IDB, Brazil’s Ministry of Environment, and BNDES Announce $500 Million Contribution to Climate Fund

BELÉM, Brazil - The Inter-American Development Bank (IDB), the Brazilian Ministry of Environment and Climate Change, and the Brazilian Development Bank (BNDES) signed a letter of intent to enable a $500 million contribution from the IDB to Brazil's National Climate Change Fund (FNMC, its Portuguese acronym).

The goal is to deepen collaboration among the three institutions to develop a joint initiative for financing projects through FNMC resources. Actions may include financial contributions from the IDB to the FNMC, strengthening the Fund's capacity to meet Brazil's growing demand for financing for sustainable development projects.

The signing ceremony took place during COP30 and was attended by IDB Group President Ilan Goldfajn; the executive secretary of the Ministry of Environment and Climate Change, João Paulo Capobianco; and BNDES President Aloizio Mercadante.

"We are strengthening the Climate Fund so that financing reaches those who need it in their daily lives - especially small and medium-sized enterprises and local projects. With greater scale, improved governance, and new partners, we will expand our impact," said Goldfajn.

"This agreement reinforces Brazil's commitment to ecological transition and addressing the climate emergency. By joining forces, the Brazilian government, BNDES, and the IDB will expand financing for sustainable projects, strengthening the Climate Fund as an important and strategic instrument for promoting sustainable development and positioning Brazil at the forefront of the global environmental agenda," said Mercadante.

Managed by the Ministry of Environment and Climate Change and implemented by BNDES, the FNMC provides financing for the development of resilient and sustainable projects, assessments, and initiatives.

This project must first undergo the review and approval process of each institution and Brazil'sMinistry of Planning and Budget. As the next step, the Ministry of Environment will submit the request to the External Financing Commission (Cofiex), a collegial body of the Ministry of Planning and Budget responsible for authorizing the preparation of projects with external resources guaranteed by the federal government.