Upload
asociacion-latinoamericana-de-instituciones-financieras-para-el-desarrollo
View
462
Download
0
Tags:
Embed Size (px)
DESCRIPTION
Sesión V: El rol de los bancos de desarrollo en la inversión para la mitigación: retos para el “scaling up” del financiamiento
Citation preview
Mitigation of Climate Change and Environmental Sustainability: The Role of Development Banks in both
dimensions
Bogotá - November 2010
Section V – The role played by development banks: paths to ‘scaling up’ the investment for mitigation
Section V – The role played by development banks: paths to ‘scaling up’ the investment for mitigation
1. Brazil
2. BNDES
3. Environmental division
4. Environmental Policies and Studies Department
5. Green Financing Department
6. Amazon Fund Department
7. A broad approach
AGENDA
Source: IBGE, 2009
Energy Supply Breakdown
• 46% renewable sources
• World average: 13%
• Developed countries average: 6%
Natural Resources
• Largest tropical forest
• One of the largest biodiversity
• Largest supply of fresh water
• High agricultural productivity/potential
Major contribution to face climate change: to avoid deforestation
General Features
Key Figures
Total area 8.5 million km2
Population 192 million
GDP (USD) 1.6 trillion
Per capita GDP (PPP) (USD) 10,200
..
• Successful management of the crisis
• Brazil has resumed growth trend at 5% a year on average on the next 5 years...
Brazil: GDP Annual Growth Rate (%)Brazil: GDP Annual Growth Rate (%)
Economic growth is on!
Economic growth is on!
Source:Miinistry of Fiinance
Context
• Investment and savings to strengthen economic growth
• Infrastructure
• Education
• Social mobility / income distribution
• Innovation and skill capabilities to keep pace with the industrial/technical “green” revolution
• New habits and routines related to sustainability awareness:
• consumer’s behavior
• proactive entrepreneurial strategies
NE
W C
ON
CE
PT
ION Developing
countries might lose significant
improvements obtained in recent years and might be
subject to new “sustainable” constraints
ATTENTION
Brazilian challenges
... But Brazil still faces an essential challenge:
to evolve from growth to sustainable development
AGENDA
1. Brazil
2. BNDES
3. Environmental division
4. Environmental Policies and Studies Department
5. Green Financing Department
6. Amazon Fund Department
7. A broad approach
• Established in 1952
• Main provider of long-term financing in Brazil
• Brazilian Export Bank
• 100% state-owned company under private law
• 2250 employees
• Instruments
o Direct & Indirect credit operation
o Project finance
o Equity investments
o Non-refundable credit lines
o Guarantee Fund for MSME
The role played by BNDES
Assets Equity Disbursement
World Bank 275.4 40.0 18.6
BNDES 222.0 15.9 72.2
IDB 72.5 19.4 7.1
CAF 14.3 4.6 5.8
Source: BNDES (Dec/09), World Bank (Jun/09), IDB y CAF (Dec/08).
(*) World Bank as of June 30th.
Non Performing Loans 2009: 0,20 (%)
Development Bank
Scale and Scope Matters (US$ Billion)
Today: Growing demand for a broad and active approach
Evolution of environmental approach
• BNDES’ first environmental unit was created in 1989.
