The Inter-American Bank (IDB), the Ministry of Finance, the Ministry of Environment and Climate Change and the Central Bank of Brazil, have signed letters of intent to encourage external investments in actions to mitigate and adapt to climate change, by protecting these investments from exchange-rate volatility.

IDB will support the “Foreign Private Capital Mobilization and Currency Hedging Program,” under the National Climate Fund scope, with a 2 billion dollars line of credit and technical advisory. Additionally, the IDB, in collaboration with the Central Bank of Brazil, will support the development, liquidity and efficiency of the long-term exchange-rate protection market in foreign currency in the country, offering up to 3.4 billion dollars in exchange-rate coverage for the Program, among others. Finally, the Government of the United Kingdom will also contribute with 1 million dollars to IDB in order to support the creation of the Program.