Brazil’s National Bank for Economic and Social Development (BNDES) has launched the ‘Chamada de Clima’ (Climate Call) initiative, which will see it allocate up to R$5 billion to support investment funds directed at projects linked to the green economy.
The initiative is expected to leverage an additional R$13 billion in private capital, which will bring the total investment volume to R$18 billion.
Projects targeted by the initiative include those involving the ‘decarbonisation of industrial processes, energy transition, infrastructure for climate adaptation, technology for green agriculture, ecological restoration, reforestation and forest conservation,’ BNDES said.
Chamada de Clima
The Chamada de Clima forms part of BNDES Participações SA (BNDESPAR), its subsidiary responsible for variable income investments, which supports two types of funds – equity funds and credit funds.
Up to five equity funds are set to be selected, with total BNDES participation of up to R$4 billion. Three of these will focus on ecological transformation, covering areas such as energy transition, decarbonisation, and technology for sustainable agriculture, while up to two will support nature-based solutions. For credit funds, up to two funds will be selected in both modalities, with a total bank contribution of up to R$1 billion.
Climate mitigation
“This is the largest public call for funds in BNDES’ history and has the potential to transform the institution’s fund portfolio,” commented BNDES president Aloizio Mercadante.
“With a focus on climate mitigation, it reinforces the bank’s and President Lula’s administration’s historic commitment to environmental sustainability. With this initiative, the bank positions itself as an anchor investor, encouraging private investors to participate in strategic sectors for sustainable development, the climate agenda, and improving the quality of life of Brazilians, in addition to contributing to the development of the country’s capital markets.”
Currently, the bank’s committed capital in equity and credit funds is about R$8.4 billion, which, combined with other investors, amounts to approximately R$36 billion. Read more here. [Photo by André Telles/BNDES]
