BRICS New Development Bank To Allocate $500Mln To Brazil's Climate Fund

BRICS New Development Bank to Allocate $500Mln to Brazil's Climate Fund

The New Development Bank (NDB), established by BRICS member states, will provide Brazil with a $500 million loan for the national climate fund's project, the bank said on Thursday in a statement, published on its official website

MOSCOW (Pakistan Point News / Sputnik - 24th October, 2019) The New Development Bank (NDB), established by BRICS member states, will provide Brazil with a $500 million loan for the national climate fund's project, the bank said on Thursday in a statement, published on its official website.

On October 15, 2019, the NDB's Board of Directors approved two projects worth $800 million, bringing the Bank's portfolio to 44 projects with loans aggregating to $12.4 billion.

"The Bank will provide a sovereign loan of USD 500 million to the Federative Republic of Brazil for the Fundo Clima - Brazil National Climate Fund Project. The project is aimed at capitalizing Fundo Clima to expand its on-lending operations to sub-projects contributing to climate change mitigation and adaptation," the statement said.

It is also pointed out that the loan will be fully committed by 2024. Under the project, such sectors as urban mobility, waste treatment, renewable energy, energy efficiency are expected to be financed.

According to the statement, the NDB will also provide a $300 million loan to REC Limited, India's power infrastructure giant, to support the Indian government 's increasing investment in the renewable energy sector.

The decision on creating the NDB was made at the 2013 summit held in Durban. At the following summit in Fortaleza in 2014, the bloc's leaders signed an agreement establishing the NDB with an aim of boosting cooperation among the five member states and investing in the countries' infrastructure and sustainable development projects.