The Brazilian Development Bank (BNDES) and the European Union (EU) will strengthen partnerships focused on supporting sustainable development and investments in Brazil. With this objective, the bank’s president, Aloizio Mercadante, and the European Union’s Commissioner for International Partnerships, Jutta Urpilainen, signed a letter of intent during the 4th Brazil-European Union Forum, held at the BNDES headquarters.
The letter constitutes another step in the process of formalizing a donation from the European Union worth 20 million euros, or around R$120 million, to the Amazon Fund.
For Mercadante, this is a very important signal because it represents a contribution from all 27 countries that are part of the European Union. “It has a greater significance, it gives a lot of support and credibility to the Amazon Fund, which has consolidated itself through transparent, efficient and responsible management, and by responding to one of the main demands, which is the dramatic climate crisis on the planet. We have reduced deforestation by 50%; that is why these contributions are being strengthened,” he stated.
Commissioner Jutta Urpilainen said the European Commission was pleased to join EU member states, which recently announced contributions to the fund. “Our commitment will support the efforts of the Brazilian government and will enable the acceleration of the fight against deforestation.”
Mercadante highlighted the importance of preserving the Amazon, an area that is home to 25% of the planet’s tropical forest cover and is home to a population of approximately 29 million people. “In addition to being the largest tropical forest in existence, the Amazon is crucial to climate balance and these resources also enable connectivity among riverside populations, indigenous communities and quilombolas living in the Amazon.”
Record investment
The Amazon Fund currently has resources totaling R$3.9 billion. Last year, the fund broke a record for investments in new actions, after four years of being inactive, and today supports 114 initiatives, ranging from the Restoration Arch (the largest native forest restoration project) to strengthening the Fire Department in fighting fires, in addition to combating organized crime in the region.
The resources allocated to the projects are non-refundable. Around 240,000 people will benefit from sustainable productive activities, the BNDES press office reported.
Aloizio Mercadante also announced that negotiations with the European Investment Bank for financing, “under very favourable conditions”, of 300 million euros, also linked to the energy transition, green economy and digital transition, have been concluded.
“It is a very important loan. We have already concluded the sovereign guarantee with the Ministry of Finance, and now it will go to the Federal Senate. As soon as it is approved by the committee, the funds will be released. It is more money for our economy,” said Mercadante.
Germany
The German government and BNDES announced the release of approximately R$88 million (15 million euros) to the Amazon Fund, through the state investment and development bank KfW. In addition to increasing the resources allocated to the fund, Germany becomes Brazil’s first partner country to join the Floresta Viva Program, an initiative led by BNDES for the ecological restoration of Brazilian biomes.
For the Amazon Fund, this is the second installment of the donation contracted at the end of December 2022, shortly after the presidential elections in Brazil, in an initiative that marked the resumption of international support for the fund. The new installment adds to approximately R$107 million (20 million euros) that were released by Germany for the fund in October 2023.
The release of R$88 million is the latest contribution made by the German government, the second largest donor to the Amazon Fund, with around R$380 million in donations at historical values, which exceed R$500 million when converted to the current exchange rate.
The German government’s resources are in addition to the contributions of the other donors to the Amazon Fund, which are Norway, Petrobras, Switzerland, the United States and Japan, in addition to Germany itself, and those yet to be disbursed by the United Kingdom. These resources reinforce the actions of the Amazon Fund, currently considered the largest instrument for reducing emissions resulting from deforestation and forest degradation (REDD+) in the world.
Living Forest
For the Floresta Viva Program, BNDES will also receive resources from the German Federal Ministry for Economic Cooperation and Development (BMZ), through KfW, in the amount of 15 million euros, which will be allocated to the execution of projects to increase vegetation cover with native species in all Brazilian biomes, from seed collection, through forest nurseries to planting.
The program has already launched the first notices referring to the Mangrove, Cerrado, Pantanal and Atlantic Forest biomes.
