Lab Instrument Analysis: Green FIDC

The Green FIDC is a proposed financial instrument in Brazil that adapts the Fundo de Investimento em Direitos Creditórios (FIDC) structure to provide low-cost, long-term capital for renewable energy and energy efficiency projects. By using a two-stage process of development finance followed by capital market refinancing, the instrument aims to mitigate early-stage risks. A pilot for rooftop solar via Órigo Energia is underway, with a long-term goal of leveraging USD 1 billion in clean investment, creating 3,600 jobs, and avoiding 6 million tons of CO2.

• Brazil faces a significant funding gap for green projects because the Brazilian National Development Bank (BNDES), the primary source of finance for renewable energy, has seen project lending drop to its lowest level since 2007 due to fiscal constraints and economic recession.
• The Green FIDC is a proposed financial instrument that adapts the existing Brazilian Fundo de Investimento em Direitos Creditórios (FIDC) framework—which allows companies to raise capital by securitizing receivables—by adding green certification criteria and segregating operational and financial risks.
• The Green FIDC operates in two stages: it first provides construction and development finance for greenfield projects using an asset-backed vehicle to mitigate risk for investors, and then refinances the project through the sale of senior shares in Brazilian Capital Markets once the project is operational and has stable cash flows.
• A pilot program for Órigo Energia is applying the Green FIDC concept to finance rooftop solar systems for residential consumers in Brazil; this pilot has already secured 30% of junior and mezzanine shares from private sector investors.
• The broader Green FIDC Program aims to leverage up to USD 1 billion in clean investment through multiple FIDCs across sectors including energy efficiency and utility-scale renewable energy, with the potential to create 3,600 new jobs and avoid up to 6 million tons of CO2.

APA

Climate Policy Initiative (2020). Lab Instrument Analysis: Green FIDC. https://www.climatepolicyinitiative.org/publication/lab-instrument-analysis-green-fidc/

Chicago

Climate Policy Initiative. Lab Instrument Analysis: Green FIDC. 2020. https://www.climatepolicyinitiative.org/publication/lab-instrument-analysis-green-fidc/.

Wikipedia

{{cite report |author=Climate Policy Initiative |title=Lab Instrument Analysis: Green FIDC |date=15 July 2020 |url=https://www.climatepolicyinitiative.org/publication/lab-instrument-analysis-green-fidc/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatepolicyinitiative2020lab, author = {{Climate Policy Initiative}}, title = {{Lab Instrument Analysis: Green FIDC}}, institution = {Climate Policy Initiative}, year = {2020}, month = jul, url = {https://www.climatepolicyinitiative.org/publication/lab-instrument-analysis-green-fidc/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }