Modelagem Financeira de Gestao Consorciada: Oportunidade para o Brasil Financiar Infraestructura Subnacional Sustentável

This policy brief, prepared by the Climate Bonds Initiative in partnership with the Inter-American Development Bank and commissioned by the Brazilian Ministry of Economy, explores how subnational consortia in Brazil can utilize innovative financial modeling to fund sustainable municipal infrastructure. It analyzes the legal barriers facing Brazilian municipalities, proposes the adoption of pooled financing mechanisms (MFGCs), and provides international case studies to support a green economic recovery.

• Subnational consortia offer a solution for small and medium-sized municipalities—which make up 68.2% of Brazilian cities—to overcome limited technical capacity and low credit ratings by sharing the management of public goods and reducing service costs.
• There is a substantial opportunity for green investment in Brazil, estimated at USD 1.3 trillion across sectors such as transport, water resources, solid waste, buildings, and energy efficiency, which could help the country meet its Nationally Determined Contributions (NDCs).
• The document identifies three primary types of Pooled Financial Management Mechanisms (MFGCs): 'Club deals' (joint bond issuance without a Special Purpose Vehicle), Aggregation Platforms (using an SPE as an intermediary), and Bond Banks (state-owned entities that provide aggregated emissions for local authorities).
• Current Brazilian legislation for public consortia (Lei 11.107/2005) is limited because it does not clearly define autonomous resource mobilization and is subject to Senate limits and the Fiscal Responsibility Law, which can hinder independent financial capture.
• International examples demonstrate the efficacy of blended finance and pooled funds, such as the Water and Sanitation Pooled Fund (WSPF) in Tamil Nadu, India, and the Water Revolving Fund for the Philippines (PWRF), both of which used SPEs and concessional loans to lower interest rates for smaller local government units.
• To unlock sustainable infrastructure, the report recommends updating Law 11.107/2005 to better define autonomous funding, flexing the Fiscal Responsibility Law, and establishing clear governance rules regarding voting weights and quorums for consortia.

APA

Ambrosano, J., Souza, L., Brakarz, B., & Callau, V. (2021). Modelagem Financeira de Gestao Consorciada: Oportunidade para o Brasil Financiar Infraestructura Subnacional Sustentável. Climate Bonds Initiative. https://www.climatebonds.net/files/documents/publications/Modelagem-financeira-de-gestao-consorciada-Oportunidade-para-o-Brasil-financiar-infraestrutura-subnacional-sustentavel.pdf

Chicago

Ambrosano, Julia, Leisa Souza, Barbara Brakarz, and Vanessa Callau. Modelagem Financeira de Gestao Consorciada: Oportunidade para o Brasil Financiar Infraestructura Subnacional Sustentável. Climate Bonds Initiative, 2021. https://www.climatebonds.net/files/documents/publications/Modelagem-financeira-de-gestao-consorciada-Oportunidade-para-o-Brasil-financiar-infraestrutura-subnacional-sustentavel.pdf.

Wikipedia

{{cite report |last1=Ambrosano |first1=Julia |last2=Souza |first2=Leisa |last3=Brakarz |first3=Barbara |last4=Callau |first4=Vanessa |title=Modelagem Financeira de Gestao Consorciada: Oportunidade para o Brasil Financiar Infraestructura Subnacional Sustentável |publisher=Climate Bonds Initiative |date=February 2021 |url=https://www.climatebonds.net/files/documents/publications/Modelagem-financeira-de-gestao-consorciada-Oportunidade-para-o-Brasil-financiar-infraestrutura-subnacional-sustentavel.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{ambrosano2021modelagem, author = {Ambrosano, Julia and Souza, Leisa and Brakarz, Barbara and Callau, Vanessa}, title = {{Modelagem Financeira de Gestao Consorciada: Oportunidade para o Brasil Financiar Infraestructura Subnacional Sustentável}}, institution = {Climate Bonds Initiative}, year = {2021}, month = feb, url = {https://www.climatebonds.net/files/documents/publications/Modelagem-financeira-de-gestao-consorciada-Oportunidade-para-o-Brasil-financiar-infraestrutura-subnacional-sustentavel.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }