December 2016

1. Green Finance
Programme in Brazil
UNCLASSIFIED

2. Why?
> Government recognizes that public funds won’t be enough to implement
Brazil’s NDCs (Paris commitments) and the infrastructure needed for
Brazil’s economy development.
> Brazil will need to channel private finance into on low carbon infrastructure,
energy, agriculture and forestry projects.
> Green finance market is developing fast. BNDES launched last week in
London a Green Fund to lead private sector investment. The fund will be
implemented by mid 2017.
> This programme aims at supporting the development of a new market,
facilitating increased investment in sustainable development opportunities
while enabling Brazil to meet its commitments to reduce carbon emissions.
> In addition, pricing is now on the table! Green Bonds are less risky and this
is being reflected on price which has increased from a 5 to 15 basis point
(0.05% to 0.15% increase on yield)
> (BNDES provided 80% of finance for infra in the past; however, Brazil is
seeking a new and sustainable model to finance infrastructure projects, with
a balance between equity, bonds, private and public banks)

3. Interventions
1 – Consolidating a Green Bonds Market in Brazil
2 – Development of a Green Investment Bank
3 –Financial Education Hub
4 – Capacity Building for Green Projects

4. Consolidating a Green Bonds Market
> Consolidating the green bonds market in Brazil, across all sectors
and expanding Brazil’s experience to South America.
> Work with the government to ensure regulation and policy to
establish the market is addressed.

5. Development of a Green Investment
Bank
> Develop a Green Investment Bank model in Brazil, thus, using public
funds to leverage private investments in environmentally sustainable
infrastructure.
> This model would mirror the UK Green Investment Bank, providing a
selection of different instruments that could be directed to green
projects and leveraging private capital. “The Green Investment Bank
has leveraged 4 pounds from external investors for every pound
spent on projects.”
> We have already established a strong partnership with the Minas
Gerais Development Bank (BDMG), to run this model.

6. Financial Education Hub
> Promote financial and legal services in Brazil, by creating a platform
to back sustainable projects, through City expertise in insurance,
banking and asset management. It will also act be an educational
platform on green finance.
> This platform will provide convenient and efficient education to
clients and customers. It will offer investment advice, investment
vehicles, insurance policies, legal advice, advisor to certify
green projects (developed in the previous projects), improve
disclosure of environmental risks, as well as advertising
trustworthy green projects.

7. Capacity Building for Green Projects
> Provide capacity on green project development to government, big
industries and SME`s to increase the quality of bankable projects.
Identify investment opportunities, working closely with the
Educational Hub to match projects with the UK offer on low carbon
technologies and climate services.

8. Thank You!
Luciana.carrijo@fco.gov.uk
UNCLASSIFIED