Contributions of development banks to the climate agenda
Two distinct but complementary events showed that the Brazilian business sector has been moving vigorously to tackle climate change in order to reverse the situation and stand out as one of the largest low-carbon economies.
“The relevance of the business sector in strengthening global climate actions”, organized by the Brazilian Business Council for Sustainable Development (CEBDS), brought together representatives of companies, consultancies and institutions dedicated to tackling climate change. The Brazilian Development Association (ABDE) and the Inter-American Development Bank (IDB), in turn, brought together financial institutions and development banks in the panel “Making finance work for climate finance in the Amazon: the role of development banks”.
Both events addressed the actions of companies in facing the climate crisis, and how development banks can help in this process, since investments to restore the planet’s health have a high cost.
One of the consensus was that, when talking about forest restoration, for example, the direct impact is carbon capture. However, restoration ends the degradation of the soil, which stores more nutrients and creates healthier areas for cultivation and contributes to cleaning the water.
“Currently, to provide resources for all people it is necessary to use 70% more natural resources, the equivalent of almost two planets. Measures in the private sector have the ability to change the landscape more quickly, managing to provide products, services and finding solutions that mitigate the negative impacts”, explained JBS CEO Gilberto Tomazoni.
Solution with biofuels
Another measure being taken to generate a green economy and contribute to the mitigation of reductions in greenhouse gas emissions is the development of biofuels, replacing fossil fuels. According to Erasmo Carlos Battistella, CEO of BSBIOS Indústria e Comércio de Biodiesel Sul Brasil S/A, ethanol and biodiesel have already eliminated 83 million tons of carbon dioxide from the atmosphere.
“The next step is the launch of green diesel, which will completely replace diesel, and green kerosene, to contribute to the reduction of emissions in the aviation sector”, he said.
For Marina Grossi, president of CEBDS, there is no doubt that Brazil has the capacity to become a great power in the green economy.
“To get out of the pandemic with one foot in the green economy, the country’s effort for the next decade must focus on regeneration of the Amazon, through a joint effort to place the Brazilian economy at the center of this new reality. And to reach this goal, it is necessary for Brazil to leave the position of mitigation and compensation in order to create green jobs and GDP”.