Fostering Climate Finance in Brazil

August 26
th
, 2014
BNDES is a 62 years old institution, ith a !ery solid
"inancial #osition$
Founded on June 20
th
, 1952.
100% state%oned company under #ri!ate la&
Main provider of long%term "inancing in Brazil (emphasis on in!estment'&
Strong "inancial statements
(o)ust "iduciary standards (on !erformin" #oans in 201$ % 0,01%&
'ave (een raising international "unding from M)Bs and other )Bs since 195$ (*2
contracts resultin" in +,) 15,2 (illion&
Dis)ursements in 201* + ,SD --,1 )illion ( +,) 10.- (illion to environmental
pro.ects&
2
In"rastructure In"rastructure
.ea!y Industry / Consumer 0oods / 1echnological De!elo#ment .ea!y Industry / Consumer 0oods / 1echnological De!elo#ment
Im#orts
Su)stitution
Im#orts
Su)stitution
Energy and Agri)usiness Energy and Agri)usiness
E2#orts E2#orts
3ri!atization 3rogram 3ri!atization 3rogram
,r)an and Social De!elo#ment ,r)an and Social De!elo#ment
Social Inclusion Social Inclusion
Inno!ation Inno!ation
Sustaina)ility Sustaina)ility
Small Business Small Business
50s 60s 70s 80s 90s 00s Today
3
&&& and contri)uted to the country de!elo#ment in
se!eral dimensions&
,ince its foundation B)/, have (een ada#ting its #riorities according to the
main de!elo#ment challenges faced (y the country and desi"ned0implemented
the strate"ies needed to overcome such challen"es.
4
1he design and im#lementation o" each de!elo#ment
strategy is )ased on three #illars&
Sectoral De!elo#ment
Strategies
Ro(ust
,ectoral
1nalysis
)iversified
!ortfolio of
2inancial
3nstruments
4oordinate
/fforts 5ith
Relevant
,ta6eholders
ational
7overnment
#ocal 7overnments
2inancial
3nstitutions
!rivate ,ector
4ivil ,ociety
/8uity (direct and
!/ 2unds&
Mar6et9rated and
4oncessional #oans
7rants
7uarantee
Mechanisms
)esi"n of !!!s
Rene5a(le /ner"y
+r(an :ransport
,anitation
Biofuels
1mazon 2und
/nvironment
,ocial 3nclusion
1he su##ort to ind "arms is a good e2am#le o" ho this
4three%#illars a##roach5 is im#lemented&
2001
)espite an identified potential of
of 1-$ 7;, Brazil had no
relevant installed capacity of
5ind po5er.
2001-03
:he /ner"y Ministry esta(lishes t5o feed9in9tariff pro"rams (!roe<lica and
!roinfa& to (oost 5ind ener"y. B)/, launches a specific credit line to
foster alternative rene5a(le sources.
3n construction= $51,9 M;
3n operation= 1*,0 M;
3n construction= >?5,? M;
3n operation= ??1,0 M;
3n construction= 1.-52,- M;
3n operation= 1.$$9,2 M;
3n construction= = 1?$0,$ M;
3n operation= ?9,0 M;
3n operation= 2-,* M;
3n construction= $*9,> M;
3n operation= $-,5 M;
3n operation= 5*>,2 M;
3n construction= 1.>$1,? M;

3n operation= 2*,1 M;
3n operation = 2,5 M;
3n operation = 2$?,- M;
3n operation = -?0,0 M;
3n construction= 1.$??,9 M;

