The Role of BNDES in fostering sustainable The Role of BNDES in fostering sustainable developmentdevelopment

June 2012June 2012

BNDES at a Glance

Values

Commitment to the country’s development,

ethics, public spirit and excellence.

Vision To be the development bank of Brazil,

innovative, outstanding, and to proactively tackle the current and relevant challenges of our society.

MissionTo foster sustainable and competitive development in the Brazilian economy, generating employment, while reducing social and regional inequalities.

Mission, Vision & Values

Infrastructure

Heavy Industry – Consumer Goods

Small and Medium-Sized Enterprises

50s 60s 70s 80s 90s 00s Today

Technologic Development

Imports Substitution

Energy

Agribusiness

Exports

Privatization Program

Urban and Social Development

Innovation

Sustainability

Small Business

Social Inclusion and Environmental Issues

BNDES development in time

Adapting to the varied stages of Brazil´s development, having the means

– resources and instruments - to accomplish mandates

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BNDES as a promoter of sustainable development

- Financial Resources For Sustainable Development

BNDES as a promoter of sustainable development

- Financial Resources For Sustainable Development

Linhas de Financiamento

• Meio Ambiente

• BNDES Florestal

• Energias Renováveis

• Projetos de Transporte Urbano

• Eficiência Energética (Proesco)

• Saneamento Ambiental e Recursos Hídricos

• Projetos Multissetoriais Integrados (PMI)

• PMAE Ambiental

• Investimentos Sociais de Empresas

Instruments to suport sustainable development

No que diz respeito à disponibilizar recursos para investimentos socioambientais,

Linhas, Programas e FundosLinhas, Programas e Fundos são os instrumentos utilizados para a operacionalização da

Política Socioambiental do BNDES.

Atualmente, o BNDES apóia investimentos socioambientais por meio dos seguintes

instrumentos:

PROGRAMAS

• BNDES Compensação Florestal

• ABC e PRONAF

• BNDES Procopa Turismo

• BNDES Proplastico

• BNDES Saúde

• BNDES Microcrédito

FUNDOS

• BNDES Funtec e FEP

• BNDES Fundo Social e Cultural

• Fundo Amazônia e Fundo Clima

• FI Empresas Sustentáveis na Amazônia e

Inovação em Meio Ambiente

Eficiência Energética

A atuação do BNDES no apoio a investimentos socioambientais ocorre de

forma setorial e transversal e atende a diversos públicos, iniciativa privada,

governo e sociedade civil:

Aspectos SocioAmbientaisTransversal

Reflorestamento, Conservação e Regularização

Florestal

Eco-Eficiência Industrial

Investimentos Sociais de

Empresas e Microcrédito

Saneamento e Recursos Hídricos

Melhoria de Gestão

Construção Sustentável

Recuperação de Passivo Ambiental

InovaçãoProdução

Sustentável

Governo

Iniciativa Privada Outras Instituições

Projetos Integrados:

Infra-Estrutura e Serviços

Sociais Básicos

Desenvolvimento Institucional

Instruments to suport sustainable development

BNDES and Green Development

BNDES’ Disbursements to the Green Economy (Amounts in US$ million)BNDES’ Disbursements to the Green Economy (Amounts in US$ million)

Sectors 2008 2009 2010 2011Renewable Energy - Hydroelectric plants (above 30 MW)

2,138 4,782 3,547 2,972

Renewable Energy - Other & Energy Efficiency

3,234 3,234 3,445 4,031

Cargo Transport 831 1,125 819 921 Public Transport 343 803 387 529

Water and Sewage Management 455 891 1,059 845

Solid Waste Management 139 92 312 273 Forests 128 177 348 354 Agricultural Improvements 67 221 265 189 Adaptation to Climate Change and Disaster Risk Management

- - 81 351

Others 61 49 39 94 Green Economy - Total 7,397 11,373 10,301 10,557

US$/R$ = 1.752011 total disbursements: around US$ 80 billion2011 total disbursements: around US$ 80 billion

Created in 2010 – aims to mitigate and reduce greenhouse gas

emissions in agriculture

Financing for farmers and cooperatives with differentiated conditions

US$ 1.9 billion in resources available for the 2011/2012 crop

Incentives for techniques that guarantee efficiency in the fields

ABC ProgrammeABC Programme

Low Carbon Agriculture

Projected reduction of emissions for 2020: Between 130 and 160 million tons of CO2e

Objective of the Fund: to ensure funds

to support projects or studies aimed at

promoting climate change mitigation

and adapting to its effects.

