NDB will provide a sovereign guaranteed loan to BNDES for on lending to public and private sector for climate change mitigation and adaptation projects in Brazil. The sectors to be financed under the Project will follow national guidelines and prioritization: Renewable Energy, Efficient machinery & equipment, Sustainable Urban Mobility, Solid Waste, Sustainable cities, Native Forests, Improvement of Charcoal Processing, Carbon, Management/Services, Innovation.

The Project is designed to increase investment in climate change mitigation and adaptation projects in Brazil, in line with the Brazil’s commitments of GHG reductions under the 2015 Paris Agreement.

BNDES will be responsible for the overall Project monitoring and evaluation, including selection of sub-projects, collection of all information and supervision of sub-project performance. Sub borrowers from the public and private sectors will be responsible for planning and implementing sub-projects and sharing implementation reports with BNDES. The Project will be implemented in four years.

The Project has been categorized as Category FI-B in line with NDB’s Environmental and Social Framework. The Project’s main environmental and social impacts may include resettlement, conversion of natural habitats, emissions during construction, occupational and community health and safety. The negative impacts will be mitigated by adherence to country system requirements, BNDES’ E&S policies, and the implementation of an Environmental and Social Impact Management Plan.