Brazil to receive $250 mil in international funding for industrial decarbonization

Brazil has been selected to develop investment plans worth $250 million (Real 1.3 billion) to support the country's industrial decarbonization program. The plans will be submitted to the Climate Investment Fund (CIF) for endorsement, the country's Development, Industry, Trade and Services Ministry (MDIC) said June 16.

Brazil's application was selected on June 11 by CIF's trust fund committee, following a technical evaluation by an independent group of experts.

According to the MDIC, the proposal outlined a strategy to accelerate the transition of emission-intensive industrial sectors, such as cement, steel, aluminum, chemicals and fertilizers, while fostering the development of low-carbon technologies. The emphasis was on innovation, promoting a circular economy and generating green jobs.

In the coming months, Brazil will submit its investment plan to the CIF committee for approval, outlining priority projects, financial instruments and private capital mobilization strategies.

The CIF, a global initiative that provides financial resources to assist developing countries in implementing climate change solutions, announced June 13 that Brazil, Egypt, Mexico, Namibia, South Africa, Turkey and Uzbekistan were selected to participate in its $1 billion investment program focused on industry decarbonization.

Supports policy incentives

The MDIC said that the proposal aligns with Mission 5 of New Industry Brazil, launched in January 2024 to boost the national industry by 2033 through credits and subsidies.

Mission 5, titled "Bioeconomy, Decarbonization, and Energy Transition and Security to Ensure Resources for Future Generations," encompasses specific measures to enhance the country's circular economy practices. This includes the National Circular Economy Strategy, which has led to the approval of the National Circular Economy Plan.

Participants in Brazil's recycled polymer markets have welcomed recent policy developments, but they emphasize that a confusing and slow-moving regulatory landscape remains a major barrier to improving plastic circularity.

There is a strong demand for measures to address inadequate scrap collection to enhance the pricing and quality of recycled materials compared to virgin ones, which has been particularly challenging in the recycled polyethylene terephthalate market.

Platts, part of S&P Global Energy, Platts last assessed post-consumer PET clear bottle bales (95/5) at Real 4.00/kg DDP Sao Paulo on June 13, up Real 20 cents/kg from June 9.