Brazil has an estimated green investment potential of US$ 1.3 trillion, considering only the energy, transportation, building, waste management and industrial energy efficiency sectors between 2016 and 2030; based on data from the International Finance Corporation (IFC).
In April 2021, the Climate Bonds Initiative (CBI), in association with the Inter-American Development Bank (IDB) and the Secretariat for Infrastructure Development of the Ministry of Economy, revealed the results of the project “InfraInvest: Sustainable Infrastructure for Brazil”. The study was carried out between 2017 and 2020, and proposed solutions to reduce the investment deficit in infrastructure in Brazil through sustainable measures and improvements in the business environment.
Also according to the project, sectors such as water and sanitation, solid waste management with power generation and urban mobility have great potential for green investments. InfraInvest, in association with Pinheiro Neto Advogados, also identified legal recommendations and regulatory adjustments to leverage institutional investments for the sustainable infrastructure sector. Among the proposed recommendations is the revision of standards for incentivized bonds, project guarantees and exchange hedges.
The project also shows how municipalities can access consortium mechanisms in order to finance sustainable infrastructure projects, and prepares a Guide with practical information on the issuance of green bonds and other thematic bonds of the sector to guide potential issuers on the sustainable labeling process.
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