During the visit to Brazil for the 2nd Brazil-United Kingdom Economic and Financial Dialogue, UK Chancellor of the Exchequer Phillip Hammond launched the Brazil-UK Partnership on Green Finance, a commitment to promote mutual sustainable economic growth. The event was hosted by FEBRABAN (Brazilian Federation of Banks) in São Paulo.
In his announcement speech, the Minister stated:
“AND It is imperative for the UK, as the world’s leading financial centre, and Brazil, with a strong commitment to sustainability and a strong appetite for infrastructure investment, to join forces, thereby ensuring the flow of capital to much-needed sustainable projects.
This partnership will be crucial in deepening sustainable development ties between our two countries; driving innovation and ethical leadership; and consequently increasing green capital flows.”
The Partnership, led by Sustainable Market Development Council of Brazil and by City of London's Green Finance Initiative was announced by the Minister yesterday (01/08) in São Paulo. The event was presented by the president of FEBRABAN, Murillo Portugal and Justine Leigh-Bell, head of Market Development, and was part of the Brazil-UK Economic-Financial Dialogue, an annual meeting to strengthen relations between the two countries.
The event in São Paulo also included the presence of the UK Ambassador to Brazil, Vijay Rangarajan, dozens of corporations and representatives from the Brazilian and UK financial sector, including BNDES, CEBDS, Itau-Unibanco, Zurich Brazil, UBS, CPFL Energy, Ecoagro, City of London, London Stock Exchange, among many others.
Comments and Opinions
Stephen Barclay, UK Chancellor of the Exchequer
“The UK-Brazil partnership offers a great opportunity in green finance. We look forward to building a discussion around this topic. It is a very important agenda.”
Murilo Portugal, President of FEBRABAN
“A partnership between the UK and Brazil certainly represents an opportunity to raise awareness around green finance and to establish a stronger channel of communication to share best practices on this topic and identify new business opportunities between the two parties.”
André Salcedo, Head of Capital Markets Development, BNDES
“The green agenda exists within BNDES and I believe that the Council, of which we are proud partners, will help overcome the challenges of accessing new markets. We are committed to advancing this agenda in the country.”
Marina Grossi, President, CEBDS
“The partnership between Brazil and the United Kingdom will open doors for us and allow for a rich exchange of information and experiences between the two countries. The role of the Council is strengthened in this context by bringing together stakeholders in this market. We will face challenges, of course, but the agenda will be strengthened in the country.”
Sylvia Coutinho, CEO, UBS Brazil
“We need foreign capital to finance projects that are often green in nature. Brazil has the largest environmental assets in the world and we need to create links between investors to bring this capital to Brazil.”
Chris Mayo, Head of Primary Markets – Americas, London Stock Exchange
“We have seen a lot of innovation in the green finance agenda and in green bonds specifically, over the years. We have had huge success with India and China recently and we believe now is the time for Brazil to take advantage of this innovation.”
Justine Leigh-Bell, Head of Market Development, Climate Bonds Initiative
“This is an opportunity for the world to see that Brazil has the potential to be a leader in the green finance agenda. There is a lot of work to be done, but the Council and our work with FEBRABAN are the perfect starting point.”
Last word
The Partnership is another important step towards establishing a strong green bond market in Brazil. It is a commitment by local stakeholders and the UK to develop sustainable finance that will help Brazil meet its Paris targets (NDCs) and national development goals.
Let us conclude with the last words of the Minister's speech:
“Brazil is often described as the ‘lungs of the world’. Let’s add capacity to those lungs. By working together. By bringing together Brazil’s next generation of global businesses and the UK’s unique expertise in finance. So we can show the rest of the world how sustainable growth can be achieved.”
(*) Article originally published by the Climate Bonds Initiative on August 2, 2017.
