Brazil Climate Hub, Carbon Disclosure Project (CDP), Sitawi, Institute for the Climate (IPC), BMG and Principles for Responsible Investments (PRI) debated this Tuesday (2), during COP26, about contributions of financial sector to the increase climate ambition in Brazil.

With a deforestation rate around 44% higher than in 2014, Brazil needs to demonstrate that it is a safe or attractive place for foreign investors. For this reason, all representatives of the institutions declared that only a coalition is capable of engaging companies, managers and investors.

The PRI, for example, announced on the same day the launch of a letter of commitment signed by 33 investors with assets under management of nearly US$9 trillion, as part of a process to raise awareness about the risk that deforestation poses not only to the planet, but to the Brazilian economy itself.

On a parallel path, there is the development of increasingly effective tools for measuring carbon emissions, so that managers know the amount dumped into the atmosphere by their companies. This knowledge through the tools is important for economic sectors to work on risk mitigation management, so that they can identify opportunities to create products and services that have a positive impact on the environment and society.

On another front, development banks such as BNDES and BMG have been working with climate finance for municipalities. This action is part of SDG 11 of the Paris Agreement, which deals with resilient cities. And banks have provided lines of credit for infrastructure projects, civil construction, energy improvement and even how to improve the attractiveness of tourist cities.

The final conclusion of the panelists showed that several solutions are presented by the private sector, but that engagement with the Government is crucial for the decarbonization and SDG agenda to move towards the fulfillment of these goals.