• Focus: • To develop knowledge
• To provide technical support for the operational Areas
• To propose the creation of programs and credit lines
• To interact with other institutions
• Since the 80’s: environmental programs and credit lines
• Since the 90’s: environmental procedures
AGENDA
1. Brazil
2. BNDES
3. Environmental division
4. Environmental Policies and Studies Department
5. Green Financing Department
6. Amazon Fund Department
7. A broad approach
Drafting of environmental policies
and provision of technical support during
all phases of project analysis;
Innovation and Native Forests non-refundable
financing
Development and execution of financial
instruments and strategies to encourage
sustainable environmental initiatives
Verification of adherence to environmental
legislation and analysis of the legal aspects of
the divisions’ operations
Management of
the Amazon Fund
DEPUTYMANAGEMENT
Advisors Advisors
Department ofEnvironmental
Policies and Studies DEMAM
Green Financing Department
DEOPE
Amazon Fund Department
DEFAM
Legal Department
JUAMA
Structure of the Environmental Division
AGENDA
1. Brazil
2. BNDES
3. Environmental division
4. Environmental Policies and Studies Department
5. Green Financing Department
6. Amazon Fund Department
7. A broad approach
Environmental Policies and Studies
• BNDES participation in the discussion and implementation of the Brazilian environmental policies
• Technical support to the operational areas of BNDES
• Technical Training of Employees
• Coordination and Preparation of Studies on specific subjects and sectors
• Mapping out socioenvironmental best practices
• Green Accounting Project
• Non-reimbursable funding
• Technology Fund – FUNTEC
• BNDES Mata Atlântica (Atlantic Forest Iniciative)
The Atlantic Forest
Atlantic Forest
BNDES Initiative
Smaller than the Smaller than the Amazon, but similar Amazon, but similar range of biodiversityrange of biodiversity
Originally 330 million Originally 330 million acres acres
7% remaining in very 7% remaining in very good conservation statusgood conservation status
60% of Brazil’s 60% of Brazil’s populationpopulation
80% of the GDP 80% of the GDP
Source: The Atlantic Forest Restoration PactSource: The Atlantic Forest Restoration Pact
Non-refundable financial resources from the BNDES Social Fund, for the reforesting of areas with native species.
• 55 proposals
• 27 projects selected
The Iniciative
• Job opportunities
• Income, training and education to residents of local communities
Creating jobs and developing local economies
Atlantic Forest BNDES Initiative
Original areaOriginal areaTodayToday
AGENDA
1. Brazil
2. BNDES
3. Environmental division
4. Environmental Policies and Studies Department
5. Green Financing Department
6. Amazon Fund Department
7. A broad approach
Investiments (US$ Million)
Direct Operations
Sectors directly related to the environment or traditional sectors with technological innovations optimizing the consumption of natural resources
•Forest assets
•Chemical industry
•Renewable energies and green technology
•Biotechnology
•Sanitation and waste
Private Equity Funds
• CDM Fund
• Sanitation and Environment Fund
• Forestry Fund
• Amazon Productive Activities Fund
Green Financing Department
Equity
227 828TOTALBNDES
Forestry
SanitationEnvironment
CDM
• Support Program for Energy Efficiency: Support for projects contributing to the energy economy, raising the global efficiency of energy systems or fostering the replacement of fossil fuels with renewable sources.
• Environment Line: Support for environmental projects fostering the sustainable development of the country:
• sanitation; organization of the use of natural resources; recovery and conservation of the ecosystems and biodiversity; MDL; recovery of environmental damage.
• BNDES Florestal: Support for reforesting, conservation and forest recovery of degraded or converted areas, and for the sustainable use of native areas by means of forest management.
• Forest Replenishment: Support the regularization of environmental damage in rural properties working with agribusiness, and contribute to the restoration and appreciation of native forests and remaining ecosystems.
Green Financing Department
Fixed Income
Green Financing Department
Green Securities and Products
• Carbon Efficient Index (ICO2)
• Exchange-Traded Fund (ETF)
• Development of market devices to encourage “good” practices in agricultural
production (securitization of green receivables)
• Development of mechanism to auction expectations to reduce emissions
(securitization of carbon credits)
• Development of mechanism to finance the production chain of large companies
with “good” environmental practices (securitization of sustainable receivables)
• Development of a carbon market in Brazil (following the European Emission
Trading Scheme)
Recalculation based on GEE emissions
Increased participation (+ 2%)
Increased participation (+ 3%)
Reduced participation (- 3%)
Reduced participation (- 2%)
38 %
17 %
13 %
32 %
40 %
14%
16 %
30 %
The Carbon Efficient IndexCalculated on companies’ Greenhouse gas emissions
• Based on Brazilian IBrX-50 stock index
• Weight reduction in the index of stocks with the highest [tCO2e emission/R$MM of revenue] for each sector
• Companies’ participation is voluntary
Green Financing Department
“Original’ Index
Participation
“Carbon Efficient” Index
New participation
Expected impact
•Bring transparency to the market regarding company emissions
•Encourage the dissemination and adoption of policies to reduce emissions in companies
•Anticipate the competitive environment in a low carbon economy
•Create investment opportunities for investors sensitive to environmental issues
Previous Situation of IBrX-50 Companies
Of companies that report data on emissions (June/2009)
Source: Websites, annual reports and sustainability reports.Source: Websites, annual reports and sustainability reports.
