BNDES partners with Green Climate Fund to mobilize R$ 39 billion for Brazil's Climate projects

Aloizio Mercadante, president of the Brazilian Development Bank (BNDES), announced plans to mobilize R$ 39 billion for energy transition and climate projects in Brazil during COP31 in Turkey.

The initiative involves a partnership between BNDES, the Green Climate Fund (GCF), and private investors to fund decarbonization and ecological transition efforts. The GCF, the world's largest multilateral climate fund, approved funding for two specific funds selected through a climate call launched by BNDES last year.

This collaboration combines national public resources, international concessional capital, and private investments to create more attractive conditions for large-scale sustainable projects. Mafalda Duarte, the executive director of the GCF, stated that the participation of the fund will help attract private capital for clean energy and industrial decarbonization. The investment structure includes contributions from private managers Brookfield, via the Catalytic Transition Fund Brazil, and Flying Rivers Capital.

Additionally, BNDES allocated over R$ 870 million to a fund managed by Generation Investment Management, a firm founded by Al Gore. These instruments aim to mobilize an additional R$ 26 billion through debt issuance, reaching the total potential of R$ 39 billion. During the summit, João Paulo Capobianco, the Brazilian Minister of Environment and Climate Change, defended the country's continued investment in oil.

He argued that oil remains a strategic international resource and that Brazil's decarbonization agenda includes a specific route focused on biofuels and electrification. Capobianco maintained that the country is advancing its energy transition while still utilizing its own resources to meet global demand.