BNDES in the Legal Amazon - CPI

This policy brief by the Climate Policy Initiative analyzes the activities of the Brazilian Development Bank (BNDES) in the Legal Amazon from 2009 to 2019. It highlights a concentration of funding in large-scale hydroelectric infrastructure that serves the rest of Brazil, while a significant portion of the local population remains without reliable electricity or basic sanitation. The document suggests that BNDES has an opportunity to pivot toward the energy transition and regional development by investing in renewable energy and digital connectivity.

• Between 2009 and 2019, BNDES disbursements in the North Region were the lowest in Brazil in absolute terms, yet this region had the highest share of disbursements relative to its regional GDP, indicating that while the North is not a financial priority for the Bank, BNDES funding is vital for the region.
• BNDES funding in the Legal Amazon from 2009 to 2019 was heavily concentrated in the infrastructure sector, specifically electricity generation. Over 70% of disbursements from the Project Finance, FINEM, and FINAME products for infrastructure in the region went to the electricity sector, with approximately 90% of that total specifically for generation.
• Despite the region's role as a major electricity exporter via plants like Belo Monte, Jirau, and Santo Antônio, approximately 14% of the Legal Amazon's population (around four million people) remained disconnected from the National Interconnected System (SIN) in 2020, relying on expensive and polluting diesel generation.
• BNDES has initiated efforts to support the energy transition in the Amazon, including a 2021 agreement with Eletrobras to replace diesel fuel with renewable energy by 2030 and a 2022 pilot project involving the acquisition of 95% of R$ 60 million in 'green' debentures to finance photovoltaic solar microgeneration for residences and businesses.
• The Legal Amazon faces severe isolation and infrastructure deficits. Market access for a typical municipality in the region is estimated to be roughly half that of municipalities in the rest of Brazil. Additionally, 55% of rural and 45% of urban residents in the Legal Amazon lacked broadband internet access according to 2019 data.
• There is a significant investment gap in basic sanitation in the Legal Amazon. To meet the 2030 goals of the 2020 Basic Sanitation Legal Framework, it is estimated that states in the Legal Amazon require an average annual investment of R$ 6 billion (in 2018 values) between 2019 and 2033.
• BNDES financing in the Manaus Industrial Park (PIM) from 2009 to 2019 saw the highest shares of disbursements go to the IT equipment sector (22%), the pharmachemical and pharmaceutical sector (19%), and rubber and plastic (16%), though analysis did not show productivity gains for these sectors despite fiscal waivers.

APA

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

Chicago

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

Wikipedia

{{cite report |author=Climate Policy Initiative |title=BNDES in the Legal Amazon - CPI |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 - CPI}}, 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} }