The institutions will work closely for the implementation of the Ecological Transformation Plan. They are also planning a new IBRD loan of up to US$ 1 billion in support of the Climate Fund
SÃO PAULO, February 26, 2024 - The World Bank Group, the Ministry of Finance and the Ministry of Environment and Climate Change announced today a partnership to boost public and private climate-related investments in Brazil. This initiative aims to prospect and optimize the necessary resources to finance solutions that tackle the effects of climate change in the country and promote the decarbonization of the economy.
To this end, the three institutions signed a memorandum of understanding (MoU) on the sidelines of the G20 Finance Ministers' meeting in São Paulo. Key areas for collaboration include exploring technical and financial solutions to support major instruments for climate resilience in Brazil, such as the Ecological Transformation Plan and the Climate Fund. The institutions are also working on a potential World Bank US$ 1 billion allocation to the Climate Fund, with initial focus on forests, green and resilient cities, and solid waste management.
"The World Bank Group program in Brazil is well-aligned with the Ecological Transformation Plan. This MoU aims to support its implementation by scaling up projects focused on reducing emissions and boosting the green economy, leveraging the private sector, PPPs, and carbon markets. Helping countries like Brazil develop their green potential is a priority for the World Bank," said World Bank Vice President for Latin America and the Caribbean, Carlos Felipe Jaramillo.
"The Ministry of Environment and Climate Change is active along two pivotal axes of sustainable development: combating offenses against our nation's natural heritage and fostering a new era of economic and social prosperity. Today's collaboration with the World Bank marks yet another tangible stride towards establishing a sustainable economy that contributes to the fight against inequality," remarked Marina Silva, the Minister of Environment and Climate Change.
"There is a consensus that emerging economies will play a key role in the energy transition process, and that private capital is essential to support the effort that must be made over the years," said the National Treasury Secretary of the Ministry of Finance, Rogério Ceron. He emphasizes that this program is being built in collaboration with the crucial support and partnership of the World Bank, IDB, and the Central Bank. "This is a relevant and consensual agenda bringing important players together to build something new."
As part of its mission to boost shared prosperity on a livable planet, the World Bank Group has been a strong partner in promoting sustainability in Brazil. Among its activities, it has joined the Green Coalition to support sustainable development in the Amazon and discussed how economic development and preservation can go hand-in-hand in the region.
The World Bank has also provided in-depth analyses of how Brazil can meet its climate goals, and has promoted groundbreaking climate projects in the country, such as an innovative US$ 500 million Climate Finance Solution to expand sustainability-linked finance and help the private sector access carbon credit markets.
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