Green Infrastructure Investment Opportunities in Brazil

The release of a new report prepared by Climate Bonds Initiative in partnership with the Inter-American Development Bank was announced on November 21st. This report analyses investment opportunities for green infrastructure in Brazil and provides samples of green and/or potentially green projects in key areas such as renewable energy, low carbon transport, water infrastructure and waste management for power generation in the country.

The aim of the report is to contribute to examine the conditions to meeting the growing demand for green investment opportunities – including green bonds – as
well as to support the country’s transition to a low carbon economy.

The publication is particularly relevant given the circumstances, as green infrastructure presents a huge investment opportunity globally, with an estimated USD100tn worth of climate compatible infrastructure required between now and 2030 in order to meet Paris Agreement emissions reduction targets. Large developing economies such as Brazil comprise green infrastructure investment opportunities that are to be part of their long-term sustainable development strategies and action plans. Despite these investment needs across regions, in a number of developing countries there remains a lack of identifiable, investment-ready and bankable projects. This insufficiency of information and clear understanding of what types of assets and projects qualify for green financing in an expanding green finance market needs to be adequately addressed.

This report, one of a series, provides an in-depth analysis and a series of relevant findings on existing investment potential in Brazil. Precisely, the report asserts that Brazil has an estimated USD1.3tn green investment potential for energy, transport, buildings, waste and industrial energy efficiency in line with the commitments set out in the country’s Nationally Determined Contribution (NDC). This potential compromising multiple opportunities may attract new sources of funding, in particular growing green finance, given that infrastructure finance in Brazil typically has been mostly limited to public financing.

The implementation of vast infrastructure projects through green finance can help to fill funding gaps, meet climate change commitments and provide additional drivers of growth in the country and facilitate the implementation a brown to green (BtG) transition strategy and contribute to improve the macroeconomic outlook.

Source: Climate Bonds Initiative (2019). Green Infrastructure Investment Opportunities BRAZIL 2019.

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