Supporting BRDE’s strategy for financing SDG-oriented projects

The South of Brazil, made up of the states of Paraná, Santa Catarina, and Rio Grande do Sul (30 million inhabitants, about 15% of national GDP), is the country’s second-largest economic region, thanks in particular to the agriculture and livestock sectors. Its territory of more than 500,000 km² is roughly the size of France. The region’s economic activity generates numerous significant social and environmental impacts. The main challenges relate to the sustainable development of cities (mobility, urban planning, housing, water/sanitation), agriculture and livestock (which account for 20% of Brazil’s GHG emissions), and support for economic agents in adopting more sustainable practices (production methods, employment and inequality reduction, waste management).

Brazilian public banks aim to finance sectoral transitions aligned with public policies in support of the SDGs and the 2030 Agenda.

Since 2018, in line with the environmental challenges of the southern region and Brazil’s environmental and climate policies, AFD and BRDE have built a strategic partnership to accelerate the region’s transition toward sustainable development. Over 5 years, AFD has mobilized €220 million in three credit lines to finance sustainable investments in the region, and €1.3 million in grants to support BRDE’s transition toward more inclusive and responsible financial practices. These resources, made available by the bank and tailored to the needs of end beneficiaries, have been directed to high-impact and concrete investments in various sectors (industry, agriculture, urban planning, water management, healthcare).

Thanks to the multiplier effect of this intervention model, a large number of beneficiaries can be supported through tangible investments that improve the population’s quality of life in line with public policy priorities.
So far, the first two credit lines (with the third still ongoing) have strengthened the investment capacity of 78 economic actors and municipalities, creating many jobs and avoiding the emission of 2,822,473.79 tonnes of CO₂ equivalent.

In addition, through a technical cooperation program aimed at building the capacity of BRDE’s clients, the third credit line will help the bank promote financial inclusion for women entrepreneurs and reduce gender inequality.

he project aims to support BRDE’s strategic evolution so that it can fully fulfill its mission as a public development institution and consolidate its position as a pioneer in promoting the SDGs and the 2030 Agenda.

In terms of financed projects, the program focuses on reducing greenhouse gas emissions and supporting mitigation and adaptation investments to enhance the region’s resilience to climate change.

In the social sectors, the project aims to expand access to essential services, particularly healthcare and education.