Oct 8 (Reuters) – Brazil’s government on Wednesday detailed a new Eco Invest auction to attract foreign equity into innovation and sustainability projects, offering a foreign-exchange hedge mechanism for the first time.
The government will channel Climate Fund resources to financial institutions to structure foreign-exchange and performance risk-hedging mechanisms, which the Finance Ministry said would enable long-term investment in Latin America’s largest economy.
Financial institutions must submit proposals by November 19, according to the ministry.
“A good outcome would be launching three or four private equity funds totaling around 2 billion reais to 4 billion reais ($375 million-$750 million),” said Treasury Secretary Rogerio Ceron at a press conference.
As in previous auctions under the Eco Invest program, banks will be required to leverage private capital, specifying this time how much equity investment will be mobilized for supported funds and projects.
According to the government, proceeds from the auction will back tech-based firms and scale up startups developing projects in bioeconomy, energy transition and circular economy initiatives like bioplastics, solid waste management and battery recycling.
Launched last year, Eco Invest aims to attract foreign capital to long-term sustainable projects by leveraging public funds through innovative financing mechanisms.
The first auction was held in October 2024, followed by a second in August focused on restoring degraded pastureland. The two initiatives mobilized more than 75 billion reais, including 46 billion reais from foreign investors.
According to Ceron, a fourth Eco Invest auction is expected to be announced later this year, ideally before COP30, which Brazil will host in November in the city of Belem. The upcoming auction will focus on the Amazon biome and the bioeconomy.
($1 = 5.3350 reais)
Brazil Energy Insight 
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