Brazil is one of the most urbanized countries in the world and its cities are faced with increasing transport congestion and pollution. The number of inhabitants is constantly rising, which comes with an increase in the need for mobility. Brazil’s challenge lies in developing public transport provision that is reliable, accessible to all and environmentally friendly, as part of an integrated urban development approach. 

AFD assists local authorities in this approach and works for “soft” mobility. This results in more extensive transport services, shorter travel times, fewer individual vehicles, and therefore less traffic and pollution, and better served suburbs. 

We have established partnerships to support several large cities:

• Curitiba, to extend the capacity of the public transport network and create an ecological corridor along the river which runs through the city
• Rio de Janeiro, to facilitate travel by upgrading suburban trains, extending the metro network and developing a “single ticket”
• São Paulo, for the creation of a train line connecting the city center to Guarulhos International Airport.

We are also supporting the urban mobility policies of the States of São Paulo and Rio de Janeiro via a Fund for Technical Expertise and Experience Transfers (FEXTE). 

Brazil is the world’s 8th largest energy consumer and has considerable natural resources. Consequently, 40% of its energy mix is based on renewable resources. Hydropower dominates the sector, but the recurrent droughts weaken production: the country needs to find new energy sources. It can count on its enormous wind, solar and biomass potential for this. AFD is assisting Brazil’s public policies for the development of green energies and the promotion of energy efficiency. 

For example, we are supporting the investments made by electricity companies in power transmission and distribution grids and in innovative technologies, such as smart grids.

Water resources endangered

Brazil holds some 12% of the world’s freshwater. These resources are abundant, but unevenly distributed and increasingly exploited due to the expansion of the agriculture sector, the growth in consumption by individuals and industry, and the increase in hydropower generation to meet demand. 

AFD is helping actors in the sector reduce losses on water distribution networks, improve the energy efficiency of treatment plants, reuse wastewater and preserve basins and watersheds.    

And excessive amounts of waste

Many Brazilian cities do not have up to standard landfills, while the quantity of urban waste is constantly increasing. Consequently, Brazil has set key objectives, via its National Waste Policy, in terms of shared responsibility and promoting clean technologies. Other challenges include putting an end to fly-tipping and developing waste sorting, as well as integrating waste collectors. 

AFD is assisting Brazilian municipalities and private actors in the implementation of the government program. We focus on exchanges of expertise between Brazilian and French actors for this purpose, especially for the issues of recycling, composting and energy production.

For example, we are operating in the City of Toledo, in Paraná State, where we are financing the municipality’s environmental program. 

AFD has a close partnership with the National Bank for Economic and Social Development (BNDES), both as a member of the International Development Finance Club (IDFC) and at local level. This relationship provides a platform for dialogue on the themes of green finance and climate finance. 

At the same time, our partnership with the Institute for Applied Economic Research (IPEA), a Brazilian think tank attached to the Ministry of Planning and member of the OECD Development Centre, promotes the production and dissemination of knowledge on subjects of common interest. The main areas of work: alternative models for growth pathways directed towards the energy transition (GEMMES project), urban development issues, and Brazil’s role as an emerging donor. 

Brazil is today the world’s 8th largest economy. But it has been experiencing a period of recession since 2014. The federal authorities have set out to revive the country’s economic activity by adopting a massive plan for concessions in infrastructure in order to upgrade and manage highways, rail transport, airports and ports. Consequently, Brazil’s financial market and the international private banking sector are being called on to play a key role in infrastructure financing. Partnerships between public and private actors are also promoted.

AFD is actively involved by supporting innovative projects led by territorial authorities, concessionaires for public services and private actors. How? Through green credit lines in partnership with public banks (or private banks via PROPARCO), to promote climate finance, and through assistance in setting up public-private partnerships. The projects supported concern renewable energies, energy efficiency, street lighting, depollution and waste management, water and sanitation and urban mobility.

AFD also supports technological innovation and the digital revolution in these various sectors, with the aim of promoting “smart” cities.