Government launches program of up to US$ 2 billion to leverage projects via the Climate Fund
The Federal Government, through the Ministry of Finance, has just announced an innovative initiative to unlock up to US$ 20 billion in financing for sustainable projects, in sectors such as biofuels, infrastructure, sanitation, railways and the recovery of degraded areas. The action is part of the Eco Invest Brasil program, which is part of the Ecological Transformation Plan led by the Ministry.
Main points of the program:
- Climate Fund: Between US$ 1 billion and US$ 2 billion of public resources will be used to leverage sustainable projects, in a public and private financing model (blended finance).
- Deadline for Proposals: Financial institutions have 60 days to present projects for new production units in the area of sustainability.
- Attractive Interest Rate: Public resources will have an annual interest rate of 1%, as regulated by the National Monetary Council (CMN).
- Private Participation: Each financial institution will be able to raise up to 25% of public resources, guaranteeing the participation of at least four institutions in the program.
- Minimum Requirements: Projects must request at least R$ 500 million in public resources to enable external funding.
- Selection Criteria: Projects with lower demand for public resources and greater impact will be prioritized, including return deadline and use of national content.
- Exclusions: Solar and wind energy and distribution projects are not included, as they already have financial maturity.
The Ministry of Finance will release the results approximately 30 days after the end of the two-month window for proposals. The release of Climate Fund resources will occur in three stages: initially 25%, followed by another 50%, and the remaining 25% later.
This measure, carefully developed in collaboration with the Brazilian Federation of Banks (Febraban), promises to significantly increase corporate sustainable emissions abroad, marking an important advance in Brazil's ecological transition.