Today 2008
B)/, desi"ns a pro"ram to foster the
production of 5ind tur(ines in Brazil,
attractin" more than 10 suppliers and
resultin" in a drop in the ener"y price.
.
2irst auctions 5here 5ind farms
(eat other sources
B)/, supports 5ind pro.ects
throu"h structured financial
operations (com(inin" (rid"e
loans, !2 and (onds&,
contri(utin" to "enerate a
pipeline of pro.ects of 1$ 7;
in installed capacity (y 201*.
2009
5
1he Amazon Fund is an e2am#le o" an initiati!e de!elo#ed )y
another )ody o" the "ederal go!ernment$
:he 1mazon 2und 5as created (y the
/nvironmental Ministry of Brazil, after ne"otiate
5ith the or5e"ian 7overnment (first donor& and
define the operation model 5ith B)/,.
0
5000
10000
15000
20000
25000
$0000
199? 199> 199* 1999 2000 2001 2002 200$ 200- 2005 200? 200> 200* 2009 2010 2011 2012
6m@
DeforestedareaintheAmazonBiome
(km)
3t is a performance (ased mechanism, 5here the
fund raisin" potential is defined comparin" the
effective deforestation rate and a 10 years
historical (aseline.
6
$ to o!ercome an enormous challenge$
:he Brazilian 1mazon has -.2 million 6m
2
, 2$
million people (-?% of them (elo5 the poverty
line& and over *0% of the ori"inal forest.
:he 2undAs "overnance includes (odies of the
national "overnment, local "overnments and
representatives from the civil society.
7
$ a res#onsi)ility that leaded BNDES to ada#t its organization
structure and de!elo# ne s6ills and tools&
July 2014
58 projects supported (USD = 387 mi)
29 projects under consultation or analysis
July 2009
first projects were submitted
US$
786 million
contracted
Donations
1s of 0-0$00201-
REDUCTIONOFDEFORESTATIONVIA
SUSTAINABLEDEVELOPMENT
R$771.772.33!9
SUS"#$%#&'(
)R*DU+"$*%
$%S"$"U"$*%#'
D(,('*)-(%"
'#%D.US(
)'#%%$%/
S+$(%"$0$+ #%D
"(+1%*'*/$+#'
D(,('*)-(%"
R$203.668.186!62
22634
R$37.43.966!21
24934
R$69.417.900!73
2934
R$123.20.300!03
21634
)osition 12.31.2013
Distri5utiono60undsu77ortast8ecom7onentso6t8e'o9ical0rame:or;
#ma<on0und=s lo9ical6rame:or;
+ommunicationand"rans7arency
41Newsbulletins
6Portfolioreports
4AnnualReports(PortugueseandEnglish)
2 Shortfilmsprodued
20 messages!"ear#fundoamazonia$faleonoso%bndes&go'&br
+*0#>sdiscussionsa?aila5leont8e#ma<on0und>s:e5site
http#!!www&fundoamazonia&go'&br!(undoAmazonia!fam!site)pt!Es*uerdo!(undo!ofa&html
:::.6undoama<onia.9o?.5r
+
Steering Comittee:
$
$
$
$
Concessional 7oans
0rants
$
$$
1t the B4oncessional #oansC modality
specific climate technolo"ies that are
not commercial feasi(le in Brazil yet are
selected to (e supported.
E2am#les o" Su##orted Sectors8
(enea)le Energy
,r)an 1rans#ort
En!ironmental
9inistry
R$ 5?0 million
(+,$ 2$0 million&
9
1he Climate Fund is also an initiati!e o" the En!ironmental
9inistry that has BNDES as an im#lementation agent&
Nati!e Forest
At the 4Ino!a5, instruments o" di""erent agents are coordinated to
"oster a set o" selected technologies ithin 6ey sectors&
)o:er +om7anies
Smart /rid and U1,
Rene:a5le (ner9y 2Solar
and @ind4
$ndustry
$nstitutes o6 Science
and "ec8nolo9y and
Design Houses
Grants, Loans e
Euit!
Grants, Loans
an" Euit!
Man"ator!
in#esti$ents in
R%D
Joint effort to provide a more extensive coordination:
fostering innovation
and a better integration of support instruments for
R&D and innovation available to the energy sector
(lectric ,e8icles!
1y5rid and ener9y
e66iciency in ?e8icles
Su77orted (ntities
0ontes de Recursos
'ines
#rticulation #mon9...
*t8er
+om7anies
/o?ernment
-inistry o6
(ner9y
10
10
And e ha!e se!eral other "inancial instruments
designed to "oster climate in!estments&
Forest (estoration
Design o" 333s 3hoto!oltaics
1echnology De!elo#ment
Fund
:enture Ca#ital and 3ri!ate
E;uity Funds
9unici#al Solid <aste
1he initiati!es in #lace #uts Brazil in the right direction to deal
ith Climate Change, )ut there is much more to )e done&
Brazilian Economic Indicators
0>
th
hi"hest 7)!
1
??
th
hi"hest 7)! per capita
1
*5
th
hi"hest ')3
2
1 lar"e economy 5ith a hu"e challen"e
of social inclusion, that 5ill demand
eDpansion of economic activities and
pressure the environment.
1
;orld Ban6, 2012E
2
+)!, 2012 12
9ain De!elo#ment Challenges (elated to Climate8
4ontinue reducin" the Amazon de"orestation rate.
/Dpand the #oer generation ca#acity 5ith a relevant portion of rene5a(le sources.
Im#ro!e land use e""iciency (y adoptin" (est practices in a"riculture and cattle
production.
2ulfill the ur)an trans#ort demand 5ith lo5 car(on alternatives.
Increase the industry acti!ity 5ith rene5a(le sources of ener"y and hi"h efficient
technolo"ies.
Thank you!
Guilherme Martins
Manager
Environmental Division
guilherme.martins@bndes.gov.br