Brazil

Brazil, a country with continental dimensions, is in a position to address the challenge of achieving growth reconciling social progress, environmental protection and the fight against climate change. AFD is assisting Brazilian territories along this path and is developing partnerships to support this transition.
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Stairs, worker, Brazil
AFD AND BRAZIL: SUPPORTING THE ECOLOGICAL AND SOCIAL TRANSITION
Stairs, worker, Brazil

Developing low-carbon urban mobility

BRT line in Curitiba, Brazil

Developing low-carbon urban mobility

The population of Brazilian cities is constantly growing, meaning they are faced with a chronic lack of infrastructure, transport congestion and social inequalities, which are sources of violence. To improve the quality of life of people and promote sustainable, inclusive and smart cities, AFD finances projects led by federated States, municipalities, public companies and local development banks.

Urban development is understood as a whole and includes issues covering mobility integrated into public spaces, social housing, access to essential services, as well as the use of renewable energies, urban biodiversity, innovation, digital technologies, cultural and creative industries:

Promoting the energy transition

ethanol production plant, biofuel, renewable energy, Brazil

Promoting the energy transition

Brazil is one of the world’s largest energy consumers. It also has substantial natural resources allowing power generation mainly based on hydropower. However, generation is weakened by the recurrent flooding, meaning the country needs to find new renewable energy sources. It can count on its huge wind, solar and biomass potential for this.

To promote low-carbon growth, AFD supports the development of green energies and the promotion of energy efficiency:

Forging partnerships on the SDGs and climate

Local recycling / waste depot, Brazil

Forging partnerships on the SDGs and climate

Brazilian development banks play an active role in scaling up green finance for the climate, both in international dialogue platforms (International Development Finance Club, ALIDE) and at local level. AFD has close relations with these actors, with the aim of jointly stepping up the promotion of the Sustainable Development Goals (SDGs) and contributing to the implementation of the Paris Agreement at territorial level:

  • We are supporting the Minas Gerais Development Bank (BDMG) in financing municipal investment projects with positive climate impacts.
  • We are assisting the Far South Regional Development Bank (BRDE) with its “Sustainable Production and Consumption” program, which finances projects compatible with the protection of the environment in the South region of Brazil.

Moreover, AFD is a partner of the Institute for Applied Economic Research (IPEA), a public research foundation and member of the OECD Development Centre. One of the work areas concerns the measurement of development financing in relation to the SDGs.

AFD is also interested in agricultural and forest territories, which account for a substantial proportion of Brazil’s national contribution to the fight against climate change.

40
projects financed in 11 years
EUR 1.9bn
committed since 2007
250000
people with improved access to sanitation

Brazil, a country with continental dimensions, is, with its 207 million inhabitants, the world’s 5th most populous country. It stretches over an area of 8.5 million km², making it the world’s 5th largest country. It borders the Atlantic Ocean in the East and is home to two-thirds of the Amazon Forest and exceptional biodiversity: 14% of all known species are identified there. Its border with France extends over more than 700 km.

Brazil has experienced years of economic development, which have made it the world’s 8th largest economy. This growth is based on a vast domestic market (it has a middle class of some 100 million people) and a diversified economy: the world’s 3rd largest exporter of agricultural products, one of the leading exporters of mining products, a strong industry and modern services. The country is one of the major emerging powers making up the BRICS group.

However, between 2015 and 2017, the economic giant experienced a deep recession, which it is only just beginning to come out of. In addition, prosperity does not benefit everyone: Brazil is still marked by social inequalities, insecurity and a chronic lack of infrastructure, which it needs to overcome. Furthermore, the exploitation of its mineral wealth and the development of agro-business continue to put a heavy strain on its natural resources.

Consequently, Brazil needs to renew with growth that combines environmental protection and social progress. It also has a crucial role to play in the fight against climate change. The country is proactive in international climate negotiations and has pledged to keep the deforestation of the Amazon in check, which is its main source of CO2 emissions. But it has also pledged to promote renewable energies, improve the quality of transport and preserve its water resources.

AFD has been active in Latin America since 2007 and is working with Brazil to promote a sustainable and solidarity-based development model, with the climate being a strong marker for its operations in the region. It focuses on a partnership-based approach, bringing together Brazilian and French actors. AFD has a wide variety of operating methods in Brazil: loans to the public sector (and private sector via Proparco), mobilization of grant funds to finance technical assistance and expert missions, support-advice services, public policy dialogue. 

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Latin America | Brazil

Brazil: The challenges of Curitiba

Faced with demographic pressure and an ever-increasing number of cars, Curitiba is stepping up its efforts to retain its image as the Brazilian leader in terms of sustainable cities and the fight against climate change.

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