ICF Brazil – GOV.UK

International Climate Finance

International Climate Finance is a UK government commitment to support developing countries to respond to the challenges and opportunities of climate change.

ICF Brazil

Brazil is one of the ICF’s top four recipients, and ICF investments in Brazil focus on forests, agriculture, cities and infrastructure. The UK has committed £5.8 billion in ICF between 2016-2021, the amount doubled to £11.6 billion between 2021-2025. In May 2023 PM Rishi Sunak announced to president Lula UK’s commitment to the Amazon Fund of  around £80 million. To date, roughly £353 million of ICF has been committed to programmes that operate in Brazil.

UK Multilateral Programmes in Brazil

Green Climate Fund (£27.3 million)

The Green Climate Fund is a fund established within the framework of the United Nations Framework Convention on Climate Change as an operating entity of the Financial Mechanism to assist developing countries in adaptation and mitigation practices to counter climate change.

Forest Investment Programme – Climate Investment Funds (£25 million)

The Forest Investment Program (FIP) is a targeted programme of the Strategic Climate Fund (SCF) within the Climate Investment Funds (CIF). The FIP supports developing countries’ efforts to reduce deforestation and forest degradation (REDD) and promotes sustainable forest management.

Global Environment Facility(£7.1 million)

The Global Environment Facility (GEF) is a multilateral environmental fund that provides grants and blended finance for projects related to biodiversity, climate change, international waters, land degradation etc.

Clean Technology Fund – Climate Investment Funds(£4.5 million)

The Clean Technology Fund (CTF), one of two multi-donor trust funds under the Climate Investment Funds (CIF) framework, promotes scaled-up financing for low-carbon technologies, implementation in renewable energy, energy efficiency, and clean transport.

UK Bilateral programmes

REM – REDD Early Movers (£43 million)

The programme is a REDD+ results-based payment programme to reduce deforestation and support activities aimed at further protecting the forest, including through working with indigenous and vulnerable communities in the states of Acre and Mato Grosso. The UK and Germany have been partners in this initiative since 2017, with the aim of strengthening forest governance and emission reduction.

LEAF

The LEAF Coalition is a public-private initiative designed to scale private finance for the protection of forests through the voluntary carbon market. LEAF accepts proposals for jurisdictional REDD+ credits from both national and subnational governments.

LEAF was launched in April 2021. In the space of 8 months, it secured an initial $1 billion of investments, and 23 eligible forest jurisdiction applications. The announcement was made at the COP26 World Leader’s Summit event on Forests and Land Use. This is only the beginning, and LEAF aims to kick-start a self-sustaining market for high integrity forest carbon credits.

Amazon Fund(£80]( million)

The Amazon Fund is a REDD+ mechanism created to raise donations for non-reimbursable investments in efforts to prevent, monitor and combat deforestation, as well as to promote the preservation and sustainable use in the Brazilian Amazon.

The Amazon Fund supports projects related to:

• management of public forests and protected areas;
• environmental control, monitoring and inspection;
• sustainable forest management;
• economic activities created with sustainable use of the vegetation;
• ecological and economic zoning, territorial arrangement and agricultural regulation;
• preservation and sustainable use of biodiversity; and
• recovery of deforested areas.

Partnerships for Forests (P4F) (£24 million)

The programme is supporting work to reduce deforestation and grow forest businesses in partnership, with public, private and civil society partnerships. This programme provides grants and technical assistance to reduce deforestation and support rural economies through:

• the development of forest partnerships, from concept through to commercial scale-up,
• enabling conditions and
• demand-side measures.

Mobilising Finance for Forests – FMO (£10.7)

Mobilising Finance for Forests (MFF) was established in 2021 by the United Kingdom government and FMO as a blended finance investment program to combat deforestation and other environmentally unsustainable land use practices contributing to global climate change.

Rural Sustentavel (PRS) (£72.3 million)

The Program contributes to a transition in the agriculture and cattle-raising sector in Brazil’s main biomes, collaborating to mitigate Greenhouse Gas emissions, while effectively supporting the implementation of Brazilian policies focused on climate, territories, and income.

It improves livelihoods for small and medium-sized farmers by structuring production chains and implementing sustainable production practices and appropriate land management.

This project focuses on the Amazon rainforest, Atlantic Forests, the Cerrado and Caatinga biomes. It is restoring deforested and degraded land on small and medium sized farms to improve agriculture productivity through low carbon agriculture practices, whilst developing forest conversion-free value chains.

UK Sustainable Infrastructure Program (UK SIP) (£22.5 million)

The UK Sustainable Infrastructure Program (UK SIP) aims to enable and accelerate the implementation of the Nationally Determined Contributions (NDCs) in countries in the Latin America and Caribbean region by catalysing and mobilising strategic private sector investments in sustainable low-carbon infrastructure.

UK Pact (£15 million)

UK Partnering for Accelerated Climate Transitions (UK PACT) supports countries that strive to overcome barriers towards clean growth and have high emission reduction potential to accelerate their climate change mitigation efforts.

There are three pillars to the UK PACT aims in Brazil:

*Greening Financial Systems – Aimed at projects that integrate climate-related financial risks and opportunities to accelerate the low-carbon transition and enable a green recovery.

*Nature Based Solutions – Promotes sustainable agriculture and forestry to enhance agroforestry, silvopastoral and regenerative practices to mitigate climate change and build resilient livelihoods and strengthen sustainable supply chains.

*Skill Sharing – A capacity building technical assistance for UK-based experts working directly (peer-to-peer) with counterparts in developing countries.

NAMA -Nationally Appropriate Mitigation Actions Facility (£18 million)

Supports developing countries and emerging economies that show an ambition to play a leading role in the field of climate protection. The Facility make the necessary funding available for these countries to begin implementing their NAMAs (Nationally Appropriate Mitigation Actions). NAMAs are voluntary climate protection measures, which are embedded in these countries’ national development plans. They are an important instrument for the achievement of nationally determined contributions (NDCs) under the Paris Agreement.

Partnership for Market Readiness (£0.2 million)

The PMR is a forum for collective innovation and action and a fund to support capacity building to scale up climate change mitigation.

*The PMR provides support to prepare and implement climate change mitigation policies—including carbon pricing instruments—in order to scale up GHG mitigation.

*Serving as a platform to share lessons, countries work together to shape the future of cost-effective GHG mitigation.