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1、Finding Pathways,Financing Innovation:Tackling the Brazilian Transition ChallengeW H I T E P A P E RA U G U S T 2 0 2 3In collaboration with Oliver WymanContentsImages:Unsplash,Getty Images 2023 World Economic Forum.All rights reserved.No part of this publication may be reproduced or transmitted in
2、any form or by any means,including photocopying and recording,or by any information storage and retrieval system.Disclaimer This document is published by the World Economic Forum as a contribution to a project,insight area or interaction.The findings,interpretations and conclusions expressed herein
3、are a result of a collaborative process facilitated and endorsed by the World Economic Forum but whose results do not necessarily represent the views of the World Economic Forum,nor the entirety of its Members,Partners or other stakeholders.ForewordExecutive summaryIntroduction1 Brazils commitment t
4、o combatting climate change2 Sector pathways to net zero3 Sustainable finance instruments4 Brazils unique profile and the role of policy-makers5 Creating networks to build societal resilienceConclusion and call to actionContributorsAcknowledgementsEndnotes345782831Finding Pathways,Financi
5、ng Innovation:Tackling the Brazilian Transition Challenge2ForewordBrazil,the fifth largest country in the world,is a formidable global economic and political power.It is not only the largest economy in Latin America but also a key global supplier of agricultural,mineral and oil and gas resources.It
6、is also the largest greenhouse gas emitter in Latin America and the Caribbean and home to 60%of the Amazon basin.It thus plays a critical role in the global fight against climate change.As a party to the United Nations Framework Convention on Climate Change(UNFCCC)and a signatory of the Paris Agreem
7、ent,Brazil last updated its nationally determined contributions(NDCs)in April 2022,pledging to achieve climate neutrality by 2050(down from 2060 in the 2020 NDCs).Achieving its ambition will require cross-industry collaboration,the development and adoption of adequate financing instruments that help
8、 bring promising innovations to life,deepened public-private dialogue and broad-based civil-society support.Brazilian business and public-sector leaders carry significant responsibility in the race to avert a climate catastrophe and,through numerous efforts,are attempting to contribute to the fight
9、against climate change.The World Economic Forum,as the international organization for public-private collaboration,offers a platform for industry and public-sector actors to jointly take positive action.It has launched numerous high-impact initiatives to address the climate crisis both globally and
10、across Latin America.The Forums Centre for Financial and Monetary Systems is home to the Financing the Transition to a Net Zero Future initiative1 in collaboration with knowledge partner Oliver Wyman which aims to accelerate the mobilization of capital towards innovative,breakthrough technologies th
11、at enable industrial decarbonization.As many global efforts to combat climate change continue to be led by the United States and Europe,there is a growing realization that policies and industry strategies must reflect significant differences between developed and developing economies.China is a case
12、 in point:throughout 2022,and building on previous work,the Forum and Oliver Wyman convened industry and public-sector experts to explore promising pathways for financing large-scale decarbonization in China.The insight report Chinas Climate Challenge:Financing the Transition to Net Zero2 showed tha
13、t the industrial and financing system in China is unique.Brazil,on the other hand,offers a more representative case study for transition opportunities and challenges in emerging economies.This is why the Forum and Oliver Wyman brought together industry leaders,financing experts and policy-makers in
14、multiple workshops and interviews to explore transition pathways,financing mechanisms and the required policy architecture from Brazils perspective.We thank all our partners and those who contributed their expertise to this work for their insights,and hope that this paper,which summarizes our initia
15、l findings,proves useful.More than a policy paper,this is a call to action,and the Forum,in collaboration with Oliver Wyman,will continue to provide a platform in Brazil and throughout Latin America for business and public-sector leaders to come together as a regional and global community to tackle
16、the most important challenges.Derek Baraldi Head of Sustainable Finance,World Economic ForumJohn Colas Partner and Vice-Chairman,Financial Services America,Oliver WymanFinding Pathways,Financing Innovation:Tackling the Brazilian Transition Challenge August 2023Finding Pathways,Financing Innovation:T
17、ackling the Brazilian Transition Challenge3Executive summaryBrazil has committed to reducing its greenhouse gas(GHG)emissions by 37%by 2025 and by 50%by 2030,based on 2005 levels,with the ultimate goal of achieving carbon neutrality by 2050.In recent years,the country has adopted several policies to
18、 achieve these commitments,such as the launch of nationally determined contributions(NDCs)by the Ministry of the Environment in 2015(ratified in 2016 and updated in 2020 and 2022),the creation of the Amazon Fund in 2017 and the implementation of the National Green Growth Program in 2021.3 The countr
19、y can become a green production hub and encourage the generation of carbon credits,due to its rich biodiversity and reforestation potential.It also holds a competitive advantage with regards to renewable power generation and,due to its rich endowment with feedstock,infrastructure and technology,has
20、the capacity to produce biofuels.However,significant challenges remain and must be overcome in the coming years if Brazil is to realize this potential:Immediate halt of illegal deforestation:After a successful programme to stop illegal deforestation in the first decade of this century,Brazil experie
21、nced a sharp increase in rates of deforestation in the Amazon forest,as well as in its savanna biome known as the Cerrado.In more recent years,land grabbing in public areas,illegal mining in reserves assigned to Indigenous peoples,opening of new areas for cattle-raising and crops despite the existen
22、ce already of vast areas for agricultural purposes became well documented as the government became less active in monitoring and environmental protection initiatives.Brazil urgently needs to resume its efforts to combat illegal deforestation.National and sectoral decarbonization strategies:Brazil mu
23、st develop a clear strategy to decarbonize different sectors of the economy.This involves conceiving sectoral decarbonization pathways that establish specific goals and guidelines for each sector,taking into account the countrys unique features.These goals should be globally recognized and aligned w
24、ith those of the Paris Agreement.Financial instruments for the transition:As part of the work done for this paper,Oliver Wyman estimates that the required investment to achieve Brazils climate transition by 2030 amounts to approximately BRL 1 trillion($200 billion).This number requires significant i
25、nvestment in transitional technologies and strategies.To attract and facilitate these investments,Brazil must establish robust financing structures,including the development of new financial instruments,such as green,social,sustainable and sustainability-linked bonds.In addition to new financial ins
26、truments,the mobilization of private funding must be accompanied by the development of a national taxonomy.The difficulty in understanding Brazilian specificities currently presents a major obstacle to realizing greater capital flows.Policy support and low-carbon agriculture:Simply leaving industry
27、to take action and adopt fit-for-purpose financing instruments will not be sufficient to address the scale of the climate challenge Brazil is facing.It requires a proactive approach by policy-makers to provide clear targets,supporting measures and certainty for industry leaders to move forward.The a
28、gricultural sector,an important and growing contributor to GDP,presents a particular challenge for Brazil and developing a low-carbon land-use model is of fundamental importance.Education,skilling and support for SMEs:A lack of talent is a critical obstacle to accelerating Brazils transition efforts
29、.Professionals must be educated at the secondary and higher education levels,and current employees where appropriate reskilled or upskilled.In addition,transition initiatives by large industry players almost always affect their supply chains,which can often incorporate small and medium-sized enterpr
30、ises(SMEs).It is necessary to promote greater dialogue between large industry players and smaller enterprises on climate and sustainability in order to increase awareness and encourage and trigger concrete actions.Brazil has the potential to affect the global fight against climate change beyond its
31、national borders.Finding Pathways,Financing Innovation:Tackling the Brazilian Transition Challenge4IntroductionThis call to action follows more than six months of workshops in So Paulo,expert interviews and desk research.The multistakeholder dialogues facilitated by the World Economic Forum and Oliv
32、er Wyman showed the need for:1)clearly articulated decarbonization pathways for high-emitting industries;2)the development and adoption of innovative financing instruments to enable these pathways;3)adequate policy support;and 4)the education of required talent in universities,up/reskilling of curre
33、nt employees and the empowerment of small and medium-sized enterprises(SMEs)throughout the various supply chains.Addressing these four priorities,the paper aims to provide insights to business,public-sector and civil-society leaders about the Brazilian reality concerning climate goals and highlight
34、local market challenges and opportunities.In addition,it emphasizes how Brazilian enterprises can influence and contribute to the global carbon neutrality agenda.Discussions informing this paper took place in the context of a dramatic macroeconomic shift marked by rising inflation and a slowdown in
35、global growth.This presented significant challenges,in particular to emerging economies such as Brazil,triggering fears about a possible global economic crisis.In the case of Brazil,the country is expected to keep pace with global economic realities and perform moderately in the coming years.4 Works
36、hop participants and interviewed experts stressed that this context matters as the climate crisis does not exist in isolation.Dynamics that deepen inequalities among and within countries hamper progress towards the Sustainable Development Goals(SDGs)and the Paris Agreement.5Yet despite the current c
37、hallenges,the tone during discussions hosted in preparation for this paper was upbeat.Business leaders recognize the opportunity Brazil has and the investments made:the country has a mostly renewable electricity matrix,with 88%of electricity generation coming from clean sources in 2022.In addition,i
38、t is the second largest producer of biofuels in the world,with ethanol accounting for approximately 20%of the volume of fuels sold in the country.In the agricultural sector,modern planting and crop management techniques ensure high productivity and multiple harvests per year.And despite fluctuating
