Funds will support modernization, expansion, and innovation projects for productive development in the Amazon, Cerrado, Caatinga, and Pantanal regions of the country.
BELÉM, Brazil — The Inter-American Development Bank (IDB) and the Brazilian Development Bank (BNDES) signed a letter of intent today to enable $1 billion (approximately 5.3 billion reais) in financing for micro, small, and medium-sized enterprises (MSMEs) operating in four strategic biomes of the country: the Amazon, Cerrado, Caatinga, and Pantanal.
The initiative, known as the PRÓ-BIOMAS Program, aims to expand access to competitive financing for sustainable practices among MSMEs and small, rural producers, strengthening the bioeconomy, sustainable agriculture, and value chains in renewable energy. The letter was signed by IDB Group President Ilan Goldfajn and BNDES President Aloizio Mercadante during COP30.
“The PRÓ-BIOMAS Program is part of our Amazonia Forever program. It strengthens MSMEs operating in Brazilian biomes, simultaneously promoting sustainable regional development and environmental preservation in strategic areas of the country,” said Goldfajn.
“PRÓ-BIOMAS builds on the successful Pró-Amazônia program. This initiative adds to a series of efforts by the IDB and BNDES to foster viable, lasting, and high-impact solutions for sustainability, including support for structuring public-private partnerships for forests and creating innovative financial instruments,” Goldfajn added.
“Strengthening credit for MSMEs that produce and innovate in the Amazon, Cerrado, Caatinga, and Pantanal biomes means investing in the foundation of our economy and preserving our natural heritage. Every real financed is a step toward fairer, more sustainable, and regionally balanced development,” Mercadante said.
MSMEs account for 99% of businesses in Brazil and nearly half of formal jobs. The IDB’s loan to BNDES will fund productive investments through accredited financial institutions, focusing on MSMEs in states that host strategic biomes. These regions currently face challenges such as deforestation, environmental degradation, wildfires, and water scarcity.
The program will support modernization, expansion, and innovation projects for urban and rural MSMEs. Funds will be used to acquire fixed assets – such as machinery, equipment, vehicles, goods, and services – that drive technological modernization and digitalization of production chains, helping generate jobs and income and fostering more equitable regional development.
About 75% of program resources will go to MSMEs in the Amazon biome, with the remaining 25% allocated to Cerrado, Caatinga, and Pantanal. Investments are expected to boost productivity and sustainable practices, increasing employment and social inclusion, particularly for small, individual producers and historically vulnerable populations.
The “PRÓ-BIOMAS Program – IDB-BNDES Program for Credit Access and MSME Strengthening in Brazil’s Strategic Biomes” aligns with Amazonia Forever, the IDB Group’s umbrella program for sustainable development in the Amazon region.
To implement the program, the IDB and BNDES are advancing procedures under Brazilian law, which includes BNDES’s submitting a request to the External Financing Commission (Cofiex) to obtain IDB financing. Cofiex, part of the Ministry of Planning and Budget, approves preparation of externally funded projects requiring federal guarantees.
PRÓ-BIOMAS reinforces the joint commitment of the IDB and BNDES to a productive and inclusive transition that generates jobs, innovation, and environmental conservation.
On November 10, as part of their long-standing partnership, the institutions also signed a contract for Pró-Amazônia, a program allocating $750 million from the IDB and $150 million from BNDES for sustainable development in the country’s Legal Amazon region. This program will expand credit access for MSMEs and promote productivity and jobs in the Amazon, helping reduce regional inequalities.
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The IDB Group at COP30
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About the IDB
The Inter-American Development Bank (IDB), a member of the IDB Group, is devoted to improving lives across Latin America and the Caribbean. Founded in 1959, the Bank works with the region’s public sector to design and enable impactful, innovative solutions for sustainable and inclusive development. Leveraging financing, technical expertise, and knowledge, it promotes growth and well-being in 26 countries. Visit our website: https://www.iadb.org/en.
Romina Nicaretta
