What is the role of the BNDES in Brazil’s energy transition?

On June 20, 2023, an event was held at the BRICS Policy Center to discuss the role of BNDES in Brazil’s energy transition. The event was attended by the manager of the BNDES sustainability department, Marta Bandeira, and by the professor of economics and coordinator of the Energy and Regulation Group, of the Fluminense Federal University (UFF) Luciano Losekann, with the coordination of the professor of IRI PUC-Rio and coordinator of the Laboratory of Financing and International Cooperation for Development (LACID), Maria Elena Rodriguez.

The event discussed Brazil’s progress and challenges for the low-carbon energy transition. The panelists agreed that the country has the conditions to be one of the global leaders in the energy transition process, but for this, medium and long-term planning is needed, as well as a lot of investment for the construction of a new industrial network adapted to this new reality, which is called neoindustrialization. It is in this scenario that the crucial role of development banks, such as BNDES for financing innovation and clean energy projects, lies. The role of the BNDES in structuring the chain and financing wind projects was highlighted, but the difficulties of decarbonizing transport and decarbonizing the country’s industrial network were also pointed out. Some possibilities that present themselves at this time for Brazil were discussed, such as the production of green hydrogen and offshore wind. However, the uncertainties that still loom for this energy transition to be fair and contribute to the country’s human and economic development were also raised.

The debate was both face-to-face and online and is available on the BRICS Policy Center’s YouTube channel.