AGENDA
1. Brazil
2. BNDES
3. Environmental division
4. Environmental Policies and Studies Department
5. Green Financing Department
6. Amazon Fund Department
7. A broad approach
The Amazon Fund Department
The world sponsors it. Brazil tends to it. We all win.
The Amazon forest
The Amazon Region
• The largest tropical rainforest on the planet
• Some 7 million km2 stretched across nine countries in South America:
• Bolivia
• Ecuador
• Venezuela
• Colombia
• Peru
• Suriname
• Guiana
• French Guiana
• Brazil
Some 60% of the
Amazon forest is in
Brazilian territory.
82% still
forested
Brazilian Amazon
in about 30 years
18% of
deforestation
Brazilian Amazon
The Brazilian government’s original
proposal presented in
Bali, Indonesia, in
Dec/2007, to create
a mechanism to
support efforts in
reducing
deforestation in the
Amazon.
The Amazon Fund Context and History
• Promoting a consistent and continuous reduction in the rate of deforestation in Brazil;
• Transforming the reduction of emissions from deforestation into a system that finances the conservation and sustainable use of forests;
• Demonstrating the feasibility of the incentive mechanisms to reduce emissions from deforestation;
• and making the forest more valuable than the alternative use of the land.
Funds raised are earmarked for non-reimbursable funding for projects aimed at:
The Amazon Fund Goals
Guideline and Criteria/Determine factors
Projects must be coherent with:
PAS Sustainable Amazon Plan
PPCDAM Action Plan for Prevention and Control of Deforestation in the Legal Amazon
STATE PLANS State Plans to Combat Deforestation
COFA Guidelines and Criteria
Guidelines and criteria established by the Guidance Committee of the Amazon Fund
The BNDES’ Operational Policies BNDES’ Operational Policies for the Amazon Fund
• First donation: Norway
• The Norwegian Government announced that it will provide
the Amazon Fund with US$ 1 billion over the next four to
seven years.o2009: US$ 110MM
o2010: US$ 110MM
o2011: at least US$ 110MM
Fundraising Kickoff
Approved Projects in 2009
• Projects deal with: o Protected areas
o Enviromental’s services payments to communities
o Enviromental rural producers registrations
o Monitoring
o Stimulation to sustainable activities
o Recover of degraded areas
o Familar rural production
• Time to implementation varies 3-5 years
• Total project’s areas equivalents to Portugal, Denmark, Austria
Total of BRL 70,3 million = USD 40,4 million
IMAZON – AMAZON INSTITUTE OF PEOPLE AND THE ENVIRONMENTAMAZON FUND US$ 5.5 million
Approved Projects in 2009
TNC – THE NATURE CONSERVANCY (BRAZIL)
AMAZON FUND US$ 9.1 million
IOV – OURO VERDE INSTITUTEAMAZON FUND US$ 3.1 million
ARPA – PROTECTED AMAZON AREASAMAZON FUND US$ 11.4 million
FAS – AMAZONAS SUSTAINABLE FOUNDATIONAMAZON FUND US$ 11 million
Projects deal with: Institutional Development
Approved Projects in 2010
Alta Floresta Municipality(Mato Grosso State)
US$ 1.5 million
Amazonas State US$ 11.4 million
Pará StateEnvironment Unit
US$ 9 million
Total of BRL 39,0 million = USD 22,4 million
The Amazon Fund
AGENDA
1. Brazil
2. BNDES
3. Environmental division
4. Environmental Policies and Studies Department
5. Green Financing Department
6. Amazon Fund Department
7. A broad approach
Conclusion
Thank You!
Claudia Nessi Zonenschain
www.bndes.gov.br
Thank You!
Claudia Nessi Zonenschain
www.bndes.gov.br
Conclusion