6 May 2025, London (The Net-Zero Circle) - Brazil’s commitment to industrial innovation and decarbonization is gaining new momentum as the National Bank for Economic and Social Development (BNDES) and the Funding Authority for Studies and Projects (Finep) announce a historic R$29.6 billion in approved funding for innovation in 2024—more than double the R$14.1 billion allocated in 2023. This marks the largest annual investment in innovation since 2010, highlighting the government’s strategic push to revitalize and future-proof national industry under the “Nova Indústria Brasil” (New Brazil Industry) policy.
The sharp increase reflects a coordinated effort to support cutting-edge technologies and green solutions, ranging from biofuels and AI to advanced manufacturing and clean energy. Approximately R$16 billion of the funding is being deployed by Finep, with BNDES accounting for R$13.6 billion. The financing includes both reimbursable and non-reimbursable resources, ensuring accessibility for projects across different stages and sizes.
Among the standout initiatives is Scala’s new wastewater treatment and biogas generation plant in Sacramento, Minas Gerais. Backed entirely by R$64.7 million from the BNDES-administered Fundo Clima, the facility will process up to 2,200 cubic meters of effluent per day and produce an estimated 10,800 cubic meters of biogas—translating into an annual reduction of 79,000 tonnes of CO₂-equivalent emissions. The project not only enhances Scala’s environmental performance but also positions the dairy group to enter Brazil’s growing biometano (biomethane) market.
“The Climate Fund is a strategic tool for decarbonization,” said BNDES President Aloizio Mercadante. “This type of project shows how climate action can go hand-in-hand with innovation and economic opportunity, generating revenue and reducing industrial emissions.”
The wave of new financing builds on the government’s broader agenda of neoindustrialization, which emphasizes investment in high-impact technologies and increased competitiveness. Projects supported through this effort include vaccine production, electric and hybrid engines, smart farming equipment, and even urban air mobility technologies being developed by Eve, a subsidiary of Embraer.
“Brazil is entering a new industrial era,” said Mercadante. “We are directing capital toward transformative innovations that will shape the jobs of the future and reintegrate Brazil’s industry into global value chains.”
Finep President Celso Pansera reinforced this vision, stating that the combined efforts of Finep and BNDES aim to restore Brazil’s industrial leadership through bold and sustained innovation financing.
As Brazil steps up investment in future-proof technologies and sustainability, public banks are proving central to the country’s long-term industrial and environmental strategy. With billions already in motion, 2024 may be a turning point for the nation’s innovation ecosystem.
