The GCF should thoroughly assess the policies and practices of the BNDES and require conditions for its accreditation

The Board of the Green Climate Fund (GCF) is considering an application for accreditation of the Brazilian National Development Bank (BNDES, Banco Nacional de Desenvolvimento Econômico e Social). The accreditation process of the BNDES is an opportunity to strengthen the Bank’s policies and procedures designed to identify, address and remediate environmental and social impacts linked to its activities and operations.

With the new administration of President Jair Bolsonaro, Brazil is suffering severe setbacks in its environmental, social and climate policies and agenda. Brazilian environmental agencies are being dismantled, while renowned and effective mechanisms such as the Amazon Fund are at risk of becoming inoperative or even eliminated. In such a context, the effectiveness of the country’s environmental and social (E&S) governance and its instruments, agencies and institutions, risks being severely undermined.

In order to fulfil its mandate to promote a paradigm shift towards low-emission and climate resilient development pathways within the context of sustainable developmentthe GCF should ensure that local systems and institutions are adequately equipped to deliver the sustainability outcomes intended by the Fund. The GCF should carefully assess BNDES’ existing E&S policies and procedures and ensure that approval is conditioned upon commitments and measurable steps by the Bank, with political support from the Brazilian government, to further strengthen its policies and procedures to address following shortcomings related to:

1. Disclosure of environmental and social (E&S) information;
2. Design of E&S policies and monitoring tools;
3. Human rights standards and the rights of indigenous peoples and other traditional communities;
4. Grievance mechanism;
5. Commitments concerning climate change.