The flooding in Rio Grande do Sul that began in late April had a devastating impact across southern Brazil. We express our condolences to the families of those who died in this disaster and recognize that the Brazilian government is working hard to help the hundreds of thousands of people that remain displaced. The recognition of the grave environmental and climate crises faced by all nations is part of the motivation for our coming together to address climate change, and to leverage the opportunities doing so presents for supporting just transitions and economic development.
Since early last year, the U.S. Department of the Treasury (Treasury) and the Brazilian Ministry of Finance (Fazenda) have implemented unprecedented measures to align their institutions with the best environmental and climate policies. Senior officials from both organizations have convened on several occasions, united by a common commitment to advancing inclusive economic development, preserving the environment, promoting regional integration, and advancing democratic values and social justice. The U.S. Treasury and Fazenda proudly announce the Brazil Fazenda – U.S. Treasury Climate Partnership (the Climate Partnership). In doing so, we jointly recognize:
Brazil’s bold plans to safeguard its natural capital, and its leadership in the global fight against climate change and environmental destruction.
From innovative sustainable investment platforms to new and cross-cutting green legislation, Fazenda is leading the government’s implementation of the Ecological Transformation Plan (ETP) and is demonstrating the critical role of finance ministries in addressing climate change and protecting the environment. The ETP is projected to raise Brazil’s GDP by 2 percent by 2030, and to generate millions of new jobs.
Brazil is a top 10 world economy with over 90 percent carbon-free electricity generation and a caretaker of vast ecological resources, poised to serve as an example of how emerging market and developing economies can contribute to mitigating and adapting to climate change effects while fostering social development through smart investment decisions. Brazil has prioritized sustainable finance as part of its Presidency of the G20 through various working groups.
The United States’ historic policy innovations are driving substantial financial commitments towards nature protection and green economy investments.
The Inflation Reduction Act and Bipartisan Infrastructure Law are transforming the U.S. economy by mobilizing significant clean power investments from private sectors. These laws aim for a just transition, creating over 170,000 clean energy jobs in their first year especially in low-income communities. They also facilitated over $10 billion into conservation initiatives protecting more than 41 million acres within three years as part of conserving 30% of U.S lands by 2030.
Global action requires collaboration between nations like Brazil and the United States who share deep economic ties through trade investment committed towards sustainable inclusive development recognizing that well-designed climate actions catalyze economic growth while ensuring Latin America's broader sustainable development including evolving multilateral banks' roles alongside other financial architectures.
Today at G20 Finance Minister Meetings in [Rio], Fazenda & Treasury renew intentions for bilateral/multilateral collaborations addressing pressing environmental challenges advancing coordination integrating national/regional resilient economies via this partnership across four pillars: clean energy supply chains; high-integrity carbon markets; nature/biodiversity finance; multilateral climate funds
This partnership aims at policy reforms driving international institutional changes deploying public/private capital efficiently tackling today's critical environmental issues including clean energy technologies building value chain resilience fostering high-integrity carbon markets conserving forests/biodiversity leveraging bilateral works within multilateral forums like G20 World Bank IMF International Financial Institutions Coalition Finance Ministers Climate Action etc
We plan joint support enhancing complementarity coherence ambition within climate finance architecture improving access financing emerging/developing countries mobilizing public/private finances prioritizing continuity across G20 presidencies engaging incoming South African presidency
Key Pillars include:
Clean Energy Supply Chains: Recognizing substantial financing requirements needed globally developing policy tools crowding private sector investments diversifying supply chains supporting advancements deploying clean technologies financing renewables manufacturing low-carbon hydrogen biofuels etc engaging dialogues mobilizing institutions understanding innovative tools rapid private investments integrating clean energy supply chains recent measures from Ecological Transformation Plan/Inflation Reduction Act
High-Integrity Carbon Markets: Recognizing transparent functioning voluntary carbon markets meeting global goals sourcing capitals essential technologies/practices respecting approaches benefits allocations sharing strongly supporting efforts improving integrity/effectiveness sharing best practices supporting multilateral initiatives appropriate fora developing global voluntary market integrity principles
Nature/Biodiversity Finance: Supporting efforts mobilizing finances innovative solutions conserving/restoring nature biodiversity including multilateral banks/environmental trust funds applauding US State Department's Amazon Fund contribution protecting tropical rainforests acknowledging US intention fulfilling President Biden's $500M pledge continuing collaborative discussions Tropical Forest Financing Facility recognizing debt-for-nature swap applauding conservation efforts leveraging financial instruments deriving best practices informing global policies ahead COP30/CMA7 meetings next year
Multilateral Climate Funds: Promoting concrete steps facilitating ease access resources vulnerable countries acknowledging Independent High-level Expert Group work simplifying harmonizing processes advancing shared priorities private capital mobilization nature-based solutions reinforcing connections needs priorities applauding draft Action Plan presenting governing bodies robust final delivering developing countries needs improving access collaborating shaping strategic direction CIF launching CIF Capital Markets Mechanism funding new generation investment plans critical areas exploring opportunities Clean Technology Fund Futures Window supported $568M loan contribution advancing industry decarbonization aligned national priorities