39、deforestation rates and ongoing illegal activities threatening the environment,Brazil still has 59%of its land covered by native forests and is home to the highest concentration of biodiversity on the planet.6,7,8 This natural endowment,paired with the ingenuity of its people,is both encouraging and
40、 promising.While the countrys commitment to climate action remains a subject of ongoing debate and requires continued attention and collaboration among business,government,civil society and international partners business leaders and experts who contributed to the findings presented in this paper ar
41、e already taking action.What they need is a platform and a common narrative that enables them to scale their impact.Brazil has the potential to be a catalyst for positive change in the global fight against climate change.For the country to fully realize its potential,the remaining barriers outlined
42、in this publication must be overcome.The authors welcome your response to this call for action and invite you to join regional Forum initiatives and future convenings.This paper aims to shed light on Brazils climate goals and examine the countrys unique enablers and distinct challenges in achieving
43、these goals.Finding Pathways,Financing Innovation:Tackling the Brazilian Transition Challenge5How the Forum is shaping the sustainable finance agenda globally and in the regionBOX 1Financing the Transition to a Net Zero Future:9 The Financing the Transition to a Net Zero Future initiative,a collabor
44、ation between the World Economic Forum and knowledge partner Oliver Wyman,was launched in June 2020 to accelerate the mobilization of capital towards breakthrough decarbonization technologies in the early stages of development.The initiative has engaged a multistakeholder community of financiers,ind
45、ustry stakeholders,philanthropists and public institutions to analyse specific technologies in the most important hard-to-abate sectors,develop mechanisms for different stakeholders to co-design solutions and identify policy interventions necessary to mobilize private capital.First Movers Coalition(
46、FMC):10 The FMC is a coalition of companies using their purchasing power to create early markets for innovative clean technologies across eight hard-to-abate sectors.These in-scope sectors are responsible for 30%of global emissions a proportion expected to rise to more than 50%by mid-century without
47、 urgent progress on clean technology innovation.Although formulating purchase commitments and aggregating demand against these commitments is core to the FMC,the coalitions activities go beyond this,with a focus on supporting members in delivering on their commitments and creating an enabling enviro
48、nment.Tropical Forest Alliance(TFA):11 The TFA,hosted by the World Economic Forum,is a leading partnership platform that brings together partners around the common goal of implementing solutions to tackle deforestation linked to the production of agricultural commodities.The alliance includes more t
49、han 180 partners representing the private sector,government,civil-society organizations,Indigenous peoples groups and multilateral organizations committed to ensuring the sustainable production of palm oil,soy,beef,cocoa and pulp and paper.The TFA fosters cross-sector collaboration and works across
50、Latin America,Africa,China and South-East Asia.Brazil has a considerable competitive advantage,given that its electricity matrix is among the lowest in greenhouse gas emissions.The Brazilian electricity sector can further contribute to this differential by adopting an ambitious strategy of decarboni
51、zation and achieving net zero.Joining efforts around a decarbonization agenda,which leads us to an efficient,fast and socially just energy transition,will allow us to move towards a more prosperous and sustainable society.In this sense,the sustainable management of financial capital,driven by credit
52、 operations structured under sustainability aspects,is an important enabler for achieving this bold goal.Ivan de Souza Monteiro,Chief Executive Officer,EletrobrasFinding Pathways,Financing Innovation:Tackling the Brazilian Transition Challenge6Brazils commitment to combatting climate change1Brazils
53、leadership is intent on promoting effective action to mitigate the impacts of climate change,while its private-sector leaders are setting out ambitious transition strategies.In 2019 Brazil was responsible for about 3%of global greenhouse gas(GHG)emissions,and was the sixth largest emitter and the ni
54、nth largest economy in the world.Approximately 70%of emissions came from changes in land use,deforestation and agriculture.12,13In 2022,the country raised the ambition of its nationally determined contributions(NDCs),pledging a 50%reduction in GHG emissions by 2030 and committing to achieve net-zero
55、 emissions by 2050.14 However,while reiterating the commitment to a reduction above what would be expected for a developing country with historically low responsibility for rising global temperatures,the new NDC focuses less on advancing climate goals,placing more emphasis on maintaining past achiev
56、ements.In fact,the new NDC represents a reduction in the level of ambition in absolute terms.Although a target of 50%reduction by 2030 has been established,the accounting methodology of Brazils absolute emissions in its baseline year(2005)was updated with the Third National Inventory,increasing the
57、level of emissions from 2.1 GtCO2(gigatons of carbon dioxide)to 2.8 GtCO2.In practice,this allows the country to emit an additional 400 million tons of GHGs compared to the previous target(43%reduction by 2030).Moreover,the new NDC does not include ambitions related to reforestation and renewable en
58、ergy present in the 2018 NDC,making the implementation of sectoral action less transparent.Explainer:Nationally determined contributions(NDCs)BOX 2NDCs are at the heart of the Paris Agreement and the achievement of its long-term goals.NDCs embody efforts by each country to reduce national emissions
59、and adapt to the impacts of climate change.The Paris Agreement(Article 4,Paragraph 2)requires each party to prepare,communicate and maintain successive NDCs that it intends to achieve.Parties shall pursue domestic mitigation measures,with the aim of achieving the objectives of such contributions.15H
60、istorically,Brazil has been an important protagonist in the global climate change journey.The country has been a signatory to the United Nations Framework Convention on Climate Change(UNFCCC)since 1992 and has ratified the Paris Agreement,which seeks to limit global warming to less than 2C,preferabl
61、y less than 1.5C.Over the years,the country took important steps in combatting climate change,including implementing policies to reduce deforestation,promoting reforestation and creating initiatives to support the low-carbon economy(Figure 1).Finding Pathways,Financing Innovation:Tackling the Brazil
62、ian Transition Challenge7Brazils main actions and policies in the fight against climate changeFIGURE 1Signature of the UNFCC920102015Signing of the Kyoto Protocol,committing to reduce the countrys GHG emissions by 5.2%below 1990 levels by 2012Announcement of the National Policy on Climate
63、 Change,which increased the GHG emission reduction target from 36.1%to 38.9%by 2020(vs.2005 emissions)Approval of the Forest Code,with measures to reduce deforestation and promote reforestationSubmission of Brazils original nationally determined contribution(NDC),committing to reduce GHG emissions b
64、y 37%by 2025(vs.2005)Ratification of the Paris Agreement200202021Announcement of the creation of the Amazon Fund,offering financial incentives to landowners and companies that do not practise illegal deforestationPublication of the Ministry of the Environments Initial Proposal for the Imp
65、lementation of Brazils NDCIntroduction of a federal development strategy(20202031),which includes environmental aspects with the aim of preserving biodiversity,reducing illegal deforestation,recovering native vegetation and making sustainable use of national biomassCommitment to zero illegal defores
66、tation until 2028(vs.previous commitment for 2030)and reducing emissions by 37%by 2025 and 43%by 2030 Creation of the National Green Growth Program,which aims to offer financing and subsidies to encourage sustainable economic projects and activities,prioritize the granting of environmental licences
67、and generate so-called“green jobs”Debates about and forwarding of law no.528,which aims to allow the regulation of the carbon credit market,stimulating reforestation,combatting deforestation and sustainable agriculture projects2022Publication of decree no.11,075,which establishes a deadline of 180 d
68、ays(extendable by another 180 days)for the submission by the private sector of proposals for sectoral plans to mitigate climate change Updating of the NDC to reflect the current ambition of a 50%reduction in GHG emissions by 2030 and carbon neutrality by 2050Presentation of provisional measure 1,151
69、 to make room for the commercialization of carbon credits,which may result from the reduction of emissions or the removal of CO2,in addition to allowing the Brazilian National Development Bank(BNDES)to enable financial agents to act in the financing of the National Fund on Climate Change(FNMC)2023Pr
70、oposal for disclosure by the Ministry of Finance of the Ecological Transition Plan,which aims to boost the economy with sustainable actions distributed in six pillars,addressing incentives for carbon credits,technological innovation,bioeconomy,energy transition for carbon capture and storage(CCS),th
71、e circular economy and adaptation to climate change16Source:Multiple sources,Oliver Wyman analysisFinding Pathways,Financing Innovation:Tackling the Brazilian Transition Challenge8As shown in Figure 2,during the 1990s,the country kept its GHG emissions stable despite upticks in economic growth.Then,
72、emissions started to rise at the beginning of the century,mainly related to the expansion of new agricultural areas,peaking in 2003.The government began to take greater action to avoid new emissions and was able to implement deforestation control actions that led to significant reductions in emissio
73、ns in the years that followed,even when the country was experiencing strong economic growth and a substantial increase in agricultural output.However,since 2011 annual GHG emissions have been on the rise once again,despite a strong retraction of economic activity,including the COVID-19 crisis in 202
74、0.Unfortunately,the recent increase in emissions has been contradictory to the commitments made,resulting in a weakening of the countrys once prominent position in the climate transition compared to its peers.17,18,19History of GHG emissions in Brazil vs.annual growth of Brazilian GDP(In GtCO2 and%)
75、FIGURE 2Source:SEEG,BCBCurrently,Brazil is seeking to recapture the leading role it held during the first decade of the 21st century with the development of a series of initiatives such as the Ecological Transition Plan,the creation of the Inter-Ministerial Commission on Climate Change to mobilize a
76、nd align the multiple actions of the federal government,a new provisional law to create a national regulated carbon market(emissions trading scheme,see below)aligned to its NDCs and the development of a national taxonomy for sustainable finance.In addition,the country is preparing to host important
77、events such as the G20 summit in 2024,where climate change will be top of the agenda,and the 30th UN Conference of Parties on Climate Change(COP30)in 2025 in Belm do Par,the second largest city in the Amazon region.While challenges remain and adjustments will have to be made,Brazils commitment to co
