Brazil has unveiled a financing initiative expected to mobilise about 39 billion reais, around seven billion US dollars, for energy transition, industrial decarbonisation and other sustainability projects.

Brazilian Development Bank (BNDES) President Aloizio Mercadante made the announcement on Thursday at COP31, the United Nations climate conference in Antalya, Türkiye, with Brazilian President Luiz Inácio Lula da Silva in attendance. The initiative brings together the state-owned BNDES, the Green Climate Fund and private investors, aiming to use public funds and multilateral financing to attract private capital into climate projects in Brazil.

Three funds at the core of the plan

The Green Climate Fund has approved 1.39 billion reais, about 250 million dollars, for the Catalytic Transition Fund Brazil, managed by Brookfield, and 278 million reais, about 50 million dollars, for the Flying Rivers Capital fund. Both funds were selected through a call for climate financing proposals launched by BNDES in 2025.

Under the initiative, BNDES will invest 1.1 billion reais, about 197.8 million dollars, in the Catalytic Transition Fund and 540 million reais, about 97.1 million dollars, in Flying Rivers. The bank had previously allocated 870 million reais, about 156.5 million dollars, to Just Climate Brasil, a fund managed by Generation Investment Management, the asset manager founded by former US Vice President Al Gore.

The three funds aim to raise a combined 13 billion reais, about 2.34 billion dollars, in equity capital. According to BNDES, each real invested as equity is expected to attract at least two additional reais in debt financing, bringing the potential financing for climate projects to about 39 billion reais.

“The approved contributions are international recognition of the quality of the projects and Brazil’s ability to mobilize climate capital,” Mercadante said. He said the Green Climate Fund’s participation strengthens the bank’s strategy of combining domestic public funds, concessional international financing and private investment to improve financing terms for large-scale decarbonisation and ecological transition projects.

Brazil’s pitch at COP31

The announcement came during Lula’s first international trip since his re-election in late October for a fourth term. At the leaders’ session in Antalya on Wednesday, Lula warned that wars, inflation and trade disputes were diverting political attention from climate change, and urged developed countries to honour their commitments to mobilise 1,300 billion dollars a year in climate finance.

Lula also told the summit that Brazil has cut deforestation in the Amazon by 71 per cent between 2022 and 2026, presenting the country’s record on forests as part of its climate credentials. Brazil hosted last year’s COP30 summit in Belém, where countries renewed calls for stronger climate action.

COP31, which runs until 20 November, brings together government representatives, multilateral bodies, financial institutions and international organisations in Antalya to discuss climate finance, emissions reductions and the transition to low-carbon economies. Finance is expected to be one of the most contested issues of the second week, with developing countries pressing for more funding to flow to projects on the ground.

For Brazil, the new initiative is designed to show that the money can be mobilised. By pairing BNDES equity with Green Climate Fund backing, the government hopes the three funds will give private investors the confidence to finance clean energy, sustainable industry and forest restoration at a far larger scale than public money alone could support.