President’s government Louise Insio Lula da Silva She intends to collect two billion US dollars in financing for sustainable projects again Auction It will be announced on Monday (28) under the Eco Invest Brasil program, with a focus on deteriorating pasture recovery initiatives.
Treasury Secretary Rogerio Seron, who has the ability to practice the largest program in the world of deteriorating lands.
He said: “It has a huge environmental imprint, a huge international call, there are many people looking for us. We want, at the best scenario, like a million hectares. It is very aggressive.”
The new auction is part of the Eco Invest’s mixed financing line, which mixes public and private capital with the aim of cheaper financing and stimulating sustainable initiatives in the private sector, which also reduces the risk of exposure to exchange.
The official announcement of the event will be issued on Monday by the ministries of finance, agriculture, livestock and the environment. Auctional decree will be published this week, and the deadline for submitting proposals will be 45 days.
According to the Secretary, although the exact amount cannot be disclosed so that it does not disturb competition between the competing financial institutions, it is expected that the auction will provide about one billion US dollars in the catalyst for the climate fund, with the requirements of the leverage at least and a half.
The catalyst is a type of resource that seeks to stimulate additional investments from other sources.
The auction will overcome financial institutions that provide a greater capacity on private capital. Therefore, if the event succeeds, it will be added to the climate fund, which is worth at least $ 500 million in private resources, an amount that may increase depending on the competition.
For Ceron, there is an appetite for a financial crane that leads to financing a $ 1 billion and billion dollar capital.
There will also be a tie standard that will be considered the amount of hectares to be recovered.
According to the Minister of the Treasury, at least 60 % of the summons capital must be a result of fundraising, with the other 40 % and may be formed through local resources.
Food production
The new auction is part of the government’s environmental transformation plan and can lead the National Program for the Transformation of the December Pannals, which was launched in 2023 that focuses on recovering low productivity lands and expanding food production without increasing forest removal.
According to CERON, compliance with the goals of regions will be monitored by the government, but the conditions of the program also require financial institutions, with independent audits, to follow up the process.
Among the obligations created for the participants, half of the funded amount must be dedicated to the recovery of food production fields. The rest may be allocated to other initiatives such as wood production and biofuels.
The notification will allow funding for land retrieval with a moderate or severe deterioration in all vital areas, with the exception of Amazon, which have properties, and according to Ceron, it will have a specific notice in the coming months.
In addition, to prevent entirely to direct resources to the southern, southeastern regions and the Middle West, there will be 10 % capital allocation in projects in Katinga.
The program will also seek to stimulate the funds constitution by private institutions designated for the restoration of degraded lands. The implementation of these tools will lead to a lack of financing.
Eco Investt was launched last year by the Brazilian government to mobilize private capital through financing lines and exchange rate protection systems for green projects.
The first auction was made for “mixed financing” in October last year, and 45 billion dollars benefited from the availability of $ 7 billion in public capital.
According to Ceron, the value and cranes of the new auction is less because the first event did not focus on a specific type of project.
“The leverage must be lower because it is charged with recovering these deteriorating areas, and you cannot put a very high crane, which may make the final rate (of financing) very high in the end,” he said.
