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New Industrial Decarbonization Hub to accelerate net zero projects in Brazil

04 April 2024

Industrial Decarbonization Hub Brazil

Brasilia, 26 March 2024 -  In a significant step towards fighting climate change, Brazil and the United Kingdom announced a comprehensive workplan for a new Industrial Decarbonization Hub that will facilitate partnerships between national and international stakeholders to implement mitigation, transition and decarbonization projects for the Brazilian industrial sector.

The United Nations Industrial Development Organization (UNIDO) will lead the implementation of the workplan and host the Hub Secretariat, comprised by UNIDO, the UK Government and the Leadership Group for Industry Transition (LeadIT). The Secretariat will work in coordination with the Brazilian Government through the Ministry of Development, Industry, Trade, and Services (MDIC).

The Hub will revolve around three pillars:

  • Institutional framework, to support policy development;
  • Project development and preparation, including support to connect with different partners to move forward industry decarbonization;
  • Research and innovation, including the creation of a knowledge and innovation center to foster knowledge sharing and cooperation and an incubation plan.

The workplan was launched during a roundtable discussion in Brasilia on 26 March involving representatives and experts from the UK Department of Energy Security and Net Zero (DESNZ), the UK Embassy in Brazil, MDIC and UNIDO, alongside local partners such as the Institute for Climate and Society (iCS).

The General Coordinator of Decarbonization from MDIC’s Department of Decarbonization and Green Finance, Gustavo Fontenele, explained that the Hub is part of a broader effort by the Brazilian Government to develop the country’s industrial decarbonization strategy.

“MDIC’s role in the Hub is to lead this process in the Brazilian territory and to open dialogue with the business and industrial sectors, especially basic industries. The UK Government will support the ministry in this process, and work with UNIDO within the Hub Secretariat. In addition, the UK will help Brazil by connecting stakeholders and bringing a pipeline of projects and climate financing possibilities to enable decarbonization, both within the scope of climate funds and available multilateral funds”, said Gustavo Fontenele.

The International Climate Finance Manager focused on energy and decarbonization of industries at the British Embassy, Elizabeta Albernaz, reiterates that the UK will help Brazil to connect important international stakeholders to achieve specific targets.

“The workplan we launched today will guide the Hub’s next steps from now until COP 30, so that we can deliver effective results for Brazil in the decarbonization agenda”, said Elizabeta Albernaz.

UNIDO’s Project Coordinator Rasha Abdrabu explains that the Hub will facilitate interactions between the Brazilian private sector and financial institutions.

“The workplan outlines a strategic roadmap for the Industrial Decarbonization Hub, designed as a platform to support green public policies and connect financial partners with local industrial needs from the private sector”, said Rasha Abdrabu.

The Hub’s workplan highlights several funding opportunities, such as public calls from the Mitigation Action Facility (MAF) and the Climate Investment Funds (CIF), as well as key strategies for the development of regulatory frameworks and the mobilization of private investment in industrial decarbonization projects.

Before the launch event, the UNIDO team was received by the British Ambassador to Brazil, Stephanie Al-Qaq, during a reception at the UK Residence in Brasilia.

Industrial Decarbonization Hub Brazil 2

About the Industrial Decarbonization Hub

The Industrial Decarbonization Hub is a collaborative platform co-organized by Brazil and the United Kingdom to mobilize and coordinate international assistance programmes to support Brazil's ambitions for industrial decarbonization and green industrialization. The Hub aims to leverage financial and technical resources to maximize the collective impact of activities supporting Brazil's industrial decarbonization goals.

This initiative was launched by a memorandum of understanding signed last year by the Vice President and Minister of Development, Industry, Trade, and Services of Brazil, Geraldo Alckmin, and the UK Secretary of State for Energy Security and Net Zero, Claire Coutinho.

The main goals are to develop and implement a National Industrial Decarbonization Strategy, to create regulatory frameworks on green policies and the carbon market, to facilitate private investment in industrial decarbonization projects through national and international matchmaking, to support research and innovation in key sectors via incubation programmes and knowledge exchange, and to accelerate the commercialization of clean energy technologies with pilot demonstration projects.

With the launch of its workplan, the Hub sets a bold agenda to coordinate, aggregate and simplify access to a full package of global financial and technical assistance to accelerate Brazil’s industrial decarbonization and the transition towards a circular economy.


Contact information:

Riccardo Savigliano