78、mbatting climate change is strengthening.The countrys leadership is determined to promote effective actions to mitigate the environmental impacts,and its private-sector leaders are starting to implement ambitious transition strategies.Explainer:Emissions trading scheme(ETS)BOX 3An ETS is a market me
79、chanism that allows bodies(such as countries,companies or manufacturing plants)that emit GHGs into the atmosphere to buy and sell these emissions(as permits or allowances)among themselves.The central theory of an ETS is that creating a price for carbon is the most cost-effective way of achieving sig
80、nificant cuts in GHG emissions.20Brazil:historical GHG emissions in GtCO2 0.00.51.01.52.02.53.03.54.04.55.05.56.06.57.07.519952.2%19963.4%19970.3%19980.5%19994.4%20001.4%20013.1%20021.1%20035.8%20043.2%20054.0%20066.1%20075.1%2008-0.1%20097.5%20104.0%20111.9%20123.0%20130.5%2014-3.6%2015-3.3%20161.3
81、%20171.8%20181.2%2019-3.3%20205.0%20212.72.42.54.2%2.42.32.42.63.13.02.62.32.02.01.72.41.81.92.02.02.12.11.92.02.12.22.41.7Kyoto Protocol(1997)Powerblackout(2001)Start of flex vehiclesmanufacturing(2003)Pr-sal discovery(2006)National Plan forClimate Change(2009)Tax reductions for cars(2009)Tax exemp
82、tionfor cars(2012)Paris Agreement(2015)COVID-19(2019)Total GHG emissions(GtCO2)Annual GDP growth(%)Resumed emissions growth trajectory in 2011 after peaking in 2003 Finding Pathways,Financing Innovation:Tackling the Brazilian Transition Challenge9Sector pathways to net zero2Decarbonization pathways
83、represent possible trajectories for emission reductions across different sectors of the economy over time.The main factors influencing the establishment and use of reference pathways by governments and organizations include:Alignment with the Paris Agreement,usually with low or no overshoot of the 1
84、.5oC limit of global warming compared to pre-industrial levels Providing a reference for how fast GHG emissions should fall,and to what level(target)Identification of actions to be taken or the sectoral changes required to drive the transition,including investments,policies and applicable legislatio
85、n Forming the basis for the establishment of a regulated carbon credit marketPathways should be developed based on robust data and analysis,taking into account the specificities of each economic sector.It is necessary to consider factors such as the current contribution of emissions from each sector
86、 and the potential for reduction,the technical and economic feasibility of decarbonization solutions and national targets and commitments.Pathways should be globally recognized to ensure comparability and consistency with other countries and regions.The participation of experts,academic institutions
87、,companies and civil-society organizations is fundamental,ensuring an inclusive and collaborative approach.Developing specific pathways for Brazil requires identifying the main drivers of GHG emissions in each sector,establishing ambitious and feasible reduction targets and clear guidelines for plan
88、ning and implementing decarbonization policies and measures.In addition,the pathways will also serve as a strategic planning tool for the country,allowing the identification and exploration of investment opportunities in low-carbon technologies,stimulating innovation and sustainable development in d
89、ifferent sectors of the economy.The European Green Deal is a regional strategy signed in December 2019 that aims to make Europe the first continent to become climate neutral by 2050.Among its initiatives are the investment of 800 billion($900 billion)to increase offshore wind energy production from
90、12GW to 300GW by 2050,the development of new technologies,the encouragement of sustainable mobility(e.g.more than 30 million zero-emission vehicles in circulation in Europe by 2050),the elimination of industrial pollution and the preservation of biodiversity.Organizations specialized in decarbonizat
91、ion for specific industries have been proposing pathways.The International Energy Agency(IEA),one of the industrys leading reference organizations,defines three main decarbonization scenarios:Net Zero Emissions by 2050 Scenario(NZE):sets out a narrow but feasible path for the global energy sector to
92、 reach net zero CO2 emissions by 2050 without relying on emission reductions outside the sector.This scenario predicts that global temperature rise will be limited to 1.5C by 2100(with a 50%probability).Announced Pledges Scenario(APS):assumes governments meet all aspirational climate targets on time
93、.In this scenario,it is estimated that by 2100 temperatures will rise by 2.1C(with a 50%probability).Stated Policies Scenario(STEPS):reflects the sectoral policies that are already in place as well as those that have recently been announced by governments around the world.This scenario estimates tha
94、t by 2100 global temperatures will increase by 2.6C(with a 50%probability).Finding Pathways,Financing Innovation:Tackling the Brazilian Transition Challenge10Brazil would have to develop a clear strategy to decarbonize different sectors of the economy,particularly those whose absolute emissions are
95、material to our national GHG inventory.When establishing climate targets,country-specific decarbonization scenarios are preferred over global models,once they capture value-chain aspects that are particular to the countrys reality and,therefore,result in more plausible decarbonization pathways.Paris
96、-aligned national decarbonization scenarios are not yet available for all of Brazils material sectors in terms of GHG emissions,but are likely to be developed along with regulatory advances,such as the regulation of the carbon market.In the meantime,many banks have adopted national decarbonization p
97、athways where possible and will update sectoral emissions reduction targets once national credible scenarios are available.Marcelo Sarno Pasquini,Head of Sustainability,Bradesco BankTwo categories of organizations have published pathways for Brazil:Globally recognized organizations,such as the IEA,t
98、he Network for Greening the Financial System(NGFS),the Intergovernmental Panel on Climate Change(IPCC),the Organisation for Economic Co-operation and Development(OECD)and the Science-Based Targets initiative(SBTi).However,these pathways do not yet fully address Brazilian particularities and,in many
99、cases,do not engage with different sectors in detail(for example,the IEA provides pathways only for the transport sector in general,without breakdowns for road,rail,maritime or aviation segments).National organizations with technical capacity and in-depth knowledge of conditions on the ground in Bra
100、zil,such as the Talanoa Institute and the Climate Center of COPPE-UFRJ Climate Center(see Case study 1).Although these organizations do not yet have global accreditation,they have published pathways for Brazil and are progressing towards combining local perspectives with global standards,thus becomi
101、ng reference points in the national debate.As seen in the examples below(Figure 3),the need for nationally agreed pathways for Brazil makes it harder to enforce investments in the transition to a net-zero economy.In the transportation sector,IEA NZE does not present any analysis of the Brazilian cas
102、e,which has peculiar dynamics given the prevalence of light vehicles using flex engines(ethanol and/or petrol).For the agriculture sector,the recent SBTi FLAG(forest,land and agriculture)also does not present any reference for Brazil,which once again has particular characteristics based on soil,clim
103、ate and local technologies.On the other hand,there are pathways proposed by local organizations offering different trajectories.Finding Pathways,Financing Innovation:Tackling the Brazilian Transition Challenge11Examples of pathways and adequacy in the case of Brazil FIGURE 3Example of pathways for t
104、he transportation sectorCO2emissions,normalized to 2020 levels to 100Example of pathways for the agriculture sectorCO2emissions,normalized to 2020 levels to 1002030-31%-35%-9%-15%+51%-27%-5%-18%02040608020202520302035204020452050IEA APSIEA NZE Net Zero Road Transport IEA NZE Net Zero Avia
105、tion IEA NZE Net Zero Shipping IPCC SSP1.9NGFS GCAM Net Zero NGFS GCAM Divergent Net Zero FBMCCurves for transportation subsectors(road,aviation and shipping)are available globally but not for Brazil-60-40-20020302035204020452050NGFS GCAM Net Zero NGFS GCAM Divergent Net Zero F
106、BMCClimate Center COPPEUFRJTalanoa/Cebeds CMA1 Talanoa/Cebeds CMA2 SBTi FLAG Unavailable for Brazil at a sector level-30%-103%-33%-43%-48%-74%-57%SBTi FLAG,the main benchmarking for the agricultural sector,is unavailable for Brazil 1 Brazilian Forum of Climate Change,2018 Source:Oliver Wyman analysi
107、s;Brazilian Forum on Climate Change,2018;IEA,2022;UTS,NFGS,SBTI and FBMCFinding Pathways,Financing Innovation:Tackling the Brazilian Transition Challenge12In 2021 the Talanoa Institute,an independent Brazilian civil-society organization dedicated to enhancing climate policies,joined with the Climate
108、 Center of COPPE-UFRJ to launch the“Climate and Development:Visions for Brazil 2030”initiative.This opened a dialogue on how to increase Brazils efforts under the Paris Agreement and at the same time strengthen the countrys position in the face of a new economic reality,through the outline of a deve
109、lopment strategy compatible with GHG emission reductions by 2030 and carbon neutrality by 2050.21The scenarios raised by the initiative were:Economic recovery scenario(REF):predicts an increase in deforestation by the end of 2023,a decline/stability by 2030,and the continuation of current mitigation
110、 plans.It will not address new climate policies until 2030.Fair recovery and transition scenario(CMA1):predicts that two-thirds of GHG reduction efforts will be directed at land-use change and the other third achieved via carbon pricing.This scenario champions measures to reduce emissions and stimul
111、ates not only mitigation but also policies for land management and energy security.Revenues from carbon pricing are applied in public initiatives to promote income distribution.Recovery scenario with just transition and zero deforestation in the Amazon and Atlantic Forest(CMA2):predicts that most GH
112、G reductions will come from land-use change and that deforestation rates by 2030 will be zero in the Amazon and Atlantic Forest biomes,while decreasing in the other biomes.The CMA1 and CMA2 scenarios allow for reducing emissions by 2030,positioning the country to neutralize GHG emissions by 2050 and
113、 mitigate inequalities through carbon pricing,strategic investments and public policies.In addition,the scenarios serve as a benchmark for aligning actors under the Paris Agreement(e.g.investors and entrepreneurs can reference proposed scenarios and pathways to invest in business opportunities,while
114、 governments and private institutions can formulate and revise their intermediate net-zero transition goals).CASE STUDY 1Talanoa Institute and Climate Center of COPPE-UFRJ:Launching the“Climate and Development:Visions for Brazil 2030”initiativeGiven the current lack of clear sector guidance for hard
115、-to-abate sectors in Brazil,participants in the discussions convened by the Forum stressed that current gaps between national considerations and global developments must be addressed.They highlighted in particular the need to:1.Strengthen collaboration between national organizations and global insti
116、tutions2.Seek a joint approach involving the exchange of best practices3.Locally validate methodologies and establish benchmarksThe creation of sectoral pathways to net zero adapted to conditions on the ground in Brazil,globally recognized and supported by highly credible institutions,will allow for
