Sep 23, 2020

 BNDES is giving more agility to the Climate Fund program, which offers credit for projects that reduce gas emissions. The program, which uses resources from the Ministry of Environment and provides funding for the acquisition of Efficient Machines and Equipment according to the Procel classification, photovoltaic generator systems, wind turbines up to 110 kw, buses and electric or hybrid trucks, among others, will release the loan through BNDES’s Online system, which automatically and immediately approves credit, provided that the order meets all requirements.

With funding of R$ 200 million and a maximum interest of 4% per year, credit can be applied for by individuals, individual microentrepreneurs and micro- and small-sized companies that want to purchase equipment that contributes to the reduction of greenhouse gas emissions. The line is already available at financial institutions and will remain until December 14. Between June 2018 and July 2020, this same subprogram disbursed all previously available resources (around R$ 200 million).

"This is an important opportunity for the resources of the Climate Fund to reach the top, for both micro and small companies, generating results for the reduction of emissions and efficiency gains", highlighted Petrônio Cançado, Credit Guarantee director at BNDES.

Machines and equipment with specific energy efficiency classification, some types of large electric or hybrid vehicles and buses powered by ethanol may be financed. Individuals may finance, for example, the installation of solar heating and distributed generation systems (photovoltaic panels, wind turbines and biogas generators). Financeable items must be of national manufacture and be accredited by BNDES.

The total effective cost for clients is limited to 4% per year. There is no minimum loan amount and BNDES can finance up to 80% of the equipment's value. The payment term will be up to 12 years, including a minimum grace period of three and a maximum grace period of 24 months. To apply for financing, the interested party must look for one of the public banks accredited by BNDES. 

Climate Fund Program – In operation by BNDES since 2011, the Climate Fund program enables the reimbursable financing of resources from the National Climate Change Fund (FNMC), in line with the Annual Plan for the Application of Resources established by the FNMC Management Committee. 

The Climate Fund has already allocated resources to support the development of the Rio de Janeiro VLT, the generation of energy from biogas at Aterro de Caeiras, in São Paulo, and the funding required to implement solar panels for more than 800 individuals and microenterprises, among other actions. Each project can receive a maximum of R$ 30 million every 12 months. These resources are granted by BNDES according to the BNDES Finame or BNDES Finem models.

This year, the Ministry of Environment (MMA) has already transferred R$ 580 million from the FNMC to BNDES for use with the Climate Fund. Currently, the fund's total portfolio has more than 860 approved financing operations totaling more than R$ 700 million, leveraging almost R$ 2 billion in investments. This year, funding will be primarily directed to investments in sanitation and solid waste recovery. The objective is to improve the quality of life of the population, focusing on urbanization, the environment, and sanitary conditions. 

About BNDES – Founded in 1952 and currently linked to the Ministry of Economy, BNDES is the main instrument of the Federal Government to promote long-term investments in Brazilian economy. Its actions are focused on socioenvironmental and economic impact in Brazil. BNDES offers special conditions for micro-, small- and medium-sized enterprises, as well as social investment lines, directed at education and health, family agriculture, sanitation and urban transport. In situations of crisis, BNDES acts in an anticyclical manner and assists in the formulation of solutions for the resumption of economic growth.