In line with the international agenda on sustainable development and combating climate change, AFD is supporting Brazil on its path towards low-carbon, resilient and equitable development, leveraging its financial instruments to support regional development players. Our activities include planning urban spaces, sustainable management of natural and water resources and supporting the energy transition and social progress.
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Stairs, worker, Brazil
Stairs, worker, Brazil

Improving regional resilience to climate change

landscape, Brazil

Improving regional resilience to climate change

In Brazil, AFD funds projects led by federal states, municipalities, public companies and local development banks to improve people’s quality of life and promote the development of sustainable cities that are resilient to climate change, cohesive and smart. 

In the megacities of Rio de Janeiro and São Paulo, we are working with French public stakeholders to support public policies for low-carbon urban mobility and an integrated fare system. Line 13 of the São Paulo metro, for example, now links two major hubs: Luz train station and the international airport in Guarulhos. Over 120,000 daily passengers now benefit from this service, which has reduced greenhouse gas emissions by 16 Ktons/year. 

In Paraíba (Nordeste region), we are supporting the public state water and sanitation company in implementing its five-year investment plan to provide universal access to drinking water and sanitation services. The project includes a strong focus on water resource management in this state with its semi-arid climate, as well as initiatives designed to take gender inequality into account in access to services.

Encouraging smart, inclusive cities

Curitiba Brazil city green park urban building

Encouraging smart, inclusive cities

The Brazilian megacities face huge challenges in terms of urban infrastructure and provision of public services. By making mobility and urban revitalization a key priority, regional authorities – federal States and municipalities – have adopted ambitious policies to modernize infrastructure and services. AFD therefore supports the development of regionally integrated, socially inclusive low-emission urban projects, with a special focus on innovation, social progress and fighting gender inequality.

In Curitiba, for example, we are supporting the extension of the public transport network through the creation of a bus line running on biofuel: Linha Verde. The project also includes the recovery of the banks and natural spaces along the River Barigui. 
In Porto Alegre, we have teamed up with the World Bank to co-finance the urban revitalization of the downtown area. The goal is to contribute to resilient, inclusive regeneration. The project will create an attractive environment for investment in the residential sectors and the cultural and creative industries.

Supporting the energy transition

Energy transition in Brazil

Supporting the energy transition

With its vast natural resources, Brazil has adopted a relatively low-carbon energy matrix based primarily on hydraulic energy. However, recurring droughts have weakened production, leading to an increased need for new renewable energy sources. To address this need, the country can leverage its enormous wind, solar and biomass potential. AFD is therefore supporting the development of green energies and the promotion of energy efficiency

Promoting sustainable financial systems

AFD's action in Brazil

Promoting sustainable financial systems

AFD supports federal public financial institutions and regional development banks active in the funding of public policies for sustainable development. To foster a sustainable, inclusive and responsible financial system in Brazil, AFD also supports the national association of development banks, thereby promoting the sustainable finance agenda in Brazil. Our projects include:

projects funded since 2007
billion euros invested since 2007
individuals with improved access to water and sanitation

Brazil is a country with continental dimensions and the world’s fifth-biggest population, with 207 million inhabitants. It covers an area of 8.5 million km², bordering the Atlantic Ocean to the East, while the West is home to two thirds of the Amazonian forest with its exceptional natural resources and biodiversity: it accounts for 20% of the world’s fresh water resources and 14% of all known species have been recorded there. In the North, its border with the French department of Guiana spans 730 km, making Brazil the country with which France has the longest land border.

In the 2000s, Brazil enjoyed an economic boom, leading it to become the eighth-largest economy in the world. Its growth is based on a large domestic market (its middle class comprises nearly 100 million people) and a diversified economy: the world’s third largest producer of agricultural products, one of the leading exporters of mining products, strong industry and modern services. The country is one of the major emerging powers brought together by the BRICS group.

But the Latin American giant went through a severe recession from 2015 to 2017, deteriorating its economic situation, followed by the Covid-19 pandemic, which had a devastating impact on the social fabric. In a post-pandemic environment, it must now return to a growth model that combines economic vitality, environmental protection and social inclusion. Amid the numerous geopolitical divisions in the world today, Brazil is pursuing an active policy to return to the “community of nations”. It has been proactive in negotiations on trade and climate regimes and has pledged to reach carbon neutrality by keeping in check the deforestation of the Amazon – which is its main source of greenhouse gas emissions – while maintaining a low-carbon energy matrix and improving the quality of basic services for its people. 

AFD has been active in Latin America since 2007 and works in Brazil to promote a sustainable and inclusive development model, with a focus on climate mitigation and social inclusion. From its Brazil-Southern Cone Regional Office based in Brasilia, AFD focuses on a partnership-based approach, bringing together Brazilian and French stakeholders on matters of common interest. It has a wide variety of operating methods based on an optimal “Group” approach: financing projects with various stakeholders – Union, federal states, municipalities, financial institutions and public companies – in support of public policies (AFD), supporting the development of the private sector and infrastructure (Proparco and STOA) and providing technical expertise (Expertise France).

AFD’s Brazil office is directly attached to the Brazil-Southern Cone regional office.

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