117、 more effective targeting of decarbonization actions in each economic sector.In addition,it will provide a strategic guide for defining targets and implementing transition measures aligned with the countrys climate commitments,including the establishment of a regulated carbon market.Within this cont
118、ext it is important that the Brazilian government works closely with representatives from hard-to-abate sectors,supported by industry and academic experts,to develop national pathways aligned to its decarbonization commitments(as outlined in the NDCs).These pathways should provide guidance on the ef
119、forts needed in several areas,including technological innovation,capital investments,development of new competencies and talent,financial flows and national infrastructure.This will then serve as the basis for directing the country towards a greener economy,as more developed nations such as European
120、 countries have done as part of the Green Deal and as the United States has done in announcing initiatives such as the Inflation Reduction Act(IRA)22 and the First Movers Coalition.23 Finding Pathways,Financing Innovation:Tackling the Brazilian Transition Challenge13Sustainable finance instruments3A
121、 successful transition to carbon neutrality requires a clear understanding of the necessary financial flows and the identification of enabling instruments.Globally,the investment needed by 2050 to achieve carbon neutrality in line with the Paris Agreement is estimated to be approximately$125 trillio
122、n.24For Brazil,Oliver Wyman has estimated that the required investment to achieve national transition targets25 by 2030 amounts to approximately BRL 1 trillion($200 billion).Investment per sector,detailed in Figures 4 and 5,was estimated by consolidating projections for investments related to climat
123、e mitigation of the main companies,sectoral perspectives and government plans.26Expected investments for climate change mitigation in the Brazilian economy until 2030FIGURE 41 Land use,land-use change and forestry 2 Aluminium,real estate,chemical and cementSource:Oliver Wyman analysisAgriculture and
124、 livestock333(33%)LULUCF1302(30%)PowerBiogas 23(2%)38530226030 20Land-use change and forestry52(5%)Energy30(3%)Other25(1%)Biofuels78(8%)Hydrogen135(14%)Oil and gas 24(2%)industryTransport(in BRL billions)Iron/steel15(1%)Finding Pathways,Financing Innovation:Tackling the Brazilian Transition Challeng
125、e14Main investment focuses until 2030 for Brazils climate transitionFIGURE 5Source:Oliver Wyman analysisTransportationPowerLULUCFIndustryEnergyElectrification of vehicles,efficient public transport networksWind and solar farms,energy storage technologies,incentives for distributed generation and ene
126、rgy efficiency measuresAgriculture and livestock:sustainable practices such as integrated crop-livestock-forestry(ICLF),recovery of degraded pastures,no-tillage practices,irrigated systems and bio-inputs,as well as reducing deforestationLand-use change and forestry:monitoring and combatting illegal
127、deforestation and promoting reforestation and biodiversityEnergy efficiency,circular economy,carbon capture,utilization and storage(CCUS),green hydrogen and electrificationBioenergy:production of ethanol,biodiesel,HVO(hydrotreated vegetable oils),SAF(sustainable aviation fuel)and biogasOil and gas:r
128、eduction of flaring,CCUS/EOR(enhanced oil recovery),platform electrificationHydrogen:green hydrogen from solar and wind powerFinding Pathways,Financing Innovation:Tackling the Brazilian Transition Challenge15In the Brazilian market,the most diverse sectors have space to attract capital for investmen
129、t in projects with social and environmental benefits.The agricultural sector is an example that has been increasingly accessing the labelled debt market through Agribusiness Receivables Certificates(Green CRA),which,in addition to having tax exemption for individuals,make it possible to finance proj
130、ects aimed at sustainable agriculture and renewable energy such as biofuel.Other structures go in the same direction,as thematic bonds,transition bonds and the so-called social impact bonds.Despite the various gateways to this market,there is still room for improvement,such as greater ESG integratio
131、n within companies that wish to access this market and the development of metrics to monitor the impacts of these projects.In this sense,financial institutions have a crucial role in supporting,fostering and educating these companies.Mariana Oiticica,Co-Head of ESG&Impact Investing,BTG PactualTo fac
132、ilitate the investment required,it is essential to establish robust financing structures,such as the development of sustainable finance instruments,mobilization of private investments and access to international resources to combat climate change.The World Economic Forum report Financing the Transit
133、ion to a Net Zero Future27 highlights the importance of using different forms of capital to ensure the successful transition to carbon neutrality and the achievement of established targets.While mature technologies such as wind,solar,vehicle electrification and ethanol can benefit from traditional f
134、inancing instruments,other emerging technologies critical to decarbonization face challenges in attracting the required funding.Technologies such as green hydrogen,carbon capture,utilization and storage(CCUS)and sustainable aviation fuel(SAF)are considered promising for decarbonization.Still,they ar
135、e not yet sufficiently mature or lack significant scale.These technologies face technical challenges,high costs and the need to develop adequate infrastructure and supply chains.Given this backdrop,exploring new financial and support instruments is essential to boost the development and implementati
136、on of such emerging technologies.Currently,five main debt and loan instruments are being used to finance sustainability projects:Green bonds or loans:issued to finance projects with environmental benefits,such as renewable energy and sustainable agriculture.Social bonds or loans:resources directed t
137、o projects with social benefits,such as basic infrastructure and food security.Sustainable bonds or loans:a combination of green and social bond models covering sectors such as sanitation.Transition bonds or loans:issued to fund the transition of hard-to-abate sectors such as iron and steel to produ
138、ction methods with a reduced environmental impact or lower carbon emissions.Sustainability-linked bonds:no specific allocation of resources.Linked to the companys sustainability performance targets(SPTs),measured by key performance indicators(KPIs).Finding Pathways,Financing Innovation:Tackling the
139、Brazilian Transition Challenge16In Brazil,as shown in Figure 6,although there have been innovations in developing financing instruments aimed at the climate transition,with a sharp increase in the number of green operations between 2020 and 2022,greater coordination is still needed to boost adoption
140、 of these instruments:the volume of transactions in Brazil in 2021 reached BRL 85 billion($17 billion)and represented only 1%of the volumes transacted globally of approximately BRL 8 trillion($1.6 trillion).Although the market for these financial instruments has robust growth potential,the volumes a
141、re still a fraction of the capital needed to meet the countrys climate commitments.As the market becomes more mature,coordination among regulators,government and market participants is going to be essential,as will the proper collection and effective management of data to mitigate any risk of allega
142、tions of greenwashing.Volume of credit operations labelled in Brazil vs.world,by category or by use of the resourceFIGURE 61 Numbers may not add up due to rounding 2 Figures for Africa remain insignificant Source:Climate Bonds Initiative,Bloomberg NEF,Oliver Wyman analysisStrong representation of gr
143、een credit,with an increase in sustainable credit in recent years.where the increase between 2020 and 2021 stems from growth related to renewable energy and.despite green credit growth,Brazil is still far behind the volume of Asia and the EUCredit operations x categoryIn$billions1Credit operations v
144、s.resource usageIn$billions12016 2017 20182.40.520190.44.920201.0201512.520210.64.25.21.320220.51.12.30.22.95.617.011.23.5SocialSustainableGreenTransition0.50.60.61.120191.70.70.50.90.11.7202010.61.81.92.120214.72.00.420150.20.10.11.00.120161.120221.22017 20180.52.30.22.95.617.011.21.1Green bonds gl
145、obally2In$billions,20152022160.667.112.825.848.726.519.648.566.961.53.620.835.538.962.752.776.6201520164.020172.42018120.35.22019162.910.92020143.3294.39.1103.92021133.4228.63.1202237.174.9149.1157.1256.0289.2551.0442.0Asia PacificEULatAmNorth AmericaChanges in regulatory framework for acceptance of
146、 renewables into the electricity grid0.4+205%0.20.1RenewablesCorporateAgricultureInfrastructureEducationMPMEWasteWater and treatmentOthers1.81.81.6Finding Pathways,Financing Innovation:Tackling the Brazilian Transition Challenge17In February 2022,Volkswagen do Brasil and the Brazilian bank Bradesco
147、signed an agreement to raise bank debt through export credit notes linked to environmental,social and governance(ESG)commitments,making the vehicle manufacturer the first to launch a sustainable debt security in the country.This transaction was worth BRL 500 million($100 million)over three years and
148、 is linked to the commitment to reduce CO2 emissions from fossil origin in operations and increase the participation of women in leadership.28 Volkswagen do Brasil has committed to raising the proportion of women in leadership positions from 14%to 26%and in management positions from 9%to 25%by 2024.
149、In addition,the company has pledged to increase to 20%the share of biomethane in the total gas consumed in its plants and to transfer 12%of its CO2 emissions from fossil to biogenic in the production process.29CASE STUDY 2Volkswagen do Brasil:Developing a sustainable debt securitySince 2017,Klabin,a
150、 Brazilian pulp and paper producer,has been issuing green bonds aiming to reinforce the companys commitment to sustainable development.The first issue in 2017 was worth$500 million with a 10-year maturity,the second in 2019 was also worth$500 million with a 10-year maturity,and in 2020 an additional
151、 funding round of$200 million was issued to the market with maturity in 2049 making Klabin the first Brazilian company to issue a green bond with a 30-year maturity.The sustainability-linked bonds are aligned with three United Nations Sustainable Development Goals(solid waste reuse and recycling;wat
152、er consumption;and biodiversity conservation),in line with the companys growth plan and subject to interest rate adjustments,which are dependent on achieving specific targets by 2030.CASE STUDY 3Klabin:Placing Brazils first green bond with a 30-year maturityAs discussed by participants of the Forum-
153、facilitated workshops,the success of any sustainable financing model depends on the underlying operations profitability and attractiveness.However,several significant challenges remain:1.A challenge highlighted by companies is that,in many cases,sustainable finance instruments become less attractive
154、 in terms of cost of capital compared to traditional products.This is due to the additional costs associated with sustainable credit,such as paying for second-party opinions(SPOs)to verify alignment with green,social and sustainable principles,in addition to SPTs and KPIs,without related incentives.
