On the sidelines of the 78th United Nations General Assembly, the World Bank and Banco do Brasil signed a memorandum of understanding (MoU) under which the institutions agreed to cooperate to identify sustainable solutions for the Brazilian bioeconomy, forest and land restoration, and sustainable, low-carbon agriculture, with a special focus on the Amazon and Cerrado biomes. These efforts aim to support, among others, Brazil’s national plan to combat deforestation in the Amazon.
This MoU strengthens the collaboration of both institutions. Last year, the World Bank and Banco do Brasil announced an Innovative Climate Finance Solution which adopted, for the first time, a sustainability-linked lending approach. This US$500 million project aims to expand sustainability-linked finance and strengthen the private sector’s capacity to access carbon credit markets.
“Our financial and technical collaboration with Banco do Brasil on all these fronts are clear examples of innovation and implementation at scale, supporting the World Bank’s strategy of helping our clients in their climate and resilience agenda. The benefits from enhanced agricultural productivity, reducing greenhouse gas emissions and abating pressure on the critical forest ecosystems of the Amazon and the Cerrado accrue to Brazil and the whole planet,” said World Bank Vice President for Latin America and the Caribbean Carlos Felipe Jaramillo.
“We are promoting fundraising in sustainable businesses, including the entire carbon credit chain, in addition to our extensive work in the capital markets and in Brazilian agribusiness and family farming. Being here in New York, establishing partnerships and raising funds for the purpose of environmental preservation, has generated relevant business, with a positive impact on the lives of Brazilians, especially those in the Amazon region," said Banco do Brasil President Tarciana Medeiros.
The institutions highlighted key areas of collaboration, including on technical assistance and identification of investment opportunities for:
- Developing economic activities that help preserve the ecosystem, such as green infrastructure, sustainable timber management, agroforestry, and restoration of degraded pastures.
- Measuring, reporting and verification, and options for monetization of greenhouse gas emission reductions.
The World Bank has been a strong partner in promoting sustainability in Brazil, discussing how economic development and preservation can go hand-in-hand in the Amazon, and help Brazil meet its climate goals. It is also part of the Green Coalition launched in August 2023 to support sustainable development in the Amazon region.
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