Good morning! Today, we talk about efforts by BNDES, Brazil’s development bank, to go green. How inflation impacts different income brackets. And regulatory innovation on highways.
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Development bank BNDES wants to decarbonize its portfolio
The Brazilian National Development Bank (BNDES) committed itself to reaching carbon neutrality by 2050. To reach this, its biggest challenge is not to decarbonize its direct operations but rather its BRL 450 billion (USD 84.6 billion) loan portfolio and its BRL 70 billion stakes in multiple companies. It also plans to offer loans to help companies reach net-zero status.
Why it matters. The BNDES is present in every Brazilian region and is one of the country’s biggest financiers — and is state-controlled. Its pledges to environmental goals can induce companies into more sustainable practices.
Blueprint. While setting specific strategies into motion will be a task for the next government, at the UN Climate Conference (COP27) in Sharm el-Sheikh, Egypt, the bank presented a 47-page document in which it details a cross-sectoral policy that includes “engagement from...