155、In addition,sustainable financing processes can be more time-consuming than conventional ones,as they are complex and require efficient alignment between the involved parties.2.From companies point of view,the commitment to KPIs can be complex due to data collection requirements and necessary govern
156、ance mechanisms.However,for large companies,sustainable loans offer benefits that go beyond the rates to be paid,and can be a way to improve and differentiate the companys image for investors and society.3.Another limitation of sustainable financing in Brazil is the risk of greenwashing due to the l
157、ack of a national taxonomy on climate,social and environmental contributions or in situations where the opinion of the SPOs is not always consistent.4.When considering a taxonomy,international standards serve as a good reference point but do not fully address conditions on the ground in Brazil,thus
158、creating a barrier to investment.Therefore,Brazil must develop its own taxonomy,following the example of the European Union and countries such as China,Colombia and Mexico,which have already established their own taxonomies.5.Understanding Brazilian specificities presents a significant challenge for
159、 sustainable financing.One possible solution would be for financial institutions to adopt internal climate-risk models,allowing them to reap the long-term benefits of risk reduction in companies that Finding Pathways,Financing Innovation:Tackling the Brazilian Transition Challenge18receive related i
160、nvestments.In addition,the Central Bank of Brazil plays an important role in accelerating the sustainability agenda,having joined the NGFS and become a supporter of the Task Force on Climate-related Financial Disclosures(TCFD).Recently,the Central Bank started requiring financial institutions to pub
161、lish social,environmental and climate risks and opportunities(GRSAC),in line with TCFD recommendations.These measures aim to promote transparency and proper management of climate risks,boosting financial sustainability and resilience to climate change.6.For financing instruments to evolve,it is nece
162、ssary to improve access to information and data on the climate,social and environmental performance of companies and projects.This allows investors to more accurately assess the risks and opportunities related to the climate transition,making it easier to make decisions and direct financial resource
163、s.7.Government grants may be a viable option to stimulate investment as they encourage research,development and implementation of pilot projects.Blended finance(a combination of public and private resources),through the creation of impact funds,can be an effective approach to attract private investm
164、ent aimed at initiatives that contribute to reducing emissions,adapting to climate change and developing clean technologies.8.Another instrument is green venture capital,which involves funding start-ups and technology companies that develop innovative and sustainable solutions.This type of venture i
165、nvestment can drive innovation and accelerate the development and commercialization of emerging technologies.The financial sector plays a vital role in developing new approaches to address the challenges and seize the opportunities presented by the decarbonization of the economy.To realize the full
166、potential of the sector in the climate change agenda,financial players will need to implement new approaches to access new sources of capital and offer new products,including:1.Adopting a comprehensive approach to assess and manage climate-related risks,including physical and transition risks,to mak
167、e informed decisions.2.Reviewing and updating credit policies to align with sustainable financing practices;for instance,incorporating climate,environmental and social considerations into the credit process.3.Engaging and providing incentives for their commercial teams to prioritize sustainable fina
168、ncing.4.Structuring a diverse range of innovative products and services to meet the evolving needs of sustainable finance,which can involve collaboration/co-creation with clients.5.Educating relationship managers,bankers and brokers on the climate challenge and technologies that offer solutions,and
169、training them in the economics of climate transition.The role of government and multilateral agencies is also extremely important in supporting the financial flows required to transition to a greener economy.Governments will need to identify the right type of incentives in terms of regulation and ot
170、her mechanisms such as potential tax relief,subsidies,guarantees,de-risking mechanisms,etc.Central banks,insurance supervisors and securities regulators should issue guidelines and monitor climate risks in the sector.Examples of actions taken elsewhere include the climate stress-testing exercise dem
171、anded by the European Central Bank(ECB)and the climate disclosure initiatives required by the EU Commissions Corporate Sustainability Reporting Directive(CSRD)and the US Securities Exchange Commission(SEC).In Brazil,and aligned with global initiatives,the Brazilian Central Bank published guidelines
172、in 2021 for banks on disclosing their exposure to climate risk in their operations and portfolio.The Brazilian insurance regulator SUSEP issued similar guidelines in 2022.Finally,multilateral agencies will need to work closely with commercial banks and act as partners,supporting new funding mechanis
173、ms as well as the means to de-risk commercial operations.In 2022 the Brazilian Development Bank(BNDES),which manages the Amazon Fund,announced a series of innovative operations such as a guarantee fund to facilitate credit from commercial banks to entrepreneurs who had difficulty obtaining guarantee
174、s to raise funds for energy efficiency efforts by SMEs.Finding Pathways,Financing Innovation:Tackling the Brazilian Transition Challenge19Brazils unique profile and the role of policy-makers4Brazils main sources of GHG emissions are land-use change,forests and agriculture.The profile of Brazils GHG
175、emissions differs from the world average in a number of ways.As presented in Figure 7,while globally the generation of electricity,industry and the oil and gas sector represent more than half of all emissions,in Brazil the main sources of emissions come from changes in land use,forestry and agricult
176、ure.Land use,land-use change and forestry(LULUCF)BOX 4The LULUCF sector covers emissions and removals of GHGs resulting from direct human-induced land use,land-use change and forestry activities.LULUCF is the only sector in the national greenhouse gas inventory where there can be both emissions and
177、removals of CO2.These are assessed by classifying all land according to six categories of use:forest land;cropland;grassland;wetlands;settlements;and other land.A seventh category covers harvested wood products.Carbon is sequestered by forestry and grassland,and afforestation plays a very important
178、role as carbon sink.Forests sequester carbon in dead and living vegetation(below and above ground)and in the soil.On the other hand,carbon losses occur in response to alterations in the processing of the stocks of biomass and organic matter,such as converting forest to pasture,as well as the burning
179、 of forest.The reason for the low share of energy,industry and transport in the Brazilian GHG footprint is a series of investments made in the past.These investments,among others,include:the construction of hydropower plants and transmission lines integrated into the national grid;the consolidation
180、of the second largest biofuels market in the world,including an efficient network of ethanol producers and an extensive and capillary retail network(fuel stations);proven technology and production capacity for manufacturing light-duty vehicles running on flex fuel engines(e.g.gas and/or ethanol);and
181、 intensive research and advanced technology on crops and land productivity developed by the Brazilian Agricultural Research Corporation(Embrapa).Explainer:The Brazilian Agricultural Research Corporation(Embrapa)BOX 5Embrapa is a public company,linked to the Ministry of Agriculture and Livestock,crea
182、ted in 1973 to develop the technologies needed to sustain the nations agricultural and livestock industry.The initiative,which aims to guarantee food security,plays a prominent role in the international food,fibre and energy market.As a result,different sectors in Brazil such as energy,aluminium,tra
183、nsport,cement and manufacturing enjoy a lower carbon intensity when compared to the same sectors in other countries.This represents an opportunity for Brazil to become a global hub of green solutions that also carry potential for other nations.These solutions include clean energy,low-carbon commodit
184、ies and industrial products and nature-based carbon offsets.Finding Pathways,Financing Innovation:Tackling the Brazilian Transition Challenge20Interestingly,the investments that led the Brazilian economy to enjoy a competitive advantage in terms of carbon intensity over other global economies were n
185、ot intended for climate change mitigation strategies.Rather,they reflected challenges stemming from energy and food security concerns given the countrys lack of oil and gas resources,import restrictions resulting from a lack of foreign currency reserves,foreign trade imbalances and other macroeconom
186、ic constraints that Brazil faced in the 1970s and 1980s.Regarding public policy,it is essential to recognize that although the country currently enjoys a favourable position,it will only hold it only with a clear strategy and direction for new investments.Other economies facing steeper decarbonizati
187、on challenges for industry and energy are already investing significant amounts of capital in technology,infrastructure and human resources to capture the opportunities of a greener economy.For instance,EU countries decided to devote at least 37%of the financing they receive under the 672.5 billion(
188、approximately BRL 3.36 trillion)Recovery and Resilience Facility to investments and reforms that support climate objectives.30 In August 2022,the US government signed the Inflation Reduction Act(IRA)31 to provide substantial incentives for clean energy,transportation and infrastructure.Out of the$79
189、0 billion(approximately BRL 3.95 trillion)IRA budget,$387 billion(approximately BRL 1.935 trillion)will be invested in climate programmes,which are expected to reduce GHG emissions by 1 billion metric tons in 2030.In Latin America,Chile is ahead of Brazil in terms of a clear strategy and related ini
190、tiatives.As an example of public policy aimed at capturing economic development opportunities arising from a greener global economy,Chile announced a National Green Hydrogen Strategy in 2020,with the objective of producing the worlds cheapest green hydrogen by the end of the decade and being one of
191、the three top exporters globally by 2040.The energy ministry projects that,through a mixture of public and private funds,investment in green hydrogen and other derivatives could reach BRL 225 billion($45 billion)by 2030 and BRL 1.65 trillion($330 billion)by 2050.32Brazilian policy-makers must now ar
192、ticulate a national strategy and propose the right set of initiatives to ensure that the country will be able to maintain its current leadership position.Besides promoting and facilitating a new cycle of investments to guide the country towards a greener economy,it is equally important that the gove
193、rnment acts to address the most significant sources of GHG emissions:land-use change,forestry and agriculture.Brazilian and global GHG emissionsFIGURE 7GHG emissionsGtCO2e7%9%12%8%16%23%10%21%17%49%5%World5%2%Brazil60.52.44%4%ForestAgricultureEnergyIndustryTransportOil and gasConstructionWasteMariti
194、meMining7%Source:SEEG and ClimateWatchFinding Pathways,Financing Innovation:Tackling the Brazilian Transition Challenge21Brazil is expected to play a key role at the intersection of global food security and climate change.The country can lead in the application of efficient agricultural techniques t
