Rio De Janeiro, Nov 13 — Brazil on Thursday announced a financing initiative expected to mobilise about 39 billion reais (seven billion US dollars) for energy transition, industrial decarbonisation and other sustainability projects in Brazil.
Brazilian Development Bank (BNDES) President Aloizio Mercadante made the announcement at the 31st United Nations Climate Change Conference (COP31) in Antalya, Türkiye, with Brazilian President Luiz Inacio Lula da Silva in attendance.
The initiative brings together the state-owned BNDES, the Green Climate Fund (GCF) and private investors, with the aim of leveraging public funds and multilateral financing to attract private capital and expand investment in climate projects in Brazil, Xinhua News Agency reported.
The GCF approved 1.39 billion reais (250 million dollars) for the Catalytic Transition Fund Brazil (CTF), managed by Brookfield, and 278 million reais (50 million dollars) for the Flying Rivers Capital fund. Both funds were selected through a call for climate financing proposals launched by BNDES in 2025.
Under the initiative, BNDES will invest 1.1 billion reais (197.8 million dollars) in the CTF and 540 million reais (97.1 million dollars) in Flying Rivers. The bank had previously allocated 870 million reais (156.5 million dollars) to Just Climate Brasil, a fund managed by Generation Investment Management, an asset manager founded by former US Vice President Al Gore.
The three funds aim to raise a combined 13 billion reais (2.34 billion dollars) in equity capital. According to BNDES, each real invested as equity is expected to attract at least two additional reais in debt financing, bringing potential financing for climate projects to about 39 billion reais (7 billion dollars).
"The approved contributions are international recognition of the quality of the projects and Brazil's ability to mobilize climate capital," Mercadante said.
He said the GCF's participation strengthens the bank's strategy of combining domestic public funds, concessional international financing and private investment to improve financing terms for large-scale decarbonization and ecological transition projects.
COP31, which will run until Nov. 20, brings together government representatives, multilateral bodies, financial institutions and international organizations in Antalya to discuss climate finance, emissions reductions and the transition to low-carbon economies.