BNDES in the Legal Amazon

The report examines BNDES's role in the Legal Amazon, finding that while the North Region receives the highest share of disbursements relative to its GDP, it receives the lowest total share of BNDES funds. Financing is heavily concentrated in large-scale hydroelectric infrastructure, often serving the rest of Brazil while local populations remain dependent on expensive, polluting diesel generation. The authors argue for a transition toward renewable energy, decentralized solar power, and improved basic services to reduce regional inequality.

• Between 2009 and 2019, the North Region of Brazil received the lowest share of total BNDES disbursements, yet it had the highest share of total disbursements in relation to the regional GDP.
• BNDES financing in the Legal Amazon is heavily concentrated in the infrastructure sector, specifically electricity generation, with over 70% of disbursements from Project Finance, FINEM, and FINAME for infrastructure going to the electricity sector.
• Despite the region's role as a major electricity exporter via large hydropower plants, approximately 14% of the Legal Amazon's population (around four million people) remained disconnected from the National Interconnected System (SIN) in 2020.
• Isolated systems in the Legal Amazon rely primarily on diesel-fueled thermal plants, which are expensive and polluting; the associated charges were estimated to exceed R$ 10 billion in 2022.
• BNDES has initiated a transition toward clean energy in the region through a 2021 agreement with Eletrobras to replace diesel and a 2022 pilot project involving the acquisition of R$ 60 million in green debentures to finance photovoltaic solar microgeneration.
• The Legal Amazon faces significant isolation and lack of basic services; only 25% of rural residents had access to 3G or 4G mobile internet in 2019, and the region requires an estimated annual investment of R$ 6 billion (2018 values) between 2019 and 2033 to meet basic sanitation goals.

APA

Climate Policy Initiative (2022). BNDES in the Legal Amazon. https://www.climatepolicyinitiative.org/publication/bndes-in-the-legal-amazon/

Chicago

Climate Policy Initiative. BNDES in the Legal Amazon. 2022. https://www.climatepolicyinitiative.org/publication/bndes-in-the-legal-amazon/.

Wikipedia

{{cite report |author=Climate Policy Initiative |title=BNDES in the Legal Amazon |date=27 June 2022 |url=https://www.climatepolicyinitiative.org/publication/bndes-in-the-legal-amazon/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatepolicyinitiative2022bndes, author = {{Climate Policy Initiative}}, title = {{BNDES in the Legal Amazon}}, institution = {Climate Policy Initiative}, year = {2022}, month = jun, url = {https://www.climatepolicyinitiative.org/publication/bndes-in-the-legal-amazon/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }