Brazil’s development bank to invest in Belém ahead of likely COP hosting duties

Aloizio Mercadante, chairman of Brazil’s federal development bank BNDES, on Friday announced a BRL 5 billion (USD 1 billion) “credit and investment package” for the city of Belém as it prepares to host the UN climate change conference in late 2025.

Belém, the second largest city in Brazil’s Amazon region, is a virtual certainty to host the United Nations Framework Convention on Climate Change’s Conference of Parties (COP) in 2025, although an official decision has not yet been announced.

The package is expected to include revenue from several sources, including the bank’s Climate Fund and Amazon Fund. “All projects that contribute to reducing deforestation can be included [in the Amazon Fund],” Mr. Mercadante said at a press conference. The Amazon Fund is mainly sponsored by Norway, and this year the U.S. and British governments separately pledged to participate.

Mr. Mercadante made the announcement with Pará Governor Helder Barbalho, a close ally of President Luiz Inácio Lula da Silva, at his side. No representative from the Belém city hall was present. Mr. Mercadante said the BNDES would work with the private sector and both state and city governments in the process.

Mr. Barbalho said that Pará will reduce its greenhouse gas emissions as part of its goal to become a carbon-neutral state. Pará has led the Amazon deforestation ranking for more than 15 consecutive years, even though the neighboring state Amazonas is 25 percent larger.

“We are very motivated to make Belém into the first collective transportation [success] case using a renewable energy matrix,” said Mr. Barbalho. Credits will be used to replace old buses and also to increase the number of hotel beds.

As The Brazilian Report first explained in February, Belém is far from capable of hosting major international events, with less than half the number of hotel beds as Sharm el-Sheikh, the Egyptian city that hosted the COP in 2022.

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