Brazil Leads in Scaling Up Sustainable Finance – Climate Bonds Connect 2024 in São Paulo
Highlights from Climate Bonds Connect 2024 in São Paulo
Celebrating 10 years of the green bond market in Brazil and International Environment Day, the Climate Bonds Connect 2024 conference in São Paulo brought together institutional investors, bankers, leading experts in sustainable finance, policymakers, development financial institutions, and other capital market stakeholders to discuss Brazil's economic transition and its pivotal role in the global journey toward a net-zero future. The event also underscored the critical challenges and immense opportunities for Brazil and the broader Latin American Latin American and Caribbean region in the fight against climate change.
Opening Remarks: A Call to Action
The conference kicked off with compelling speeches highlighting the urgent need for transformative policies and investments to combat climate change. While significant progress has been made—such as the reduction of fossil fuel subsidies and the introduction of renewable energy policies—fossil fuels are still responsible for 80% of the global energy supply. Watch the opening remarks here.
Perspectives on Brazil’s Sustainable Market
The first session delved into the diversified structures of Brazil’s sustainable finance products and the opportunity the country has in meeting the large demand from institutional investors for sustainable instruments. Representatives from the Brazilian Ministry of Finance detailed the federal government's ecological transformation plan, emphasising its critical role in achieving the country's environmental objectives. The Brazilian Development Bank (BNDES) highlighted its enduring dedication to financing sustainable projects, particularly within the renewable energy sector. The discussion also covered the bank's initiatives to expand its loan capacity for climate crisis mitigation efforts, including the recent establishment of Fundo Clima, a $10 billion climate fund designed to attract resources and initiate sustainable projects. Watch session 1 here.
Interoperability and Global Standards
The second session tackled the importance of implementing a sustainable finance taxonomy in a country, the vital issue of making it work together with taxonomies from different jurisdictions and regulating reporting practices aligned with global standards. The panel discussed the practical challenges of aligning regional taxonomies, highlighting the need for transparency, data harmonization, and regulatory compliance to building market confidence. Vishwas Vidyaranya, from Ambire Global, emphasised the need to ensure consistency and comparability across global markets. Matias Cardomingo, who leads Brazil's national taxonomy, outlined the technical work defining key indicators and activities across various sectors. He stressed the importance of including social goals, like gender and racial equality, to address historical inequalities in Brazil. Watch session 2 here.
9th Climate Bonds Awards – Brazil's National Treasury has been recognized for the Strongest Effort in Integrated Transition Policy
Rogério Ceron, Secretary of the Brazil National Treasury, received the award from Sean Kidney and Andrés Felipe Sánchez during our #ClimateBondsCONNECT2024. Congratulations to the Brazil National Treasury for outstanding contributions to sustainable finance and climate action in Latin America and the Caribbean!
Corporate Transitions
Leonardo Gava of Climate Bonds presented the report "Navigating Corporate Transitions”. Leonardo outlined key strategies for corporate entities to effectively navigate the complex journey towards sustainability, including the integration of innovative technologies, robust stakeholder engagement, and transparent reporting practices. He stated that successful transitions require a holistic approach, balancing economic growth with environmental stewardship and social responsibility. Watch the presentation here.
Download the report here.
Brazil’s Leadership in Protecting the Amazon
Throughout the conference, attendees had a unique opportunity to hear from Indigenous leader Benki Pyãko about the critical importance of protecting the Amazon as a means of safeguarding our future. He emphasised that the health of the Amazon and our global well-being are intrinsically linked. To experience his powerful message, watch the video on Climate Bonds' YouTube channel.
Transition and resilience of Agri-foods systems
The final session focused on capital for transitioning and building resilience in agricultural systems. It was noted that Brazil is enhancing agri-food systems through technological innovation, increasing productivity without harming natural resources. Sylvia Coutinho from UBS highlighted Brazil's Government programme to recover degraded pasturelands for sustainable agriculture and livestock and Brazil's role in global food and energy security. Brazil's advancements in biofuels, especially ethanol from sugar cane, demonstrate its potential as a major supplier without competing with food production. The session also highlighted the need for catalytic capital and blended finance mechanisms to scale up projects and support rural farmers in adopting long-term sustainable practices. Watch session 5 here and closing remarks here.
The Last Word
The São Paulo conference highlighted Brazil's strategic importance in the global fight against climate change. As the event concluded, it was clear that the journey to net zero is fraught with challenges but also ripe with opportunities. Through concerted efforts in policy, finance, and innovation, Brazil is not only addressing its environmental challenges but also setting a benchmark for other nations. As we move forward, the lessons and commitments from this conference will be crucial in shaping a sustainable and resilient global economy.
Finally, we would like to thank our wonderful sponsors and supporters. We couldn’t do it without your help!
Next stop: Connect 2024 in Mumbai in September. Stay tuned!
'Till next time,
Climate Bonds
