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Brazil launches framework for sustainable sovereign bonds
09/05/2023 Since 9 months

The Government of Brazil, through the National Treasury, has published its Sustainable Sovereign Bonds Framework, a reference document for the issuance of sovereign debt securities, the proceeds of which are applied to eligible projects that directly contribute to the promotion of sustainable development in the country, in transition towards a greener, more inclusive and equitable economy.

The Framework details eligible projects (and expenditures) within the scope of the sustainable bond issuance, and the categories of activities associated with environmental and social benefits. Examples of “green seal” initiatives include: environmental preservation of native biomes, control of deforestation in the Amazon and the Cerrado, promotion of the Climate Fund, renewable energy generation, energy efficiency and sustainable management of natural resources. In addition, it introduces guidelines for monitoring, measurement and reporting on the allocation and impact of the use of proceeds, as well as external verification.

The document was prepared by the Sovereign Committee for Sustainable Finance (CFSS), involving joint efforts of the different Federal Government bodies, and also with the support of the Inter-American Development Bank (IDB) and the World Bank. The Framework is aligned with the principles established by the International Capital Markets Association (ICMA).

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