BNDES to provide R$ 163 million for projects that reduce GHG gas emissions
The Brazilian Development Bank (BNDES) will inject R$ 163 million (≈ US$43.8 million) for new financing within the scope of the Climate Fund programme. These funds are included in the R$ 228 million (≈US$61.3 million) announced in late September and were enabled after the edition of Provisional Measure 851/2018, which incorporated the income of the equity Fund.
According to a statement, the funds of the Climate Fund can be used to support the implementation of projects, the acquisition of machinery and equipment and the technological development that is related to the reduction of greenhouse gas (GHG) emissions and to the adaptation to climate change and its effects.
The programme is divided into ten sub-programmes: native forests; renewable energies; efficient machinery and equipment; urban mobility; sustainable cities and climate change; solid waste; charcoal; carbon management services; and innovative projects.
Established by Law 12,114/2009, the Climate Fund is one of the instruments of the National Policy on Climate Change, and its goal is to finance climate change mitigation projects, using technologies that still need incentives to their deployment.
BNDES is the accredited financial institution of the refundable part and member of the Management Committee of the Fund, composed of ministries, industry, academia and civil society.
The current portfolio has approximately R$ 600 million (≈ US$161.3 million) in projects, more than R$ 500 million (≈ US$134.4 million) have already been approved by BNDES, which leveraged more than R$ 1 billion (≈ US$269 million) in financing to reduce GHG gas emissions.
These investments are estimated to reduce GHG emissions by about 4 million tonnes of carbon dioxide (CO2) equivalent.