| Project Detail |
The Project Fundo Clima – Brazil National Climate Fund Project is designed to support climate change mitigation and adaptation projects in Brazil. The NDB loan will be used by MMA under the Fundo Clima program for on-lending to climate change mitigation and adaption sub-projects in the sectors of urban mobility, waste treatment, renewable energy, and energy efficiency and etc. Brazilian Development Bank (BNDES) is the financial agent of this fund and is responsible for managing the fund’s operations. The Project will contribute to socio-economic benefits in Brazil’s priority sectors. The Project is also expected to bring crowding-in effect for climate change adaption and mitigation financing in Brazil, with a potential to mobilize an additional USD 2 billion.
- Environmental and Social Aspects
The positive impacts of the Project include contribution to socio-economic benefits in priority sustainable development sectors through positive environmental impacts of climate change mitigation and adaptation. The Project will support Brazilian NDC in reduction of GHG emissions as agreed in the 2015 Paris Agreement.
The Project is Category “FI-B” in line with the NDB’s Environmental and Social Framework (ESF). Main environmental and social (E&S) impacts of sub-projects may include resettlement, conversion of natural habitats, emissions during construction, occupational and community health and safety. In addition, some sub-projects will have sector-specific impacts. These risks will be mitigated by implementing country system requirements and NDB’s ESF.
- Financials
NDB will provide a sovereign loan of USD 500 million for the Project.
- Implementation
The Project is to be implemented over four years. MMA will be the Project Implementation Agency. Procurement will be conducted in compliance with the national law and regulations, and meet the core principles of NDB’s policy. |
