• This is a new injection of the Climate Fund, provided by the MP 851/2018, on equity funds, which incorporated income to the equity
• The subject was on the agenda of the Climate Conference COP 24, in Poland, which took place until Friday, 14, and had the participation of BNDES technicians in the debates
The Brazilian Development Bank (BNDES) will inject R$ 163 million for new financing within the scope of the Climate Fund program. These funds are included in the R$ 228 million announced in late September and were enabled after the edition of Provisional Measure 851/2018, which incorporated the income of the equity Fund.
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 are related to the reduction of greenhouse gas emissions and to the adaptation to climate change and its effects.
The program 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.
History – The Climate Fund, established by Law 12,114/2009, 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 incentive to their diffusion.
BNDES is the accredited financial institutional 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 in projects, more than R$ 500 million have already been approved by BNDES, which leveraged more than R$ 1 billion in financing to reduce greenhouse gas emissions. These investments are estimated to reduce greenhouse gases emissions by about 4 million tons of CO2 equivalent.
COP 24 – Climate Change is the focus of the 24th Conference of the Parties to the United Nations, the COP 24, which occurs in Katowice, Poland, up to next Friday, 14, with the participation of BNDES technicians.
On Tuesday, 11, the team of the Environmental Department of the Bank participated in two events representing the Amazon Fund at COP24. In the morning, the theme was the payment by results of REDD+ (reduction of greenhouse gas emissions from deforestation and forest degradation). In the afternoon, BNDES participated in a presentation on the financing of forest recovery projects in large scale in Brazil.
On Monday, 10, the team participated in an event promoted by the Organization for Economic Cooperation and Development (OECD) and by the Inter-American Development Bank (IDB), where a case study of OECD about BNDES and the Development Bank of Southern Africa (DBSA) was presented. The document points out that development banks are fundamental for sustainable infrastructure investments in developing countries and is available from the following link: http://www.oecd.org/environment/environment-development/Financing-Climate-Futures-NDB-Brazil-South-Africa.pdf