BRASILIA, May 25 (Reuters) – Brazil expects to raise 50 billion reais ($9.92 billion) in what will be the most ambitious auction yet under its Eco Invest program, focused on developing advanced sustainable technologies in strategic sectors, Rogerio Ceron, executive secretary of the Finance Ministry, told Reuters.
The fifth auction, announced on Monday and the last under the current administration, will continue to use public funds from the Climate Fund to leverage private investment. Brazil is preparing a roadshow in the U.S., Europe and China to seek foreign capital, Ceron said.
Funds will be directed to six areas: green fertilizers; battery systems and critical minerals processing; sustainable fuels; automation and artificial intelligence in production; green chemistry; and circular use of mineral and industrial waste.
Brazil is trying to position itself in strategic sectors despite structural bottlenecks, including efforts to establish a regulatory framework for critical minerals and attract data center investment, while seeking clean energy funding amid global geopolitical concerns.
Six innovation funds will be created, each receiving 1.5 billion reais in public capital, with private investors allowed to contribute up to twice that amount. Additional credit of up to 1 billion reais per fund will support project financing, with higher private leverage required.
At least 0.5% of total mobilized resources will fund research and entrepreneurship, with a minimum 10% of each fund’s portfolio tied to companies working with research institutions or localizing foreign technologies.
Bids, open until July, must include 15%–45% foreign capital.
If supported projects exceed expectations, part of the additional gains will be shared with the Treasury, generating returns for the government if the program proves successful, Ceron said.
($1 = 5.0401 reais)
(Reporting by Bernardo Caram/ Writing by Isabel Teles; Editing by David Gregorio)
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