BrazilAnnounces $10 billion for green industries and Amazon conservation
The Brazilian government is expanding green financing to drive low-carbon industries and Amazon conservation. This is achieved through an expansion of the EcoInvest program, amid increasing political pressure on the country’s environmental policies. Brazil has allocated up to 50 billion Brazilian reals ( approximately $10 billion) to fund green industries, low-carbon technology, and Amazon conservation. The program is a development of the EcoInvest financing scheme introduced during the COP30 climate summit when Brazil hosted the annual climate forum. In the latest announcement, the Brazilian government has set aside an additional 3.1 billion Brazilian reals ( approximately $617 million) to support ecological investments in the Amazon. This funding will be used for bioeconomy development, sustainable tourism, and infrastructure projects that preserve the forest. The Brazilian Ministry of Environment states the financing operates through a blended finance approach. The government provides low-interest loans to banks at an annual rate of 1%, while banks are required to mobilise at least four times the public funds from private investments. So far, the EcoInvest program has mobilised around 140 billion Brazilian reals ( $28 billion) from combined public and private financing. National Bioeconomy Secretary of Brazil’s Ministry of Environment and Climate Change, Carina Pimenta, said the funding could support cooperatives producing Amazon-specific products like açaí and Brazilian nuts, as well as tourism infrastructure in conservation areas. The Amazon is the world’s largest tropical rainforest and plays a critical role in global climate stability. Brazil controls over 60% of the Amazon’s area, much of which is in the country’s poorest states. However, investments in the Amazon have traditionally been high-risk and costly. Therefore, President Luiz Inacio Lula da Silva’s administration launched EcoInvest in 2024 to reduce investment risks through various financing guarantees.