| Implementing partner: Centro Brasil no Clima |
| Consortium partner: WayCarbon |
| Implementation period: January 2025 - December 2025 |
| Sector: Finance |
The project has the objective of supporting Minas Gerais in accelerating the implementation of the Climate Action Plan (PLAC) to meet the Race to Zero commitments, strengthening its capacity to monitor, report, and evaluate actions and targets of the plan, while enhancing its financing prospects by identifying opportunities and establishing means to access funding sources. The two main beneficiaries are the Minas Gerais State Secretariat for Environment and Sustainable Development (SEMAD/MG) and the Minas Gerais Development Bank (BDMG).
Minas Gerais is one of Brazil's main states in terms of both economic activity and greenhouse gas (GHG) emissions, as well as vulnerability to climate change. It is also possibly the most advanced state in the country regarding the climate change agenda. Its climate plan includes 199 targets aimed at both mitigation and adaptation, while also promoting a just transition. BDMG is the main state development bank in the country and finances various climate-related actions. The bank has a climate strategy and seeks to reduce the emissions of its portfolio while simultaneously increasing support for actions that reduce emissions.
During the first year of the project (February to December 2024), the outputs included recommendations to enhance the "bankability" of the climate project portfolio, training for improved climate management (including the development of the MRV tool), tools to support BDMG’s climate strategy, recommendations to strengthen BDMG’s role in mobilizing green investments, and engagement and networking to mobilize green investments.
In 2025, the project will focus on work with SEMAD, particularly on improving and expanding the MRV tool that was designed and delivered in the first year of the project. The updated tool will incorporate a broader set of targets from PLAC-MG and enhance usability for government stakeholders responsible for monitoring these targets, as well as for the general public who will have access to the tool.
The collaboration with BDMG will concentrate on implementing its climate strategy by expanding the application of carbon accountability tools. This will include developing an improved version of the avoided emissions calculator, featuring additional sectors, new functionalities, and better overall usability.
Additionally, from a carbon accountability perspective, we will develop a GHG emissions inventory tool tailored for small and medium-sized enterprises within BDMG’s portfolio.
From the standpoint of climate risk management, the second year of the project will involve creating a methodology to estimate the transition risks faced by BDMG’s clients, based on financed emissions metrics.
