Lab Instrument Analysis: Green FIDC

The Green FIDC is a proposed financial structure designed to address the funding shortfall for green projects in Brazil by securitizing receivables through asset-backed securities. It utilizes a two-stage process: providing construction and development finance for greenfield projects using risk-appropriate public or concessional funds, followed by refinancing through senior shares in Brazilian Capital Markets once projects are operational. A pilot project with Órigo Energia for residential rooftop solar systems has already secured 30% of junior and mezzanine shares from private investors. The broader program aims to leverage up to USD 1 billion in clean investment and avoid up to 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, has seen project lending drop to its lowest level since 2007 due to fiscal constraints and economic recession.
• The Green FIDC instrument manages risk by using public or concessional funds to mitigate development risk during early stages, then refinancing operational projects with stable cash flows through the sale of senior shares in Brazilian Capital Markets.
• A pilot program for Órigo Energia, focusing on rooftop solar systems for residential consumers, has demonstrated commercial viability by securing 30% of junior and mezzanine shares from private sector investors.
• The full Green FIDC Program aims to leverage up to USD 1 billion in clean investment, create up to 3,600 new jobs in the renewable energy sector, 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} }