BNDES in the Legal Amazon

BNDES financing in the Legal Amazon from 2009 to 2019 was heavily concentrated in large-scale hydroelectric infrastructure that serves the wider Brazilian grid, despite the region's own significant energy poverty and lack of basic services. While the North Region receives the lowest total share of BNDES disbursements, these funds are highly significant relative to its regional GDP. Recent BNDES initiatives are shifting toward the energy transition, including agreements to replace diesel generation with renewables and a pilot project for solar microgeneration. The report emphasizes that future investments should prioritize reducing regional inequalities in energy, internet access, and basic sanitation.

• Between 2009 and 2019, BNDES disbursements in the North Region were the lowest among all Brazilian regions in absolute terms, yet the North received the highest share of disbursements relative to its regional GDP. This indicates that while the region is not a financial priority for the Bank, BNDES is a vital development instrument for the North.
• BNDES financing in the Legal Amazon is heavily concentrated in the infrastructure sector, specifically electricity generation. Major projects funded include the Belo Monte plant in Pará, and the Jirau and Santo Antônio plants in Rondônia. Between 2009 and 2019, hydroelectric plants in the Legal Amazon that received BNDES funding accounted for 22% of Brazil's total hydropower generation capacity.
• Despite the region's role as a major electricity exporter, approximately 14% of the Legal Amazon's population (around four million people) remained disconnected from the National Interconnected System (SIN) as of 2020. Many rely on expensive and polluting diesel-powered thermal plants, resulting in estimated charges exceeding R$ 10 billion in 2022, which equates to an annual per capita subsidy of over R$ 3,000 for those in isolated systems.
• To address energy transition and local energy poverty, BNDES has initiated two recent projects: a late 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 from the Solar Amazon Securitizer Company of Financial Credits to install photovoltaic solar microgeneration systems in approximately 1,600 residences and businesses.
• Beyond energy, the Legal Amazon faces severe isolation and lack of basic services. As of 2019, 55% of rural and 45% of urban residents lacked broadband internet, and only 25% of rural residents had 3G or 4G access. To meet the 2030 Basic Sanitation Legal Framework goals for water and sewage, the region requires an estimated annual average investment of R$ 6 billion (in 2018 values) between 2019 and 2033.
• BNDES utilizes both direct and indirect financing. In the Legal Amazon from 2009-2019, indirect support accounted for 47% of disbursements, with the Bank of Brazil (20%), Caixa Econômica Federal (19%), Itaú Unibanco (13%), and Bradesco (12%) being the primary intermediaries. While 80% of indirect disbursements went to large and medium businesses, micro and small businesses represent the majority of firms seeking financing.

APA

Climate Policy Initiative (2022). BNDES in the Legal Amazon. https://www.climatepolicyinitiative.org/wp-content/uploads/2022/06/REL-AMZ-2030-BNDES-in-the-Legal-Amazon.pdf

Chicago

Climate Policy Initiative. BNDES in the Legal Amazon. 2022. https://www.climatepolicyinitiative.org/wp-content/uploads/2022/06/REL-AMZ-2030-BNDES-in-the-Legal-Amazon.pdf.

Wikipedia

{{cite report |author=Climate Policy Initiative |title=BNDES in the Legal Amazon |date=September 2022 |url=https://www.climatepolicyinitiative.org/wp-content/uploads/2022/06/REL-AMZ-2030-BNDES-in-the-Legal-Amazon.pdf |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 = sep, url = {https://www.climatepolicyinitiative.org/wp-content/uploads/2022/06/REL-AMZ-2030-BNDES-in-the-Legal-Amazon.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }