Low Carbon Business Action in Brazil presents new estimates of the impact of its projects on the environment

Since 2015, Low Carbon Business Action in Brazil has supported European and Brazilian SMEs through technical and financial assistance in the development of initiatives with the potential to benefit sectors that contribute to the low carbon economy in Brazil. At the end of its cycle, which ends in May this year, the program financed by the European Union has new estimates of the environmental results of the approximately 75 initiatives that will be implemented.

380.810 tCO2 and equivalent per year can be prevented in the atmosphere thanks to the actions of the participating projects, which will be implemented in sectors such as renewable energy, energy efficiency in the industrial sector, waste management, precision agriculture, forest fire prevention and biogas. This is equivalent to the carbon stored in 2,396 hectares in the Amazon Forest.

The potential for recycling or reusing water will be equivalent to 8,506 Olympic swimming pools, while the water savings in agricultural and industrial processes will be 4,249,012 m³, which is equivalent to 1,700 Olympic swimming pools. The circular economy has become a necessity, given the scarcity of resources and the negative impact of the incorrect disposal of materials in the environment. The waste management and reuse projects participating in the program will contribute to the re-evaluation and reuse of waste equivalent to 1,429,933 garbage trucks.

It is understood that the evaluated projects complied with the completeness, consistency, transparency and precision of the environmental impact metrics, reaching a value that represents a real reduction when they reach their maturity. Six large projects supported by Low Carbon Brazil will be able to reduce, on average, more than 49 thousand tons of CO2 per year individually, especially by means of biogas and the implementation of solar energy.

The “rebate” values related to the reduction of CO2 emissions resulting from the use of new technologies were also analysed instead of the current process and energy sources. The indicator represents how much it costs to reduce 1 tCO2 for a specific project. To evaluate and compare various projects, the NPV (Net Present Value) of investments over each project or the difference in cost of a project divided by the undiscounted CO2 savings was used as a parameter. With this, it is estimated the weighted average of the carbon price (or cost of reduction) of the initiatives supported at 25.2 EUR/tCO2, in the European Trading System.

Most of the projects evaluated showed good indicators in this regard, demonstrating low cost to mitigate a large number of emissions. The ones that stand out the most in this regard are a precision agriculture project in partnership with Swedish Endless, for the production of rotated rice with soybeans and rye grass, and another for the production of biogas in chicken farms in Brazil with the tropicalization of Dutch Green ID technology for anaerobic digestion.

“Our role, through the program, was to help companies from member countries of the European Union and Brazil to form partnerships and access the technical and financial viability of their projects. An important part of this process is measuring the results that the actions will have in reducing greenhouse gas emissions, which is undoubtedly one of the main objectives of all the initiatives and, also, of the European Commission, which recently announced through the Green Deal the objective of reinforcing measures to fight against climate change”, observes Mercedes Blázquez, leader of Low Carbon Business Action in Brazil.

In 2020, Low Carbon Business Action will expand, in addition to Brazil and Mexico, to Canada, Chile, Argentina and Colombia, with a focus on promoting the circular economy. “With the project indicators that we were able to support in this first stage of Low Carbon Business Action in Brazil, we will have inputs to measure the success of the initiatives and understand the best paths to follow”, concludes Blázquez.

BNDES expands credit line for small and medium-sized companies

In 2020, the National Bank for Economic and Social Development extended the line to the BNDES Credit Small Business Line, with the extension of the credit limit and the inclusion of medium-sized companies in the financing modality. With the new measure, micro, small and medium industries will be able to strengthen their businesses through investments, innovation, new projects, and plan to expand day-to-day operations.

Small companies with revenues of up to R $ 4.8 million per year and medium-sized companies of up to R $ 90 million per year fit as beneficiaries. The credit line comprises R$ 10,000,000.00 per customer every 12 months. The application process can be carried out directly with the Financial Agents or through the BNDES MPME Channel, at the link: bit.ly/37ixUHV.

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