UK PACT supports Brazil’s commitment to action on climate change and sustainable growth with nine new projects

26 Mar 2024

We are pleased to announce that the Brazil-UK PACT (Partnering for Accelerated Climate Transitions) programme launched nine new projects, in support of the Green and Inclusive Growth Partnership between the British and Brazilian governments. The UK Government has committed up to £6.8 million to finance new technical assistance projects to mobilise green investment.  

These projects are strategically aligned with Brazil’s national priorities and key policy areas, identified through consultations with government counterparts. They will support the Government of Brazil’s commitment to reducing carbon emissions in accordance with the highest end of its Nationally Determined Contribution (NDC). 

Projects under the mobilising green investment sector portfolio, operate across two intervention areas:  

  1. Supporting public financial institutions to allocate and leverage green finance resources;  
  2. Supporting measures for national and subnational governments to mobilise different sources of capital towards green projects.  

Welcoming the launch, the United Kingdom's Ambassador to Brazil, Stephanie Al-Qaq said:
"The UK and Brazil share the view that climate change aggravates inequalities and that the ecological transition brings great opportunities for economic development but must at the same time reduce poverty and be fair. The UK was the first major economy to reduce by half its emissions at the same time as growing its economy by 79%. We want a partnership based on respect, that mutually drives our national priorities and that is concrete."

What new projects is Brazil-UK PACT funding?

  • Shaping a Paris-aligned green finance strategy: led by Talanoa Institute, this project aims to enhance the Ministry of Science, Technology and Innovation’s (MCTI) capacity and competency to attract and deploy green finance that leverages decarbonisation. They hope to achieve this by clarifying green finance governance at a national level, promoting synergies between institutions, articulating a climate finance strategy and shaping Brazil’s pipeline of green finance projects.
  • Brazil Towards Lower Carbon (BTLC): also led by Talanoa Institute, is a technical assistance project targeting the integration of Climate and Gender Equality and Social Inclusion (GESI) considerations into CAIXA Econômica Federal’s overarching policies, operational systems, products, practices, and reporting mechanisms.  
  • Strengthening BNDES' Climate Finance Flows: led by Climate Policy Initiative, this project aims to provide expertise and tools to enable the National Bank for Economic and Social Development (BNDES) to adopt strong and comprehensive climate metrics, integrating the different aspects of climate management. The project’s outcomes relate to leveraging Fundo Clima’s pipeline, and providing inputs and KPIs for BNDES’ Sustainable Finance Framework, all of which will strengthen climate finance flows in Brazil.
  • Catalysing land-use climate finance for the State of Pará: also led by Climate Policy Initiative (CPI), this project aims to support the state of Pará in raising private investment to implement two principal initiatives: bioeconomy for the Amazon forest and sustainable rural development that targets deforested areas. The outcomes focus on building the capacity of the Secretariat of Environment in the state of Pará (SEMAS-PA), to measure the impact of their projects and programmes, therefore providing greater transparency and security for investors. By developing indicators and linking key actions to the state’s overall strategy for reducing emissions, the project works to mobilise finance.  
  • Mobilising green investments for Minas Gerais: led by Centro Brasil no Clima, the project's overarching goal is to support Minas Gerais (MG) in improving its climate performance and implementing the state’s Climate Action Plan (PLAC), which was developed with support from the UK Government. The aims of this project will be achieved through capacity-building, technical expertise, skills enhancement and engagement. The primary counterparts will be the MG State Secretariat for Environment and Sustainable Development (SEMAD/MG) and the MG State Development Bank (BDMG).
  • Supporting the Ecological Transformation Plan (ETP): led by AYA Institute, this project aims to provide assistance to the Brazilian Federal Government in advancing the policy framework necessary to support the Ecological Transformation Plan (ETP). The project directly seeks to equip the Ministry of Finance with essential data for identifying priority sectors and value chains, boosting public sector capabilities, increasing green investment funds from both public and private sources, and fostering a supportive political climate for the ETP across public, private, and social sectors. 
  • Expanding forest concessions in the Brazilian Amazon: led by IMAFLORA, this project aims to promote the growth of forest concessions in the Brazilian Amazon, offering an alternative to the irregular greenhouse gas emissions resulting from deforestation and rainforest degradation, while also serving as a catalyst for social inclusion and transformative change. Working with the Brazilian Forest Service (BFS), it will improve regulations on the concessions agenda.  
  • Accelerating green incentives in rural credits: also led by IMAFLORA, this project aims to accelerate the transition to low-emission agriculture through rural credit and science-based targets. Imaflora will develop systems and tools to enable policymakers to direct rural credit and incentives towards greater additionality; and to enable banks to set and track decarbonisation trajectories effectively.  
  • Bridging the gap between planning and implementation: led by The Climate Group, this project seeks to work in three Brazilian sub-national states (Mato Grosso, Pernambuco and Sao Paulo), to build green finance capacity and knowledge within the climate finance landscape. It will establish and operationalise financial task-forces to catalyse action, while also bringing together investors and states to create opportunities around a pipeline of bankable projects.  

The lead organisations and partners responsible for implementing these projects are:

Lead organisation Government counterparts Sector
Talanoa Institute  Ministry of Science, Technology and Innovation’s (MCTI)  Mobilising green investment
Talanoa Institute  Caixa Econômica Federal   Mobilising green investment
Climate Policy Initiative  National Bank for Economic and Social Development (BNDES)  Mobilising green investment
Climate Policy Initiative  Secretariat of Environment of the state of Pará (SEMAS-PA)  Mobilising green investment
Centro Brasil no Clima  MG State Secretariat for Environment and Sustainable Development (SEMAD/MG) and MG State Development Bank (BDMG) Mobilising green investment
AYA Institute  Ministry of Finance (MF)  Mobilising green investment
IMAFLORA  Brazilian Forest Service (BFS), autarchy of the Ministry of Environment and Climate Change (MMA)   Mobilising green investment
IMAFLORA  Ministry of Agrarian Development (MDA), Ministry of Finance (MF), Banco do Brasil (BB)   Mobilising green investment
The Climate Group Secretariat for Environment of Mato Grosso, Pernambuco and São Paulo states  Mobilising green investment


Read more about the portfolio of projects funded under Brazil-UK PACT here