The National Bank for Economic and Social Development (BNDES) and the World Bank signed a memorandum of understanding on the climate agenda. The two institutions intend to promote the exchange of information and experiences to develop a joint agenda on the climate, carbon market and biodiversity in the country.
In a statement, the BNDES informed that tools to assess risks to the climate and biodiversity will also be discussed. A system for evaluating companies will also be created, based on ESG practices, an acronym for environmental, social and governance practices.
Carbon dioxide
Among the planned actions are the production of articles and the promotion of workshops on the regulated and voluntary carbon markets, when an entrepreneur who emits carbon dioxide finances compensatory measures, such as the reforestation of degraded areas. The two banks will also study financial instruments to support climate and ESG projects in Brazil.
According to the BNDES, the cooperation will allow the development bank to improve the processes of financing environmental, climate, carbon and biodiversity projects, in line with the best international practices. With $26 billion awarded in climate finance in 2021 alone, the World Bank is now the largest funder in this area for underdeveloped and developing countries. The international body works to align financial flows with the goals of the Paris Agreement by 2025.