195、o ensure food security in a scenario of increased global demand.At the same time,in the context of GHG emissions,deforestation in the Amazon accounts for a large volume of emissions as tropical forests contain high amounts of stored carbon.Brazil has implemented several measures to deal with the def
196、orestation challenge,such as the creation of the Amazon Fund in 2008.The fund plays a vital role in reducing deforestation,as it seeks to raise funds for actions to prevent,monitor and combat deforestation and to promote the conservation and sustainable use of natural resources within the Amaznia Le
197、gal region.Over the past 10 years,the fund has disbursed more than BRL 1 billion($200 million)to 103 projects.On the other hand,Brazils commitment to the Paris Agreement has been questioned,mainly due to the countrys recent rising deforestation rates.According to data from Brazils National Institute
198、 for Space Research(INPE),rates have fluctuated over the years,with a peak in the early 2000s,followed by a decline up to 2012.However,rates have been rising again in recent years,reaching their highest levels in over a decade in 2021.Deforestation in Amaznia Legal increased by 7.1%in 2020 compared
199、to the previous year and been rising since 2012.Building better policies for forest landscapesExplainer:Amaznia LegalBOX 6Amaznia Legal encompasses the nine states of Brazil that belong to the Amazon basin(Amazonas,Par,Acre,Rondnia,Roraima,Amap,Maranho,Tocantins and Mato Grosso).The federal governme
200、nt established it via law in 1953,bringing together regions with identical characteristics,aiming to better plan the Amazon regions socioeconomic development.Deforestation rate in Amaznia Legal per year(in km2)33FIGURE 8Source:INPE,Brazilian Government 2030 Zero Deforestation,Amazon Fund,Projection
201、of an economic and deforestation scenario for the Brazilian Legal Amazon between 2006 and 2030Amazons deforestation rateIn 1,000 km786532620082009200000222023202420252026202720282029203071718HistoricalZero defore
202、station 2030Total projected growth in deforestation in the“historical growth”scenarioEffort needed to fill the gapFinding Pathways,Financing Innovation:Tackling the Brazilian Transition Challenge22The main drivers of the increase in deforestation in Amaznia Legal in recent years include:The relaxati
203、on of command-and-control policies implemented in the past,resulting in low monitoring of land use and low fines for deforestation The abandonment of policies and financing for sustainable development activities in the region The lack of measures to combat illegal land occupation activities,includin
204、g illegal mining and land-grabbing,irregular deforestation and other criminal activities in the Amazon regionSignalling a change in posture and a return to good practices,in November 2022,at the 27th United Nations Climate Conference(COP27),Brazil,the Democratic Republic of the Congo and Indonesia a
205、nnounced an initiative to try to channel international funding to forest protection efforts.The plan left many details unresolved,but Brazils return to discussions on sustainable policies was seen as very positive.Reducing deforestation improves the quality of human life and benefits the ecosystem o
206、verall,and can contribute to sustainable economic development through forest conservation,the generation of carbon credits and the creation of green jobs.Success in reducing deforestation results from a cross-sectoral agenda and the establishment of policies favourable to controlling deforestation r
207、ates.Currently,the federal government is signalling the resumption of several of these policies,adopted in the first decade of the century.Agricultural activities are the second main source of GHG emissions in Brazil and represent a significant share of Brazilian gross domestic product(GDP).GHG emis
208、sions from agriculture in Brazil are considerably higher than in other economies that have a large representation of agriculture in GDP,such as India and China,indicating that in the agricultural space the country has much room for improvement.A particular challenge is the importance of animal prote
209、in production for the country,especially cattle,as one of the largest sources of GHG is enteric fermentation,which is responsible for more than 60%of emissions in the sector,according to the System for Estimating Greenhouse Gas Emissions(SEEG).As well as generating a significant portion of GDP,the a
210、gricultural sector has been growing in recent years at faster rates than other sectors of the economy.In parallel with the recent growth,there has been an advance of the farming frontier at the expense of forest areas despite the large amount of arable land already available and the potential to rec
211、over degraded areas for agriculture.In this context,the Forestry Code(Law 12.651/2012)is an important instrument to combat sectoral emissions.Since 2012,this law has established norms for the protection of native vegetation in areas of permanent preservation,legal reserve,restricted use,forest explo
212、itation and related matters.As presented in Figure 4,investment of more than BRL 330 billion($66 billion)in sustainable agriculture and livestock practices is expected up to 2030.Several low-carbon practices are being discussed for the decarbonization of agriculture,including ICLF,recovery of degrad
213、ed pastures,intensive livestock termination(slaughtering animals for meat at a younger age),biological nitrogen fixation in crops,use of bio-inputs,no-tillage systems and genetic improvement of animals,pastures and cultivars.Historically,the commitment to emissions targets by large rural producers h
214、as been limited,with access to sustainable practices,especially for small and medium-sized rural producers,negligible.More recently,an important movement has gained momentum.Led by larger companies in the food value chain,it involves them actively mapping,tracking and monitoring their supply chains,
215、as well as financially supporting producers to meet zero deforestation commitments and promote decarbonization practices associated with higher productivity.Shifts to maximize the impact of the agriculture sectorFinding Pathways,Financing Innovation:Tackling the Brazilian Transition Challenge23The B
216、razilian government has deployed programmes focused on sustainable agriculture,such as the National Program for the Strengthening of Family Agriculture(Pronaf)and the ABC Plan(see Case study 4).These programmes,which offer credit lines with special conditions for rural producers who adopt sustainabl
217、e practices,aim to reduce GHG emissions and conserve natural resources.For the 2022/2023 harvest,the investment under the ABC Plan is BRL 4.7 billion($940 million).Further progress and advances in sustainable agriculture and livestock practices in Brazil will require:Government to implement tax ince
218、ntive policies,such as tax exemptions or reductions for equipment,inputs and technologies related to sustainable agriculture.These tax incentives would make investments more accessible,encouraging producers to adopt measures that contribute to the mitigation of climate change and the preservation of
219、 the environment.Financial institutions to offer sustainable agricultural producers specific credit products that have favourable features,such as lower interest rates and longer durations or a grace period.These products should be supported through public funds,e.g.in the form of blended finance st
220、ructures.Green financing will play a key role in supporting sustainable agriculture in Brazil,providing the necessary resources for the adoption of practices and technologies aimed at reducing emissions and promoting sustainability in the agricultural and livestock sectors.Investors and investment f
221、unds focused on social and environmental impacts to direct resources towards sustainable agriculture projects in Brazil.Such investments would aim not only at producing financial returns but also at generating socioenvironmental benefits,contributing to the development of a more sustainable and clim
222、ate-resilient agricultural sector.Finally,collaboration between the public and private sectors to enable the financing of projects and initiatives focused on sustainable agriculture.Through partnerships,governments,banks and organizations can combine resources and expertise to support the implementa
223、tion of sustainable practices,the development of responsible supply chains and the promotion of technological innovation.The Sectorial Plan for Adaptation and Low Carbon Emission in Agriculture,better known as the ABC Plan,is a Brazilian government programme whose main objectives are the adoption of
224、 more sustainable practices in agriculture and livestock,a reduction in GHG emissions and an increasein the capacity of agricultural and livestock activities to adapt to climate change.The plan was structured in seven programmes later ratified in the National Policy on Climate Change PNMC(no.12,187
225、of December 2009).The ABC Plan offers several financing lines with below-market interest rates and longer payment terms to encourage producers to adopt these practices.In addition to promoting production systems better aligned with lower CO2 emissions and preserving the environment,the ABC Plan prom
226、otes a portfolio of practices and technologies that take into account economic and social factors generating business opportunities for rural producers through increased productivity,job creation and more efficient use of resources.CASE STUDY 4The ABC PlanParticipants in Forum-led workshops highligh
227、ted the following important actions to be taken by policy-makers and regulators in Brazil:Formulation of a national strategy to consolidate Brazils value creation potential in a green economy by mobilizing and aligning actions of the public and private sectors Implementation of effective actions to
228、combat illegal deforestation,thereby re-establishing the countrys credibility on the international stage Establishment of a national taxonomy and sectoral decarbonization curves aligned with assumed commitments(NDCs)that can serve as a guide for the development of sustainable projects and new techno
229、logies Creation of the conditions needed to allow a model that integrates the regulated(ETS)and the voluntary carbon markets in Brazil(in line with articles 6.2 and 6.4 from the Paris Agreement)Development of public policies to encourage climate transition projects with a focus on hard-to-abate econ
230、omic sectors,including supply chains Sourcing of national and international capital to finance projects attracted by a stable business environment with clear rules and legal securityFinding Pathways,Financing Innovation:Tackling the Brazilian Transition Challenge24Creating networks to build societal
231、 resilience5A successful transition strategy requires input from civil society,whose members are affected by climate change and hold the keys to overcoming it.Any countrys transition journey cannot be undertaken successfully by public-and private-sector leaders alone.It requires the buy-in of civil
232、society,too.This,of course,is also true in the case of Brazil.Awareness of and support for sustainability practices have great relevance in reducing the countrys GHG emissions.In addition,the population can pressure companies and the government by demanding the adoption of more environmentally respo
233、nsible positions and concrete actions to combat climate change.The journey to engaging civil society starts within organizations.Companies need to address internal challenges before reaching out to external stakeholders.Organizations face challenges related to knowledge about climate and sustainabil
234、ity,as well as how best to approach the topic.In some cases,sustainability is treated only as a trend rather than being integrated into the business.The lack of knowledge and alignment of leaders within organizations in relation to the subject often results in limited and insufficient decision-makin
235、g in the face of the risks and opportunities raised by climate change and sustainability.It is critical that organizations recognize the importance of this issue and strive to enhance their knowledge and commit to the climate agenda.The challenges for organizations are compounded by the following:1.
