Paving the way to unlock finance for greening hard-to-abate sectors in Brazil

The project seeks to tackle the challenges of decarbonising critical industries in Brazil—steel and cement —by catalysing financing and aligning them with decarbonisation strategies. These industries are essential to Brazil's economy but face significant barriers, including high capital costs, technological challenges, and limited access to finance. This project is grounded in Brazil’s National Industrial Decarbonisation Policy, which outlines a strategic framework for reducing industrial emissions. However, progress in hard-to-abate sectors has been limited, primarily due to a lack of adequate financial instruments and insufficient policy coordination.

With that, this project also aims to catalyse financing for the decarbonisation of hard-to-abate industries critical to Brazil such as steel and cement including their supply chain and small and medium enterprises (SMEs). This will be achieved by i) identifying necessary actions for corporations to align with the National Industrial Decarbonisation Policy; ii) enabling credit access for corporations and supporting enablers; and iii) creating incentives for the industry to adhere to decarbonisation pathways through policy instruments linked to the Brazil-UK Industrial Decarbonisation Hub’s priorities.