This document summarizes the status of climate funding globally and in Brazil, and proposes a new financial mechanism to bridge the scale gap between large international funds like the Amazon Fund and local stakeholders in the Amazon. It notes that while over $33 billion has been pledged globally for climate funding, less than $2.5 billion has actually been disbursed. In Brazil, the Amazon Fund has $1.01 billion pledged but no approved projects from local stakeholders due to lack of capacity and high transaction costs. The proposed new mechanism would access wholesale funds and disburse them locally according to benefit-sharing agreements with local stakeholders.

1. Green development in the Amazon
Partnership Funbio / TNC
Sponsored by Prosperity Fund/UK Govt

2. Climate Funding Status in the World
• Over 33 billion dollars pledged
• Almost 10 billion dollars deposited
• Little over 6 billion dollars approved
• Less than 2.5 billion dollars disbursed
*SOURCE: CLIMATE FUNDS UPDATE

3. Brazil Climate Funds Status
• Amazon Fund has 1.01 billion dollars pledged by
Normay (1 billion) and Germany (14 million)
• Funds are disbursed as projects are approved and
implemented
• Brazilian national funds like the Climate Fund are
still in early development stage, but have huge
potential

4. Amazon Fund
approved projects
• 7 Municipal projects
• 6 State projects
• 10 NGO projects
• 6 University projects

5. How many projects from local
Stakeholders?
ZERO

6. Why there aren't projects from local
stakeholders?
• Lack of local capacity
• High transaction costs to negotiate with
BNDES
• Scale GAP (BNDES operates at “wholesale” scale
while local stakeholders operate at “retail” scale)

7. Green Development in the Amazon
“Bridge the scale GAP, developing a financial
mechanism which is able to access “wholesale”
scale funds and disburse localy following benefit
sharing arrangements agreed by local
stakeholders, bringing economic development
in the region towards more sustainable
patterns”

8. How we are going to do it?
• Consultation with local stakeholders;
• Development of a benefit sharing proposal
• Design of the financial mechanism
• Launch of the financial mechanism accessing
“low hanging fruits” already identified (the
Amazon Fund)

9. Thank you!
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