236、Limited availability of talent with climate and sustainability expertise and experience.Large companies compete for talent in a market where the topic is gaining more and more prominence,while sustainability is still not fully addressed in universities.Further,SMEs have limited resources to attract
237、and develop these professionals.Multinational companies face the challenge of translating global climate guidelines to conditions on the ground in Brazil and communicating the Brazilian context to global leaders.It is therefore essential to develop internal knowledge and align sustainability ambitio
238、ns with the companies core businesses.This can be done through incentive programmes,bonuses and recognition of environmental,social and corporate governance(ESG)initiatives.In addition,there is the potential to realize mutual benefits among large companies,customers and suppliers through the develop
239、ment of tools for disseminating knowledge about sustainability.2.When it comes to customer and consumer relationships,businesses face the challenge of communicating climate change and ESG issues in an accessible way,avoiding the use of technical jargon.The lack of prioritization of sustainability in
240、 education is one of the main barriers to disseminating this theme broadly.However,there is an increasing number of important initiatives by organizations developing tools and applications that aim to raise awareness and encourage more active participation of civil-society groups in the climate tran
241、sition.For example,Natura&Co,a Brazilian cosmetics company,offers benefits to consumers who return their empty packaging for recycling,while Ifood,a food delivery platform,suggests an additional charge to customers orders to offset emissions generated during delivery.Such tools have significant pote
242、ntial to generate positive impact,although some companies express concerns about the risk of being perceived as“activists”.It is important to find the right balance to engage consumers effectively without compromising business reputation.3.Within the public sector,it is common for climate and sustai
243、nability issues to be relegated to the bottom of political and government agendas.Yet it is critical to position sustainability as a social priority and prioritize Finding Pathways,Financing Innovation:Tackling the Brazilian Transition Challenge25the education and development of individuals who can
244、support Brazils unrealized potential in developing a green economy.Although institutions such as the Brazilian Institute of the Environment and Renewable Natural Resources(IBAMA)and Embrapa have an important role in influencing companies and individuals in relation to climate and sustainability,in r
245、ecent years these institutions have had their decision-making power reduced.Increasing and enhancing the roles and responsibilities of such institutions is essential to promote changes in environmental and sustainability agendas in the public sphere.Large companies play a crucial role in advancing c
246、limate action across their value chains.Brazil has approximately 6.4 million micro,small and medium-sized enterprises.34 To educate suppliers about climate change,encourage emissions mitigation and promote contributions to a more sustainable and resilient value chain,large companies can take the fol
247、lowing steps:Set clear expectations:establish clear environmental and sustainability standards for suppliers,including targets for reducing GHG emissions.Expectations should be communicated effectively,emphasizing the importance of climate action and the need for collaboration.Supply-chain mapping a
248、nd transparency:work towards mapping entire supply chains to identify emissions hotspots and prioritize action areas.This helps in identifying high-emitting suppliers and enabling companies to engage with them more effectively.Provide guidance and support:offer guidance and support to suppliers by s
249、haring best practices,technical expertise and resources for implementing emissions-reduction measures.This can include providing access to training programmes,workshops and tools that help suppliers measure,manage and report their emissions.Collaborate and share knowledge:facilitate collaboration am
250、ong suppliers by creating platforms for knowledge-sharing and fostering partnerships.This can include hosting supplier forums,workshops or webinars where suppliers can learn from each others experiences,discuss challenges and explore innovative solutions.Incentives and rewards:create incentives and
251、recognition programmes to motivate suppliers to adopt climate-friendly practices.These can include preferential treatment for suppliers with strong environmental performance.Capacity-building and financial support:support suppliers in building capacity to address climate change by offering financial
252、 support,such as grants,loans or investment in supplier sustainability projects.This helps in overcoming financial barriers and encouraging suppliers to invest in emissions-reduction initiatives.As the worlds most biodiverse country and home to the majority of the Amazon,Brazil has great potential t
253、o enhance sustainable development by unlocking decarbonization pathways.This will require the right finance mechanisms in place to redirect capital flows and align incentives with a net-zero and nature-positive economy.Natura&Co places great value on the power of relationships and believes the priva
254、te sector has an important role in engaging the full value chain in this journey to ensure a multistakeholder,inclusive and collaborative approach.Crucially,we must ensure that the voice of civil society is heard and adequately reflected in decision-making.We are committed to joining forces with oth
255、ers to create a better future for Brazil.Marcelo Behar,Vice-President,Sustainability and Group Affairs,Natura&CoFinding Pathways,Financing Innovation:Tackling the Brazilian Transition Challenge26Conclusion and call to actionBrazil has a major global role to play in advancing sustainability policies.
256、Transitioning to net zero requires enormous investments worldwide over the next three decades.According to an International Monetary Fund report,35 the global economy will require between$6 trillion and$10 trillion in public and private investments to mitigate climate change in the next decade alone
257、,which equates to a cumulative 6%to 10%of annual global GDP.Brazil shares many of the challenges that the global community is facing in its attempt to achieve sustainability and decarbonization goals.In parallel,the set of opportunities and challenges that Brazilian public-and private-sector leaders
258、 face is also unique,reflecting Brazils distinct realities.The country faces several problems,including high deforestation rates,elevated business informality and lack of financial resources from local governments due to fiscal constraints and legal uncertainty.However,Brazil also enjoys distinct ad
259、vantages in addressing climate issues:these include a mostly renewable electricity matrix and the highest concentration of biodiversity on the planet.This unique endowment not only provides opportunities but also presents a tremendous responsibility.Brazil must act strategically,guided by adequate g
260、overnment support and coordination,to harness its full potential and capture existing opportunities.The transition to a carbon-neutral economy presents Brazil with the opportunity to unlock investments in renewable energy and expand itsinfluence on the international stage.The country has a crucial r
261、ole in advancing sustainability policies and,although there is a long way to go,if Brazil follows the right path in the coming years,it could position itself as one of the first economies to reach net-zero emissions and thereby boost its development and contribute to global progress in combatting cl
262、imate change.Other emerging economies are certainly looking to Brazil for inspiration and guidance.They are closely observing how the largest economy in Latin America manages to balance its sustainability efforts and other at times competing development priorities.It is thus of paramount importance
263、that Brazil gets the transition right.As this paper outlines,such ambitious goals will require exploring pathways,identifying appropriate financing instruments and educating professionals.It also involves an exchange of best practices with international institutions,an alignment of policies to world
264、wide standards where fit and the global flow of capital to support Brazils transition.The World Economic Forum will continue to provide a platform for business leaders,policy-makers and civil-society leaders in Brazil to overcome challenges in the countrys transition and partner with global peers.Pr
265、ivate-and public-sector leaders should make use of this platform and build on the initial findings of this paper.Finding Pathways,Financing Innovation:Tackling the Brazilian Transition Challenge27ContributorsAcknowledgementsMariana CamposConsultant,Oliver Wyman(Marsh McLennan)Kai KellerBusiness Enga
266、gement Lead,Regional Strategy and Partnerships,World Economic ForumMarie Penelope NezurugoResearch and Analysis Specialist,Center for Financial and Monetary Systems,World Economic ForumFelipe NicolaEngagement Manager,Oliver Wyman (Marsh McLennan)Thales Panza de PaulaHead of Business Engagement,Latin
267、 America,World Economic ForumGuilherme XavierPartner,Oliver Wyman(Marsh McLennan)Ana Carla AbroChief Business Development Officer,B3 Adriana Freitas AlbaneseHead of Investor Relations,AegeaMarina AlbuquerqueSustainability Analyst,Banco BTG PactualFilipe AlvarezSustainability Manager,Azul Linhas Area
