The Climate Fund enters operation with R$ 235 million

Comments Off | 11-29-2011

In the coming year the figure could reach R$ 1 billion for projects that combat climate change

The Steering Committee of the National Fund on Climate Change issued formal approval for the first qualified projects in September 2011; they will receive R$ 235 during this year. Of this total R$ 200 million is funded by the National Bank of Economic and Social Development (BNDES) and R$ 35 million will come from non-reimbursable resources. All the projects meet the guidelines for combating climate change and reducing greenhouse gas emissions. Fund resources come from oil exploration activities in Brazil.

For 2012 the expectation is to reach a value of R$ 400 million, of which R$ 360 million will be financed by the BNDES, according to information from the Ministry of Environment (MMA). The goal of the Brazilian Government is for the Climate Fund to reach an annual value of R$ 1 billion in the first half of this decade.

According to the Climate Fund manager, Marcos Del Prette, it is natural that the initial value is lower than in the following years, since companies are adapting to the program requirements. “From now on, having experience with the first projects planned, the trend is for the values to increase exponentially”, confirms Del Prette.

More than half the amount available for 2011 will be invested in the Northeast region. “It is one of the regions in the country which is most vulnerable to climate change”, said the Director of the Department of Climate Change at the Ministry of Environment, Karen Regina Suassuna, referring to areas at risk of desertification or long periods of drought.

Commitment

The National Fund for Climate Change is an innovation in terms of funding for adaptation and reducing greenhouse gas emission in developing countries. Its budget, which could reach R$ 1 billion per year, comes from special charges on oil exploitation. The project also accepts donations from national and international public or private entities, among other methods, as provided for by law.

The program demonstrates Brazil´s strong commitment to reducing greenhouse gases. The resources are applied in several activities, among which are support for sustainable productive chains, scientific analysis of impacts and vulnerability, projects to reduce carbon emissions from deforestation and forest degradation, and development and dissemination of technology to mitigate greenhouse gas emissions. Countries such as Germany and Japan have expressed interest in understanding the program in order to develop their own models.

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Posted in FDI Brazil statistics, General |

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