The partnership is in line with the objectives of the Green Coalition and Amazonia Forever program
NEW YORK - The Inter-American Development Bank (IDB) and Banco do Brasil today signed a letter of intent paving the way for a $250 million financing program, part of a Conditional Credit Line for Investment Projects (CCLIP) of up to $1 billion. The program will promote the bioeconomy and sustainable infrastructure initiatives, with an emphasis on connectivity and renewable energy sources, in Brazil's Amazonian states. The announcement was made during a meeting between IDB President Ilan Goldfajn and Banco do Brasil President Tarciana Medeiros.
The "Bioeconomy Program for the Amazon - BB Amazon BID-Banco do Brasil" is aligned with the bioeconomy pillar of Amazonia Forever, the IDB's holistic umbrella program for the sustainable development of the Amazon region.
It aims to promote an inclusive and sustainable development model in the region, based on two components. The first aims to support the development of bio-enterprises and rural producers that are part of the Amazon's bioeconomy value chains. The IDB and the Green Climate Fund will provide resources for this component.
The second component will finance projects that generate energy from renewable sources and improve connectivity in urban, rural and forested areas of Brazil's Amazonian states, prioritizing isolated locations. This component aims to accelerate the energy transition and reduce connectivity bottlenecks in the region, especially in rural and forested areas, where fossil fuel sources are still used, promoting their replacement with solar energy.
The program also includes technical support from the IDB to train local stakeholders in the preparation and improvement of bioeconomy projects.
“This funding is intended to support initiatives that will yield income and reduce carbon emissions by combating deforestation, preserving biodiversity, responsibly utilizing soil and natural resources, and restoring degraded areas," explained President Medeiros.
"Taking full advantage of the world's gaze on New York for the U.N. General Assembly, we intensified our business agenda in the city. This is yet another demonstration of how we, as a bank, can bring together our corporate dealings with our function of helping the nation's development, with projects that have the ability to create jobs and turn businesses into cornerstones of sustainability and technology in the Amazon region," she said.
The letter of intent is also aligned with the objectives of the Green Coalition, launched in August in Belém, Brazil, which seeks to promote financial solutions and favorable conditions to create and strengthen local economies in the Amazon, as well as boost socially, environmentally and economically sustainable projects, respecting local and regional characteristics. The Green Coalition already has 20 development banks and international partners, and the Latin American Association of Development Financing Institutions (ALIDE) and the Brazilian Development Association (ABDE) are contributors.
"In addition to boosting the forest economy and improving connectivity and the use of renewable energy, we will take advantage of this project to promote the sustainable business of bio-enterprises in the Amazon and organize the commercial promotion of products in the region. These actions aim to create economic alternatives for the population of Brazil's Amazonian states, which is one of the main pillars of Amazonia Forever. We are honored to have Banco do Brasil as a partner in these efforts and for this important milestone for the Green Coalition," said IDB President Goldfajn.
Banco do Brasil has submitted a letter of inquiry seeking authorization for the program from Brazil's External Financing Committee (Cofiex), which is expected to evaluate the request in December. Cofiex is a body within the organizational structure of the Ministry of Planning and Budget that is responsible for analyzing and approving the preparation of projects financed with external resources and guaranteed by the federal government.
About Amazonia Forever
Amazonia Forever is a holistic umbrella program that aims to protect biodiversity and accelerate sustainable development on three fronts: expanding funding, boosting the exchange of knowledge, and facilitating regional coordination between the eight Amazonian countries.
The program is based on five pillars: combating deforestation and strengthening environmental control and security in the context of national governments; the bioeconomy, boosting alternative and sustainable economic activities; people, aiming for adequate access to quality education, health and employment; sustainable cities and infrastructure and connectivity; and sustainable and low-carbon agriculture, livestock and forestry. In addition, it focuses on promoting the inclusion of women, indigenous peoples, Afro-descendants and local communities; climate and forest conservation; and strengthening institutional capacities and the rule of law.
About Banco do Brasil
At 214 years old, Banco do Brasil has surpassed the R$321 billion mark in sustainable credit operations, a growth of 10% in 12 months, and aims to reach a balance of R$500 billion by 2030. This amount was contracted in credit lines with a strong environmental and/or social focus or to finance activities and/or segments that have positive socio-environmental impacts, such as renewable energy, energy efficiency, construction, sustainable transportation and tourism, water, fishing, forestry, sustainable agriculture, waste management, education, health and local and regional development sectors, in order to reinforce the bank's transformative role in Brazil's development and in building an increasingly sustainable future for society. It has also been recognized as one of the world's most sustainable banks in sustainability rankings and indices. Find out more at https://sustentabilidade.bb.com.br/?lang=EN and at https://ri.bb.com.br/.
About the IDB
The Inter-American Development Bank is devoted to improving lives. Established in 1959, the IDB is a leading source of long-term financing for economic, social and institutional development in Latin America and the Caribbean. The IDB also conducts cutting-edge research and provides policy advice, technical assistance and training to public- and private-sector clients throughout the region. Take our virtual tour.
Manzano Guillen, Maria De Gador
Communications Lead Specialist
Borges De Padua Goulart Janaina
Communications Sr Specialist
Molina Medina,Vanessa Carolina
Communications Lead Specialist