As an emerging market Brazil has a lot of resources to invest in the development of environmentally friendly projects. Yet, accordingly to the experts’ announcement the problem is that “there are not enough decent projects to finance”. We hope that through the cooperation with German leading green companies and research institutions Brazilian project proposals could gain additional value to enable them to have more chances to obtain different national and international funds.
Brazil has different state programmes that aimed at supporting the innovation and sustainable project development
1. Federal funds
One of the low cost access to financing is confined to credit lines provided by Brazilian National Development Bank (BNDES), which offer rates between 2.5% - 5.5% under their climate fund (Fundo Clima) program,. The program provides a credit interest rate lower than the current reference rate (11%) stated by the central bank of Brazil. The financing is granted for products with nationalization (local content) index, in value and weight, higher than 60%, and what is making more difficult to obtain it for solar energy projects.
BNDES has also other funds such as Fundo Amazônia, Technology development fund (FUNTEC), support for energy efficiency projects (PROESCO) etc. All these funds are aimed to support the innovation projects and differ in the project location or its specification.
More detailed information can be found here: http://www.bndes.gov.br/SiteBNDES/bndes/bndes_en/
Funding Authority for Studies and Projects (FINEP)
According to the law about innovations (Lei de Inovação) companies might obtain public resources from 10% to 200% of applying amount (depending on the size of the company) to develop innovative projects. Generally projects should be from the strategic areas selected by the Federal Government to be able to receive such support. FINEP is responsible for this subsidy and it is publishing the information about the beginning of a tender on its site http://www.finep.gov.br/editais/vigentes.asp
Brazil has different state programmes that aimed at supporting the innovation and sustainable project development
1. Federal funds
One of the low cost access to financing is confined to credit lines provided by Brazilian National Development Bank (BNDES), which offer rates between 2.5% - 5.5% under their climate fund (Fundo Clima) program,. The program provides a credit interest rate lower than the current reference rate (11%) stated by the central bank of Brazil. The financing is granted for products with nationalization (local content) index, in value and weight, higher than 60%, and what is making more difficult to obtain it for solar energy projects.
BNDES has also other funds such as Fundo Amazônia, Technology development fund (FUNTEC), support for energy efficiency projects (PROESCO) etc. All these funds are aimed to support the innovation projects and differ in the project location or its specification.
More detailed information can be found here: http://www.bndes.gov.br/SiteBNDES/bndes/bndes_en/
Funding Authority for Studies and Projects (FINEP)
According to the law about innovations (Lei de Inovação) companies might obtain public resources from 10% to 200% of applying amount (depending on the size of the company) to develop innovative projects. Generally projects should be from the strategic areas selected by the Federal Government to be able to receive such support. FINEP is responsible for this subsidy and it is publishing the information about the beginning of a tender on its site http://www.finep.gov.br/editais/vigentes.asp
In the process of selection foreign companies might take part only if they have partners in Brazil. However, for this purpose a company should be in a category of “leading companies”. According to established for this program criteria a “leading company” should have gross operating revenue equal or higher than 4 926 790 Euro (R$ 16 000 000) or equity equal 1 231 699 Euro (R$ 4 000 000) in the latest fiscal year.
To apply for this program a company should send a note of interest. After this leading companies will be selected to present their business-plans. For selected business-plans will be elaborated an instrument of support with conditions of a credit and a financing amount.
2. Regional programs in Sao Paulo
Many regions in Brazil have the funds for the innovation projects financing and it is possible to negotiate the conditions with local government that depending on the projects. Regional autority are usually offering the place for free or under subsidies, special fiscal treatment and many other incentives in order to attract a foreign investor/company that could bring an economic development and jobs creation in the region. As an example we could see the offer of regional bank in São Paulo.
Desenvolve SP
The São Paulo state provides to investors credit facilities and specific tax incentives for activities related to the sector. There is the green economy credit facility, from São Paulo Development Agency – Desenvolve SP. The interests of this bank is a bit higher than the one of than BNDES, but it is easier to get, because it requires less bureaucracy and it allows to import material needed for the construction (while to get BNDES credit company should guarantee to use at least 60% of materials produced in Brazil ).
| Name of credit line | Interest rate/ per month | Repayment period (months) | Repayment period (months) |
FIP
| 0, 57% | Up to 120 | Up to 24 |
| Linha Economia Verde | 0,41% | Up to 120 | Up to 24 |
| Linha Economia Verde – equipment | 0,41% | Up to 60 | Up to 12 |
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