Financing the transition to a low-carbon economy and sustainable investments in Amazônia Legal and northeast Brazil

AFD works with public development banks to support the financing of the Sustainable Development Goals (SDGs). In Brazil, BNDES supports large-scale projects nationwide and has long played a central role in financing public policies for sustainable development.

The bank is a major player in financing assets that diversify Brazil’s energy matrix (wind, solar, biomass) and in developing modern, low-carbon public transport services. More recently, BNDES has become a key catalyst for implementing national environmental policies and for managing the Amazon Fund.
The bank is now committed to intensifying its initiatives in the Brazilian Amazon, aiming for a more sustainable and inclusive future for the region.

Starting in 2014, BNDES and AFD supported public policies for renewable energy and energy efficiency, contributing to the diversification of the national electricity mix and the reduction of greenhouse gas emissions, through a USD 206 million credit line.

In 2021, the partnership was extended to the transport sector, as BNDES began structuring public-private partnerships (PPPs) for municipalities and states.

In 2024, a new operation was launched to support project financing in the Amazon and, to a lesser extent, in northeastern Brazil, with the aim of improving access to essential goods and services for local communities, while also promoting innovative and sustainable financial practices that help protect Brazil’s natural heritage.

The first project consolidated the cooperation between the two institutions.
In the energy sector, the operation financed five wind farms in the north east (installed capacity: 5 x 29.6 MW) and five biomass power plant modernization/expansion projects. In the transport sector, the grant financed feasibility studies for the structuring of Bus Rapid Transit (BRT) projects in regional capital cities. The second financing operation will focus on improving access to essential goods and services and on the development of economic initiatives that promote decent job creation and biodiversity conservation.