BNDES expands support to states and municipalities for sustainable urban projects.
The bank is allocating billions to credit and structuring sustainable projects, prioritizing mobility, innovation, and adaptation to climate change.
247 - The Brazilian National Bank for Economic and Social Development (BNDES) will reinforce its support for cities and states in structuring projects that address the country's urban and climate challenges. The announcement was made by the bank's Director of Planning and Institutional Relations, Nelson Barbosa, during the opening of the international forum. Financial Innovation for Cities: Structuring Projects for Resilient and Sustainable Urban Development, which started this Tuesday (26), in Rio de Janeiro.
Organized by BNDES and the Inter-American Development Bank (IDB), with support from the Climate and Society Institute and Rio Climate Action Week, the event brings together representatives from governments, multilateral organizations, and experts to discuss financial and institutional alternatives for transforming urban infrastructure and making it more resilient to climate change.
In his speech, Barbosa highlighted the obstacles that hinder the development of projects at the local level. "Often, the fixed cost of undertaking projects is too high for municipalities or state governments," he stated. He also mentioned the political disagreements that can impede the progress of metropolitan initiatives. "It is necessary for an agent to help coordinate these projects. And the BNDES's project structuring area has been strongly involved in this, with more than 200 projects and growing interest in the urban sector," he concluded.
The director detailed that the bank's strategy is organized around three pillars: structuring projects, direct investments in companies, and expanding credit lines focused on urban sustainability. In the area of direct investments alone, BNDES will allocate approximately R$ 10 billion to initiatives related to city development, creating opportunities for startups working in digitalization, energy efficiency, and new urban planning models.
Regarding credit, Barbosa cited the Climate Fund and the Social Infrastructure Investment Fund, which together already have R$ 30 billion available to finance projects in clean transportation, civil defense, health, education, and public safety. According to him, these two funds should double in size next year, reaching R$ 60 billion. "One of the Climate Fund's main drivers is urban mobility, with rail transport projects and the electrification of the bus fleet, with incentivized interest rates," he highlighted.
Another ongoing program is the Resilient CitiesIn this document, BNDES maps investments necessary for urban adaptation in the face of the climate crisis. Barbosa recalled the example of Rio Grande do Sul and cited projects already underway in Rio de Janeiro and Recife, including initiatives for the reuse of urban assets. In partnership with the Ministry of Cities, the bank also presented the National Urban Mobility Study, which foresees the expansion of the public transport network by 2.500 kilometers over the next decade.
The head of the IDB's representation in Brazil, Annette Killmer, reinforced the importance of strengthening urban infrastructure to withstand extreme weather events. "This is an extremely important agenda for development institutions," she said. The IDB already invests R$ 5 billion in the country in housing, transportation, mobility, water, sanitation, and public safety. For her, it is essential to create innovative financial models that expand cooperation between governments and the private sector.
The United Nations Special Envoy for Financing Sustainable Development, Mahmoud Mohieldin, drew attention to the urgency of adaptations. According to him, heat waves in large cities could more than triple by 2050. "Climate initiative actions cannot be isolated, but must be integrated as cross-cutting priorities across all government functions," he argued. Mohieldin also suggested new financing mechanisms, such as the issuance of municipal green bonds.
With two days of programming, the forum seeks to discuss innovations in financing and managing sustainable urban projects, bringing together public managers, development banks, private companies, and social organizations. Among the highlights of the agenda is the participation of the co-founder of the Central Única das Favelas (CUFA), Preto Zezé, in a panel on inclusive cities.