Finance Landscape of Highways and Railroads: Elements for Strengthening the Governance of Infrastructure Investments in the Brazilian Amazon

Between 2012 and 2021, the North Region of Brazil received R$ 30.6 billion (US$ 11.1 billion) for land transport infrastructure, representing 17% of the national total tracked. Public sources provided 78% of this funding, with the federal government as the primary source. The rail sector was the largest beneficiary in the North, receiving 55% of resources, heavily driven by the Carajás Railroad. In contrast, public budget funds in the North were overwhelmingly directed to highways (99%), primarily for maintenance and operation (79%). While private finance via incentivized debentures grew nationally, it accounted for 22% of the North's flows. Multilateral Development Banks (MDBs) contributed R$ 3 billion, with the New Development Bank (NDB) being the most active in the region. The report emphasizes that without improved governance and rigorous socio-environmental analysis, these investments risk driving deforestation in the Amazon.

• The North Region of Brazil received R$ 30.6 billion (US$ 11.1 billion) of the R$ 179.7 billion (US$ 62.9 billion) in tracked financing for highway and railroad projects nationwide between 2012 and 2021.
• Public funding dominated the North Region's land transport finance, accounting for 78% (R$ 23.9 billion / US$ 9.2 billion) of tracked flows, with the federal government providing 68% (R$ 20.8 billion / US$ 8.3 billion) of the total.
• The rail sector received the majority of funding in the North Region (55% or R$ 16.7 billion), largely due to the Carajás Railroad, which alone received R$ 14.5 billion (US$ 6.1 billion) and represented 48% of the total mapped for the region.
• Public budget allocations in the North were heavily skewed toward highways, which received 99% of the R$ 9 billion (US$ 2.9 billion) tracked. Within this, 79% (R$ 7.1 billion) was spent on maintenance and operation, while only 20% (R$ 1.8 billion) went to new construction.
• Private finance via incentivized debentures accounted for 22% (R$ 6.7 billion / US$ 1.9 billion) of the North's flows, with Vale S.A. contributing the largest share (R$ 3.3 billion) for the Carajás Railroad.
• Multilateral Development Banks (MDBs) provided R$ 3 billion (US$ 911 million) in subsidized loans for three projects in the North. The New Development Bank (NDB) was the most significant MDB in the region, investing R$ 2.2 billion (US$ 498 million) across two projects.
• While national public budget funding for infrastructure fell by 53% between 2012 and 2021, funding levels remained constant in the North Region.
• Infrastructure projects in the Amazon are a primary driver of deforestation; for example, four planned federal investments in Pará could potentially deforest 6,989 km in 30 years.

APA

Climate Policy Initiative (2022). Finance Landscape of Highways and Railroads: Elements for Strengthening the Governance of Infrastructure Investments in the Brazilian Amazon. https://www.climatepolicyinitiative.org/publication/finance-landscape-of-highways-and-railroads-elements-for-strengthening-the-governance-of-infrastructure-investments-in-the-brazilian-amazon/

Chicago

Climate Policy Initiative. Finance Landscape of Highways and Railroads: Elements for Strengthening the Governance of Infrastructure Investments in the Brazilian Amazon. 2022. https://www.climatepolicyinitiative.org/publication/finance-landscape-of-highways-and-railroads-elements-for-strengthening-the-governance-of-infrastructure-investments-in-the-brazilian-amazon/.

Wikipedia

{{cite report |author=Climate Policy Initiative |title=Finance Landscape of Highways and Railroads: Elements for Strengthening the Governance of Infrastructure Investments in the Brazilian Amazon |date=30 November 2022 |url=https://www.climatepolicyinitiative.org/publication/finance-landscape-of-highways-and-railroads-elements-for-strengthening-the-governance-of-infrastructure-investments-in-the-brazilian-amazon/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatepolicyinitiative2022finance, author = {{Climate Policy Initiative}}, title = {{Finance Landscape of Highways and Railroads: Elements for Strengthening the Governance of Infrastructure Investments in the Brazilian Amazon}}, institution = {Climate Policy Initiative}, year = {2022}, month = nov, url = {https://www.climatepolicyinitiative.org/publication/finance-landscape-of-highways-and-railroads-elements-for-strengthening-the-governance-of-infrastructure-investments-in-the-brazilian-amazon/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }