Brazil

Brazil is a country of superlatives in terms of biodiversity and evergreen rainforest: The Brazilian tropical forests are 4.8 million square kilometres in size, around ten percent of the world’s surface area in this unique natural environment. Up to 2.5 million animal and plant species found there make Brazil the most diverse country in the world. Protecting these habitats is paramount to the preservation of biodiversity worldwide.

The fight against deforestation in Brazil, in which KfW Development Bank is a key actor, will make an important contribution to global climate change mitigation. Deforestation in the Amazon forest was reduced by around 80% between 2004 and 2015. Brazilian conservation areas now cover 1.6 million square kilometres and enjoy a level of legal protection. The area protected today is around 4.4 times the size of Germany. But the successes are still under threat, and forest destruction has increased again in recent years.

So there is still a lot to do. Germany is supporting Brazil in establishing protected areas and developing a rural environmental register as the foundation for the new and progressive Forest Code. With German support, innovative, results-based financial mechanisms are also being developed and introduced in forest management, reforestation and law enforcement relating to tropical forest conservation.

On behalf of the German Federal Government, KfW is also helping to ensure that rainforests are used sustainably, therefore helping to preserve biodiversity. For the inhabitants and smallholders living there, new sales markets are opened for their products, such as Açaí berries, pirarucu fish, Brazil nuts and various ingredients for natural cosmetics. Digital tracking systems and transparent bio-labels are to be introduced for selected rainforest products.

The majority of Brazilian energy is currently generated by large hydropower plants. Brazil therefore has a good climate footprint compared to other emerging countries. However, concentrating on large-scale hydropower also comes with its own risks. In times of drought, the reservoirs of the power plants cannot be refilled, which jeopardises the energy security of the entire country. The only solution then is to generate the energy required by connecting thermal power plants, which is very expensive and also harmful to the climate. At the same time, the country has great potential for the further expansion of renewable energies. Germany is helping Brazil to diversify its energy supply and increase the share of electricity generation from wind and solar power.

Major progress has already been made in expanding solar and wind energy. Renewable energy sources currently account for 10% of Brazil’s electricity generation, but much more is achievable. As a technology leader in renewable energies and pioneer in climate protection, Germany has been supporting the expansion of renewable energies by providing consulting and financing services for more than ten years.

In addition to sustainable energy generation, more efficient use of electricity can also contribute a great deal to the reduction of greenhouse gases – and hence to global climate protection. During the most recent intergovernmental conferences, it was decided that this issue would be tackled jointly. For example, the Brazilian development bank BNDES will be supported with a grant of EUR 25 million for the establishment and implementation of an innovative guaranteed fund for loans to small and medium-sized enterprises that invest in energy efficiency. In this way, a multitude of private sector investments can likely be mobilised for energy-saving projects. In addition to achieving climate protection goals, these investments also contribute to securing jobs and incomes for small and medium-sized enterprises.

Cities are among the largest emitters of greenhouse gases, and close to 90% of the population of Brazil now lives in urban areas. At the same time, population centres are also the most affected by climate change due to their density of infrastructure and the sheer numbers of people living together in a relatively small area. Increasing flooding, landslides, heat waves and water scarcity are just some of the impacts that are increasingly pushing cities, their inhabitants and infrastructure to their limits. KfW supports Brazil’s sustainable and climate-friendly urban development efforts. The partnership helps to reduce climate-damaging emissions and will increase the resilience of cities. There is a particular focus on transport and water.

In Rio de Janeiro, for example, there is now a new tram line that prevents around 1.7 million car journeys every year. This corresponds to savings of 300,000 tonnes of CO2 over the service life. This expansion of local public transport therefore helps to protect the environment and the climate. KfW is also financing sustainable waste water disposal in various metropolitan areas, such as Belo Horizonte, Curitiba and Salvador, which will benefit around three million people. This will help to keep rivers cleaner, conserve the scarce resource of water and prevent diseases. The emerging economy of Brazil will only be able to exploit its enormous potential in the long term if cities develop sustainably.