Brazil is working hard to secure foreign funds for its green makeover, aiming to adopt more sustainable production methods.
This move faces challenges, but Neirevane Nunes, an environmental expert, believes in the effort.
In 2023, President Luiz Inácio Lula da Silva’s team rolled out the Ecological Transformation Plan. This plan backs the shift to green with government money.
It includes green bonds and improving the Climate Fund. Soon, it will add a carbon market and new taxes to help the economy and the environment.
In November, Brazil’s first green bonds attracted $2 billion from global investors, a big win.
“Even with this win, getting foreign money for the green shift is tough,” Nunes said. He noted issues like currency swings and high loan costs as obstacles.
Right now, only 6% of Brazil’s funds for green projects comes from outside Brazil. This is low compared to other places.
At the Eco Invest Brasil event, Minister Marina Silva talked about breaking down barriers for the Earth’s health. ”
The G20, with most of the world’s capital and tech, also causes most of the CO2 pollution. If public and private sectors work together, we can make a big difference,” Silva said.
As G20 leader in 2023, Brazil suggested ways to attract more foreign investment.
One such method was the Climate Fund, which received a boost of 10 billion reais ($2 billion) in 2023.
Attracting more private money
Brazil wants to use this money to attract more private investment.
It plans to grow the market, make projects better, and get more people to compete. This includes help from banks and international groups.
“We’re not just trying things. We have a plan to bring more capital to Brazil and make it richer,” Silva explained.
The plan includes loans for mixed investments and bonds for long-term projects.
It also supports local green projects and gives technical help for big projects, with an extra $2 billion from the IDB for these goals.
This shows how important and connected these efforts are for a greener and more prosperous Brazil.