The World Bank Group backed a $1.06 billion financing package for Brazil’s industrial decarbonisation, announced on 15 September. The package comprises a $1 billion loan from the International Bank for Reconstruction and Development and $60 million from the Clean Technology Fund. The financing will be channelled through Brazil’s national development bank, BNDES. The World Bank expects the programme to mobilise a further $1.8 billion from development and commercial sources.
The programme targets energy-intensive activities including steel, cement, chemicals, aluminium, glass and low-carbon fuels. It will also support common-user infrastructure such as green hydrogen and ammonia storage and pipelines. The operation is designed to de-risk early-stage investments and attract private capital as green industrial markets mature.
FINANCING TARGETS INDUSTRIAL TRANSITION
BNDES, which has a financing portfolio of about R$585 billion, will channel the resources as implementation partner. The project focuses on three areas: low-carbon industrial commodities, low-carbon fuels such as sustainable aviation fuel, e-methanol and biomethane, and common-user infrastructure. Tariye Gbadegesin, chief executive of the Climate Investment Funds, said Brazil was showing how industrial decarbonisation can become a driver of competitiveness, growth and jobs.
“Brazil’s clean energy matrix is one of its greatest competitive advantages. This project is about turning that advantage into a driver of industrial transformation,” said Cécile Fruman, World Bank Director for Brazil. The expected $1.8 billion mobilisation is a forward-looking estimate rather than financing already committed.
BRAZIL’S INDUSTRIAL EMISSIONS GOAL
The programme supports Brazil’s goal of reducing the greenhouse gas intensity of industrial GDP by 30% by 2033.
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