Brazil Climate Finance Project

The development objective of the Climate Finance Project for Brazil is to support the expansion of sustainability-linked finance for climate mitigation and strengthen the private sector’s capacity to access high quality carbon credit markets in Brazil. The project comprises of two components. The first component, expanding sustainability-linked finance for mitigation aims to expand sustainability-linked finance for mitigation. It consists of following sub-components: (i) provision of sustainability-linked sub-loans to eligible companies; and (ii) establishment, capitalization, management, administration, and distribution of the climate debt fund (CDF). The second component, technical assistance (TA) will provide TA to Banco do Brasil S.A. (BB) in order to strengthen its internal capacity and processes to provide their clients with services and achieve project goals. It consists of following sub-components: (i) TA to establish the framework for credible mitigation plans and the carbon credit standards for the project; (ii) TA to support the implementation of credible mitigation plans and carbon credit creation; (iii) TA supporting carbon credit monetization.