1. Themes
  2. Private Finance
  3. Transition Finance

Transition Finance

The transition to low-carbon energy sources will require significant investment, including from the private sector, that speaks to the unique context and needs of Brazil

2030 Goals

01

Establish standardized transitional finance frameworks and disclosure requirements to guide private investments toward verifiable low-carbon outcomes, with methodologies adapted to Brazil’s energy, industrial, and agricultural context.

02

Increase private sector issuance of sustainability-linked and transition instruments, making them a core funding mechanism for companies shifting to low-emission and clean energy operations.

03

Strengthen public–private collaboration to scale investment platforms and risk-sharing mechanisms that unlock private capital for hard-to-finance transition projects in priority sectors.

04

Develop clear national and internationally aligned procedures to guide safe siting of energy plants, especially wind projects, while facilitating compliance and preventing negative social and environmental impacts on nearby communities.

Status

Moderate Progress

Brazil is using fiscal and regulatory tools to reduce financing costs and expand capital mobilization for the energy transition, focusing on tax incentives and bond markets to channel investment into low-carbon sectors.

Incentivized sustainability bonds provide tax benefits to investors, lowering the cost of capital for green projects. Green debentures allow companies to issue debt for renewable energy and infrastructure with favorable conditions.

Renewable sources supplied nearly 87% of electricity in 2023. Hydropower remains dominant, while wind reached around 12% and solar surpassed 10%, showing rapid diversification of the energy mix.

The Glasgow Financial Alliance for Net Zero–Brazil initiatives and domestic research coalitions are mobilizing investors to finance large-scale clean energy and transition pipelines.

Leading Actors

Cooperation is required between these actors and audiences to drive progress foward in Transition Finance.

Private Financial Institutions

Itaú BBA

Private Financial Institutions

Bradesco

Supportive Stakeholders

Suzano

Supportive Stakeholders

Klabin

Private Financial Institutions

Vale

Public Financial Institutions

Brazilian Development Bank (BNDES)

Public Financial Institutions

Caixa Econômica Federal (CEF)

International Organizations

Glasgow Financial Alliance for Net Zero (GFANZ)

International Organizations

Organisation for Economic Co-operation and Development (OECD)

Ministries

Ministry of Finance (MF)

Ministries

Ministry of Environment and Climate Change (MMA)

Ministries

Ministry of Mines and Energy (MME)

Ministries

Ministry of Industry, Commerce and Services (MDIC)

Other Governmental Organizations

National Treasury (STN)

Other Governmental Organizations

Federal Court of Accounts (TCU)

Other Governmental Organizations

Secretariat of Economic Policy (SPE/MF)

Other Governmental Organizations

Executive Office of the President or Civil House

Supportive Stakeholders

Instituto do Clima e Sociedade (iCS)

Supportive Stakeholders

Observatório do Clima

Supportive Stakeholders

Instituto Escolhas

Supportive Stakeholders

Centro Brasil do Clima (CBC)

Supportive Stakeholders

Centro Brasileiro de Relações Internacionais (CEBRI)

Key Milestones

Showcasing the key reform milestones for Transition Finance that have been addressed at global events.

View Roadmap

Brazil

Brazilian Sustainable Taxonomy announcement

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  • Monetary Policy, Financial Regulation, and Supervision

    Finalize GRSAC–ISSB/CBPS convergence and taxonomy tagging so climate data reliably feeds pricing, indices, and benchmarks used by private investors.

  • Taxonomies, Standardization, and Disclosure

    Build integrated MRV systems by consolidating fragmented data sources across agriculture, forestry, and rural finance, enabling scalable and verifiable application of taxonomy criteria. Strengthen institutional capacity among regulators and financial institutions to implement MRV aligned with CBPS (Socio-environmental Best Practice Guidelines) standards and integrate climate data into internal reporting. Ensure interoperability of Brazil’s taxonomy with international systems while incorporating national social and environmental priorities into criteria design and governance. Establish strong enforcement and disclosure linkages to prevent greenwashing and uphold the credibility of taxonomy-aligned sustainable finance.

India (city TBC)

18th BRICS Summit - BRICS Leaders’ Summit

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  • Monetary Policy, Financial Regulation, and Supervision

    Expand climate scenario analysis and bottom-up stress tests to influence IInternal Capital Adequacy Assessment Process, governance remediation, and supervisory dialogue across major banks.

  • Project Preparation and Business Development Facilities

    Scale subnational support: expand city/state access to FEP/PSP/CFF/FELICITY for sanitation, lighting, solid waste-to-energy, distributed solar, and NBS flood control.

New York, US

Global Innovation Lab for Climate Finance Endorsement Meeting

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  • Transition Finance

    Deploy MDB- and DFI-backed blended finance structures focused on early-stage renewable technologies and grid modernization.

  • Project Preparation and Business Development Facilities

    Deepen investor interfaces: public data rooms, template contracts, and regular market-soundings to accelerate private due diligence and lower bid uncertainty

Yerevan, Armenia

COP17 - UN Biodiversity Conference

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  • Transition Finance

    Mobilize large-scale private investment in low-carbon energy through structured deals using incentivized bonds, sustainability-linked instruments, and blended finance solutions.

  • Brazil Climate and Ecological Transformation Investment Platform

    Strengthen institutional coordination among federal ministries, subnational actors, and international partners to align strategies and mobilization efforts

Learn More

Publications and educational material to deepen understanding of Transition Finance.

Green Infrastructure Investment Opportunities

Transition Finance

Report identifying investment opportunities in Brazilian green infrastructure sectors.

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The Solar PV Revolution in Brazil

Transition Finance

Study on the expansion of solar PV in Brazil, assessing opportunities and financing models.

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