Promoting the financing of sustainable infrastructure in the Northeast

Home to more than a quarter of Brazil’s population across a vast territory of nine federal states (58 million inhabitants – Alagoas, Bahia, Ceará, Maranhão, Paraíba, Pernambuco, Piauí, Rio Grande do Norte, and Sergipe), the Northeast region faces multidimensional development challenges: lagging economic development, infrastructure deficits, limited access to essential goods and services, and stark social inequalities.It is also one of the areas most exposed to climate change, experiencing increasingly frequent and intense extreme weather events.

In this context, the Northeast is entering a phase of consolidating a long-term growth model based on improving access to basic services, boosting the productive capacities of local communities, developing renewable energy, and strengthening connectivity.

This strategy requires significant infrastructure investments and the strong mobilization of financial actors.

As a regional public development bank with a majority of capital held by the federal government and the main financial institution serving the Northeastern economy, Banco do Nordeste do Brasil (BNB) plays a fundamental role in infrastructure development and the implementation of both public and private investments.

BNB is a key partner of AFD in financing development in the Northeast and in the northern areas of Minas Gerais and Espírito Santo.
In response to growing demand for sustainable infrastructure financing, AFD is supporting BNB in strengthening its strategic positioning in favor of sustainable development.

To that end, AFD is providing:

• a €150 million loan to finance infrastructure with strong climate impact and alignment with the SDGs, particularly in key sectors such as energy, water and sanitation, waste management, transport, and public lighting;
• and a €300,000 technical cooperation program to enhance the integration of climate, environmental, and social risks into the bank’s investment strategy.

The project aims to support climate co-benefit investments that enhance the resilience of the Northeast to climate change.
It will also contribute to reducing social inequalities by improving access to essential services in the region’s most vulnerable territories, particularly in the semi-arid zone and in low- and middle-income municipalities.

Moreover, the project will help consolidate BNB’s financial and operational model by providing long-term funding and targeted technical assistance in sustainable finance.

In doing so, it supports public policies and territorial dynamics in a region that is a national development priority.