CIF approves $70 million plan to boost clan energy integration in Brazil

The board of directors of the Climate Investment Funds (CIF) gave the green light last Friday (30) to a $70 million initiative aimed at enhancing the integration of clean energy in Brazil. Half of the funding will be allocated to projects in the Pecém Port Complex. As part of the plan, the country aims to double its renewable energy capacity, reduce emissions by at least 57 million tons of CO2 equivalent, accelerate large-scale hydrogen production, and provide access to clean energy for millions of people.

Among the Brazilian states, Ceará leads with the most planned projects. Thirty-one memorandums of understanding have already been signed with national and international companies, signaling investments exceeding $30 billion (R$145.7 billion). Three pre-contracts have already been signed, with an expected investment of $8 billion (R$38.8 billion).

Governor Elmano de Freitas stated that the Northeast region has the potential to produce more green hydrogen than Brazil can consume. This positions the country as a fuel exporter while opening up a cleaner energy matrix for the domestic industry. “Regulation, access to credit, and a differentiated treatment in tax reforms, which need to recognize the strategic nature of this field, are among the challenges to advancing in this production,” he said.

According to CIF, Brazil estimates that the financing will mobilize $9.1 billion from partners, including $8 billion in private investments, for the plan implemented by the Inter-American Development Bank and the World Bank Group. This projection represents a co-funding ratio of 1:130, surpassing the CIF average of 1:10 for clean energy investments.

The plan aims to scale up green hydrogen production at the Pecém hub, with a projected installed capacity of 6 gigawatts by 2034. “Hydrogen production has the potential to drive economic and green market development and can serve as a model for the world, including Brazil’s Northeast region. A robust green hydrogen value chain could position Brazil, which currently exports 20% of the world’s iron, as a leader in green steel production,” highlights the institution on its website.

The program seeks to promote energy as a shared resource for all Brazilians by modernizing the electrical grid. The objective is to enhance reliable access to clean energy for 3.1 million people, fostering social and economic development and inclusion, particularly for remote indigenous peoples and local communities.

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