WASHINGTON, D.C., September 15, 2026 — The World Bank Group is supporting Brazil in a landmark effort to decarbonize high value-added and energy-intensive industries by helping the country translate its renewable energy matrix into a competitive advantage for industrialization and employment opportunities. Implemented in partnership with the Banco Nacional de Desenvolvimento Econômico e Social (BNDES), the initiative targets key industrial and energy value chains, including steel, cement, chemicals, aluminum, and low-carbon fuels. It is designed to accelerate the deployment of new technologies, crowd in private sector financing, and position Brazil as a global reference for industrial transformation.
The operation consists of a US$1 billion International Bank for Reconstruction and Development (IBRD) loan and a US$60 million Clean Technology Fund loan, and is expected to mobilize US$1.8 billion in other development and commercial financing. Resources will be channeled through BNDES, one of the world’s largest national development banks, with a financing portfolio of approximately R$585 billion. The project is designed to de-risk early-mover investments and catalyze private capital as green industrial markets mature, in support of Brazil’s target of reducing the greenhouse gas intensity of industrial GDP by 30 percent by 2033.
The financing targets three interconnected areas central to Brazil’s industrial decarbonization. The first is low-carbon industrial commodities, where funding will support the cement, steel, glass, chemicals, and aluminum sectors in cutting emissions without sacrificing their competitive edge in global markets. The second is low-carbon fuels, with investments channeled into sustainable aviation fuel, e-methanol, biomethane, and other next-generation fuels that will help decarbonize aviation and maritime transport. The third is common-user infrastructure: shared assets like green hydrogen and ammonia storage and pipelines that give multiple industries access to clean energy inputs at once, lowering the barriers to entry and accelerating the broader scale-up of new technologies.
