Brazil Supports Green Growth by Working with the Largest Climate Finance Alliance

Brazil declared on Monday that it would collaborate with the largest financial climate coalition globally to accelerate financing for renewable energy and environmental restoration initiatives, like replanting the Amazon rainforest.

The global alliance of asset managers, banks, and insurance companies, Glasgow Financial Alliance for Net Zero (GFANZ), and the Brazilian development bank BNDES will collaborate to raise public and private funding.

Although Brazil’s announcement lacks the multibillion-dollar investment commitments, the partnership is reminiscent of some current efforts to assist nations, such as Indonesia’s $20 billion program to phase out coal.

Aloizio Mercadante, President of BNDES, told reporters that the government would act with “urgency,” but he would not provide an estimate of the expected investment or a timeline for its launch.

The announcement coincides with President Luiz Inacio Lula da Silva’s attempt to lead global climate efforts over the next two years by hosting the COP30 climate summit in 2025 and the Group of 20 largest economic powers this year.

Former governor of the Bank of England Mark Carney, co-chair of GFANZ, compared the initiative to a “more comprehensive” version of the Just Energy Transition Partnership (JETP), which finances efforts to phase out coal in South Africa, Vietnam, and Indonesia. The United States and other affluent countries, with both public and private funding, including multilateral development banks, support JETP.

Carney stated, “This is just much more comprehensive across the whole economy as opposed to just energy and it’s moving forward as opposed to dealing with stranded assets,” outside of a green finance event in São Paulo.

The investment platform, according to Carney and Mercadante, will be used to grow the already sizable renewable energy industry in Brazil as well as initiatives like the “Arc of Reforestation,” which seeks to restore 60,000 square kilometers (23,160 square miles) of degraded or destroyed Amazon rainforest.