268、s BrasileirasFelipe AndradeSouth America Treasury,General MotorsBruno AranhaManaging Director,Brazilian Development Bank(BNDES)(20212023)Derek BaraldiHead of Sustainable Finance,World Economic Forum David BargueoClimate Officer Brazil,US Department of StateAna Luisa Giacomini BatistellaESG Product M
269、anager,Ita Unibanco Carolina BattocioSenior Trade Finance and Credit Manager,SyngentaAlessandra BeckeOperations Analyst,International Finance Corporation(IFC)World Bank GroupAna Marcela di Dea BergamascoEnvironmental Analyst,Petroleo Brasileiro PETROBRASLeonardo Paulino BetanhoManager,B3Rodrigo Borg
270、esEngagement Manager,Oliver Wyman (Marsh McLennan)Karina BugarinHead,Economic Policy,Talanoa InstituteBruna CesarSenior Manager ESG,Patria InvestmentsFabiana CostaSustainability Senior Manager,Banco BradescoYolanda CostaHead of Risk&Vendor Management,General MotorsRaquel Marques da CostaAgriculture&
271、Forest Finance Specialist,UNEP Finance InitiativePatricia Ellen da SilvaPartner and Head Brazil Office,SYSTEMIQAndr De AngeloCountry Director,AccionaAlexandre Peixoto de OliveiraRelationship Manager,Banco BradescoThe development of this paper was supported by the project team:The project team offers
272、 its special gratitude to the participants in expert workshops and all public-sector,academic and senior industry participants who contributed their insights to this publication.Finding Pathways,Financing Innovation:Tackling the Brazilian Transition Challenge28Martha de SCo-Founder and Chief Executi
273、ve Officer,VERT CapitalArnaud DusaintperePartner,Oliver Wyman(Marsh McLennan)Marcia FerraresiManaging Director,Patria InvestmentsFernanda S Freire FigliouloPartner,Machado,Meyer,Sendacz and Opice AdvogadosMarco Antonio FujiharaExecutive Coordinator of the Brazilian Forum on Climate Change,Aggrego Co
274、nsultoresMaria Carolina FujiharaChief Executive Offier,Sinai TechnologiesIvo GodoiPartner,Oliver Wyman(Marsh McLennan)Fernando GomezHead of Resource Systems and Resilience,World Economic ForumMarina GontijoPrincipal,Oliver Wyman(Marsh McLennan)Pablo HabererPartner,Oliver Wyman(Marsh McLennan)Leila H
275、arfuchManaging Partner,AgriconeRicardo Eyer HarrisHead of Regulation,Deputy Governors Office,Central Bank of BrazilVinicius Santos HilbertFinancial Operations Manager,Marfrig Global FoodsViviane Otsubo KwonSuperintendente de Desenvolvimento de Negcios Sustentveis,Banco SantanderWellyngton LabesSenio
276、r Sustainability Analyst,Ita UnibancoJulio Costa LeiteDeputy Managing Director,Socioenvironmental and Public Management Division,Brazilian Development Bank(BNDES)Fabiana LopesHead of Sustainability,AccionaMaria Belen LosadaHead of New Business Development Global Markets&Treasury,Ita UnibancoKeyvan M
277、acedoSustainability Director,Natura&CoAngelica MartinsAdviser,Centrais Eltricas Brasileiras EletrobrasJoana MartinsTreasurer,VolkswagenVicente Loiacono NetoChief Risk and Compliance Officer,Companhia Paranaense de Energia(COPEL)Carolina Ocampo MayaHead of ESG,Patria InvestmentsMariana OiticicaCo-Hea
278、d of ESG&Impact Investing,Banco BTG PactualMarcelo PasquiniHead of Sustainability,Banco BradescoPaulo PianezHead of Sustainability,Marfrig Global FoodsCarlos Leiria PintoBrazil Country Manager,International Finance Corporation(IFC)World Bank GroupJos PugasPartner and Head of ESG,JGPMaria Izabel Maga
279、lhes Gomes RamosManager Corporate Social Responsibility,Petroleo Brasileiro PETROBRASLucas RibeiroAssociate Consultant,Oliver Wyman (Marsh McLennan)Luciana RibeiroCo-Founder and Managing Partner,EB CapitalGuilherme RincoSustainable Business Analyst,Banco BradescoCesar Tarabay SanchesHead of Sustaina
280、bility,B3Lucio Vicente SilvaSustainability Director,CarrefourJanaina SimonisTreasury Operations and PreviGM Investments Supervisor,General MotorsCynthia SisconettoPrincipal/Director,Vinci PartnersFinding Pathways,Financing Innovation:Tackling the Brazilian Transition Challenge29Daniella Feteira Soar
281、esSustainability Manager,Centrais Eltricas Brasileiras EletrobrasAngelica SobralAdviser,Centrais Eltricas Brasileiras EletrobrasKarla Bertocco TrindadePartner,Mau CapitalVeronica ValentiniSustainable Innovation Manager,Banco Santander ProductionBianca Gay-FulconisDesigner,1-Pact Edition Alison Moore
282、Editor,Astra ContentFinding Pathways,Financing Innovation:Tackling the Brazilian Transition Challenge30Endnotes1.World Economic Forum,Financing the Transition to a Net Zero Future:https:/www.weforum.org/projects/sustainable-banking.2.World Economic Forum,Chinas Climate Challenge:Financing the Transi
283、tion to Net Zero,21 July 2022:https:/www.weforum.org/reports/china-s-climate-challenge-financing-the-transition-to-net-zero/.3.Gov.br,Acordo de Paris:Contribuio Nacionalmente Determinada(in Portuguese),7 July 2023:https:/www.gov.br/casacivil/pt-br/assuntos/conselhos-e-comites/comite-interministerial
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285、bal-outlook-on-financing-for-sustainable-development-2023-fcbe6ce9-en.htm.6.Empresa de Pesquisa Energtica,Matriz Energtica e Eltrica(in Portuguese):https:/www.epe.gov.br/pt/abcdenergia/matriz-energetica-e-eletrica.7.ANP,Sntese Mensal de Comercializao de Combustveis(in Portuguese):https:/www.gov.br/a
286、np/pt-br/centrais-de-conteudo/publicacoes/sinteses/scc/2022/sintese-volumes-dezembro-2022.pdf.8.Sistema Nacional de Informaes Florestais,Florestas Naturais(in Portuguese):https:/snif.florestal.gov.br/pt-br/os-biomas-e-suas-florestas.9.World Economic Forum,Financing the Transition to a Net Zero Futur
287、e:https:/www.weforum.org/projects/sustainable-banking.10.World Economic Forum,First Movers Coalition:https:/www.weforum.org/first-movers-coalition.11.World Economic Forum,Tropical Forest Alliance:https:/www.weforum.org/projects/tfa-2020.12.Climate Watch,Brazil:https:/www.climatewatchdata.org/countri
288、es/BRA.13.International Monetary Fund,GDP,Current Prices:https:/www.imf.org/external/datamapper/NGDPDWEO/OEMDC/ADVEC/WEOWORLD/BRA.14.Net-zero emissions refer to the overall balance of GHGs produced and GHG emissions taken out of the atmosphere.15.United Nations Climate Change,Nationally Determined C
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290、cologica/#:text=Minist%C3%A9rio%20da%20Fazenda%20deve%20apresentar%20em%20maio%20Plano%20de%20Transi%C3%A7%C3%A3o%20Ecol%C3%B3gica&text=Com%20o%20objetivo%20de%20impulsionar,medidas%20para%20os%20pr%C3%B3ximos%20meses.17.Poder 360,Saiba Quais So os Principais Responsveis Pelas Mudanas Climticas(in P
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293、t.21.Instituto Talanoa,Clima e Desenvolvimento:Vises para o Brasil 2030(in Portuguese):https:/institutotalanoa.org/wp-content/uploads/2022/11/3aa71e_0410f2b9360449669880a7c2b1746b31.pdf.22.The White House,Inflation Reduction Act Guidebook:https:/www.whitehouse.gov/cleanenergy/inflation-reduction-act
294、-guidebook/#:text=The%20Inflation%20Reduction%20Act%20specifies,mode%20or%20condition%2C%20low%20or.23.US Department of State,First Movers Coalition Announces Expansion,9 November 2022:https:/www.state.gov/first-movers-coalition-announces-expansion/.24.Climate Champions UNFCCC,Whats the Cost of Net
295、Zero?,3 November 2021:https:/climatechampions.unfccc.int/whats-the-cost-of-net-zero-2/#:text=%24125%20trillion%20of%20climate%20investment,put%20the%20world%20on%20track.25.Not including investments related to climate adaptation and resilience in a scenario of continued global warming.Finding Pathwa
296、ys,Financing Innovation:Tackling the Brazilian Transition Challenge3126.The expected investment figures were based on detailed sectoral points of view covering the main emission sources,scientific decarbonization pathways,technology routes and companies commitments.27.World Economic Forum,Financing
297、the Transition to a Net Zero Future:https:/www3.weforum.org/docs/WEF_Financing_the_Transition_to_a_Net_Zero_Future_2021.pdf.28.Valor,Volkswagen Fecha Acordo com Bradesco para Dvida com Metas ESG(in Portuguese):https:/ Newsletter,VW Fecha Acordo com Bradesco para Dvida com Metas ESG(in Portuguese):ht
298、tps:/.br/news/1369;Volkswagen Newsletter,Volkswagen Apresenta sua Estratgia Way to Zero(in Portuguese):https:/.br/news/1054.30.European Commission,Finance and the Green Deal:Investing in a Green Future:https:/commission.europa.eu/strategy-and-policy/priorities-2019-2024/european-green-deal/finance-a
299、nd-green-deal_en.31.The White House,Inflation Reduction Act Guidebook:https:/www.whitehouse.gov/cleanenergy/inflation-reduction-act-guidebook/#:text=The%20Inflation%20Reduction%20Act%20specifies,mode%20or%20condition%2C%20low%20or.32.International Monetary Fund,Chiles Bet on Green Hydrogen:https:/ww
300、w.imf.org/en/Publications/fandd/issues/2022/12/country-case-chile-bet-on-green-hydrogen-Bartlett.33.National Institute for Space Research(INPE),Estimativa de Desmatamento por Corte Raso na Amaznica Legal para 2021 de 13.235 Km2(in Portuguese):https:/www.gov.br/inpe/pt-br/assuntos/ultimas-noticias/di
301、vulgacao-de-dados-prodes.pdf.34.SEBRAE,Pequenos Negcios em Nmeros:https:/.br/sites/PortalSebrae/ufs/sp/sebraeaz/pequenos-negocios-em-numeros,12e8794363447510VgnVCM1000004c00210aRCRD.35.Nayara Machado,Mudana Climtica Desafio Crtico para o FMI,Diz Diretora-Geral(in Portuguese),epbr,11 April 2023:https
302、:/.br/mudanca-climatica-e-desafio-critico-para-o-fmi-diz-diretora-geral/.Finding Pathways,Financing Innovation:Tackling the Brazilian Transition Challenge32World Economic Forum9193 route de la CapiteCH-1223 Cologny/GenevaSwitzerland Tel.:+41(0)22 869 1212Fax:+41(0)22 786 2744contactweforum.orgwww.weforum.orgThe World Economic Forum,committed to improving the state of the world,is the International Organization for Public-Private Cooperation.The Forum engages the foremost political,business and other leaders of society to shape global,regional and industry agendas.