BNDES Clima - Sustainable Financing to Support Global Climate Change Mitigation and Adaptation in Brazil (NDB-bndesclimasustainable)

Countries
  • Brazil
Where the impacts of the investment may be experienced.
Specific Location
UNINFORMED
Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.
Financial Institutions
  • New Development Bank (NDB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Bank Risk Rating
U
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Jun 28, 2021
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
Goverment of Brazil
The holder of the loan, grant, or other investment.
Sectors
  • Climate and Environment
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 500.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Loan Amount (USD)
$ 500.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Project Cost (USD)
$ 500.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please see updated project documentation for more information.
Primary Source

Original disclosure @ NDB website

Updated in EWS Jul 23, 2021


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Project Description

PROJECT CONTEXT

Addressing climate change is of critical importance to Brazil's sustainable socio-economic development. Implementing climate change mitigation and adaptation measures is central to Brazil's commitments to the Paris Agreement, and Sustainable Development Goals (SDGs). In 2015, under the Paris Agreement, Brazil submitted its Nationally Determined Contribution (NDC), with commitments of contribution to reducing greenhouse gas (GHG) emissions by 37% from 2005 levels in 2025, and a subsequent indicative contribution to reducing greenhouse gas emissions by 43% from 2005 levels in 2030. To meet its NDCs and commitments to sustainable development under the SDGs, Brazil need a significant increase in resources and investments.

PROJECT OBJECTIVE

The Project is designed to increase investment in climate change mitigation and adaptation projects in Brazil, in line with the Brazil's commitments of GHG reductions under the 2015 Paris Agreement.

PROJECT DESCRIPTION

NDB will provide a sovereign guaranteed loan to BNDES for on-lending to public and private sector for climate change mitigation and adaptation projects in Brazil. The sectors to be financed under the Project will follow national guidelines and prioritization: Renewable Energy, Efficient machinery & equipment, Sustainable Urban Mobility, Solid Waste, Sustainable cities, Native Forests, Improvement of Charcoal Processing, Carbon, Management/Services, Innovation.

EXPECTED BENEFITS

The Project is intended to reduce 4,000,000 tons of CO2 emissions by 2030. The Project will also deliver various positive development results related to sustainable development in areas including urban mobility, waste treatment, renewable energy and energy efficiency. In doing so, the Project will support Brazilian NDC in reduction of GHG emissions as agreed in the 2015 Paris Agreement.

ENVIRONMENTAL AND SOCIAL ASPECT

The Project has been categorized as Category FI-B in line with NDB's Environmental and Social Framework. The Project's main environmental and social impacts may include resettlement, conversion of natural habitats, emissions during construction, occupational and community health and safety. The negative impacts will be mitigated by adherence to country system requirements, BNDES' E&S policies, and the implementation of an Environmental and Social Impact Management Plan.

IMPLEMENTATION

BNDES will be responsible for the overall Project monitoring and evaluation, including selection of sub-projects, collection of all information and supervision of sub-project performance. Sub-borrowers from the public and private sectors will be responsible for planning and implementing sub-projects and sharing implementation reports with BNDES. The Project will be implemented in four years.

Investment Description

Contact Information

NDB: Project Team Leader:

Raisa Leao
leao.raisa@ndb.int

Borrower and Implementation Agency:

Luciene Machado
Luma@bndes.gov.br