Supporting the transformation of BRDE’s financing strategy in favor of the Sustainable Development Goals

The South Region of Brazil, the second largest contributor to national wealth, relies on intense agricultural and industrial activity, which generates significant environmental impacts (11% of national emissions). The region also faces major social challenges, particularly in access to education, healthcare, and reducing inequality.

In this context, regional public banks play a key role in financing the necessary transitions. BRDE, the development bank of the southern states, had already launched a green strategy through the "Sustainable Production and Consumption" program.

Building on this experience, the bank now aims to structure a comprehensive SDG strategy. This transformation also responds to a need to diversify its funding sources, particularly in a context of reduced federal budget allocations and increasing demand for sustainable investments.

This project aims to support BRDE in transforming its financing model by aligning its operations with the SDGs. It is structured around two complementary components:

• A €70 million credit line to finance projects with high social and environmental impact (renewable energy, sustainable agriculture, social services, etc.)
• A technical cooperation program of €500,000, funded through a FAPS grant, to assist the bank in creating and implementing a sustainable development analysis methodology, defining eligibility criteria and impact indicators, and integrating a gender and climate strategy.

This project is part of a broader institutional consolidation and capacity-building process within BRDE.

BRDE will be able to integrate sustainable development analysis into its entire project portfolio through a structured methodology. This will allow the bank to prioritize SDG-aligned projects and better measure their impact.

Financed projects will aim to:

• Reduce greenhouse gas emissions (notably through renewable energy) ;
• Strengthen climate resilience in territories and agricultural systems ;
• Improve waste management and water quality ;
• Support access to essential services (education, health) in vulnerable areas.

The project will also strengthen BRDE's visibility and credibility as a regional reference bank in sustainable finance.