Source of Funding

Resources 2011

Grants: US$ 18 millions

Concessional Loans: US$ 119 millions

> Main: Up to 60% share of the

Special Participation of

Petroleum received by the MMA

> Potencial Sources: grants,

loans, others.

Operationalization: Ministry of Environment and

BNDES

Examples of Sectors:

Renewable Energy

Sustainable Production Activities: native wood producion, fruit and fiber

$ $

$$

$$$$

Concessional Loans

Grants

$$

Brazil´s Climate Fund

Ministry of the Environment

I. Management of public forests and protected areas;

II. Environmental control, monitoring and surveillance;

III. Sustainable forest management;

IV. Economic activities developed from the sustainable use of the forest;

V. Ecological and economic zoning, land-use planning and land-title regulation;

VI. Conservation and the sustainable use of biodiversity and;

VII. Recovery of deforested areas.

Goverment of Norway

Donator

KfW Germany

Petrobras

Pledged Funds

US$ 1 billion

EUR 21 million

US$ 4 million

SourceSource of resources

Amazon Fund

Aim: Aim: non-reimbursable investments in efforts to prevent, monitor and combat deforestation, and to foster the conservation and sustainable use of forests in the Amazon Biome.Amazon Biome.

To achieve its objectives, the

Amazon FundAmazon Fund supports projects projects

in the following areasfollowing areas

Disbursements: R$ 89,3 millionDisbursements: R$ 89,3 million

Support to ESCO (Energy Service Companies) in projects that

contribute to energy efficiency or substitute fossil fuels by renewable

sources

Attractive financial conditions

Three approved projects in 2011

Reduction of energy consumption (estimative): 2.500 MWh per year

PROESCOPROESCO

Fostering Energy Efficiency

Five Dimensionsof Planning

1

2

4

5

Land use planning

Regional infrastructure / Social, environmental

and culturaldevelopment

Strengthening local management

Professional qualification and labour training

Economic development(e.g. supply chain,

local productive andinnovative arrangements, expansion of the income

and labour effect)3

A new approach to support large projects: focus on systemic implications of the territorial area of influence

A broader concept of development

Economic, social, environmental and territorial dimensions

Extended partnerships and social control

Adaptability according to local reality

A better allocation of financial resources

Systemic planning for development

Local Development: an opportunity and a responsibility

Non-reimbursable resources for

technical studies and research related

to sustainable development

Objectives:

To support the development of public

policies

To direct BNDES’ strategic guidelines,

priorities and policies

Analysis of technologies for treatment and disposal of urban solid wastes in Brazil, Europe, Japan and US (coordinated by the Federal University of Pernambuco)

Investigation of the potential effects in the Brazilian industry due to the adoption of low-carbon technologies by developed countries (coordinated by the University of São Paulo from Ribeirão Preto - Fearp/USP)

Economic research

Examples of studies under development:

BNDES Financial Support for Sanitation Investments

Disbursements (US$ million)Net exposure (US$ billion)

140283

410

9381,106

9851,051

179122 129

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Legal and administrative framework: Water Supply and Sewage (Federal Law Nº. 11,445/2007) and Solid Waste (Federal Law Nº. 12,305/2010).

More than R$ 40 billion in public funds to support investments over the next 4 years

Opportunities in Public-Private-Partnerships and Concessions: a large and open market for new (qualified) investorsar

WaterUS$ 2.40

WasteUS$ 0.13

DrainageUS$ 0.21

SewageUS$ 3.59

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The support for SMEs

Share of MSMEs in total disbursement

N° of MSMEs supported in 2011

45.83557.480

109.121

176.678

235.984

0

50.000

100.000

150.000

200.000

250.000

2007 2008 2009 2010 2011

BNDES Credit Card:- 510,000 active cards- 2011: R$ 7.6 bi- 2012: R$ 11. bi (expected)

85.5% of townships with active operations with BNDES credit card for SMEs

Source: BNDES

21,5%

31,8%

35,9%

41,4%

24,0%24,8%

15%

20%

25%

30%

35%

40%

45%

2007 2008 2009 *2010 *2011 up to march 2012

The Role of BNDES in fostering sustainable The Role of BNDES in fostering sustainable developmentdevelopment

June 2012June 2012