12, the CIF committee will carry out the final evaluation of the candidate countries.

In justifying Brazil’s score on its expression of interest, the international initiative highlighted the National Energy Transition Policy (Política Nacional de Transição Energética/PNTE), designed by the Ministry of Mines and Energy (Ministério de Minas e Energia/MME), as a defining element behind the strength and credibility of Brazil’s proposal. The PNTE was considered fundamental in structuring the national industrial decarbonization strategy, aligned with long-term climate goals and public policies.

“This recognition shows that we are on the right path. Brazil is a global reference in clean energy and biofuels generation, and it has also taken a leading role in the energy transition through strategic public policies that seize all opportunities in this new economy. We have made significant progress in regulatory frameworks that will provide even greater legal certainty for investors, allowing us to advance further in industrial decarbonization,” highlighted the Minister of Mines and Energy, Alexandre Silveira, commenting on the report.

This recognition shows that we are on the right path. Brazil is a global reference in clean energy and biofuels generation, and it has also taken a leading role in the energy transition through strategic public policies that seize all opportunities in this new economy.”
Alexandre Silveira, Brazil’s Minister of Mines and Energy

ROBUST PROPOSAL – The document emphasized that Brazil’s proposal is “technically robust, ambitious, and ready for implementation,” presenting a “compelling strategic framework supported by national policy instruments, institutional coordination, and initial private sector engagement.” The report also recognized that the Brazilian proposal includes one of the most developed just transition frameworks among all submissions, with concrete elements for regional development, workforce reskilling, and gender equality promotion.

The outcome is the result of the strategic work led by MME, which in 2024 launched a public call for low-carbon hydrogen projects, anticipating the requirements of the Industry Decarbonization Program (IDP) and preparing the country to secure new international financing. The call was jointly conducted by the MME, the Ministry of Development, Industry, Trade and Services (Ministério do Desenvolvimento, Indústria, Comércio e Serviços/MDIC), and the Ministry of Finance (Ministério da Fazenda/MF), with support from the United Nations Industrial Development Organization (UNIDO) and the British government. The initiative is a central part of Brazil’s National Hydrogen Program (Programa Nacional do Hidrogênio/PNH2), which has the establishment of low-carbon hydrogen hubs across the country by 2035 as its main long-term objective.

Following the CIF committee’s final decision in June, the next step will be the development of the investment plan, in partnership with the Ministry of Finance (Ministério da Fazenda/MF) and the Ministry of Development, Industry, Trade and Services (MDIC). This work will receive support from multilateral institutions such as the World Bank, the Inter-American Development Bank (IDB), and UNIDO.