BRAZIL ANNOUNCED AS THE FIRST COUNTRY PARTNER OF THE INDUSTRIAL TRANSITION ACCELERATOR (ITA) TO HELP ACCELERATE INVESTMENT IN DEEP DECARBONISATION
- The Industrial Transition Accelerator and the Brazilian Ministry of Development, Industry, Trade and Services announce partnership to help catalyse investment in green industry in Brazil
- Call for Expressions of Interest released to Brazilian private sector to identify decarbonisation projects
July 17th 2024, Brazil – Today, the Secretary of Green Economy, Decarbonization and Bioindustry from the Ministry of Industry, Development, Trade and Services (MDIC), Rodrigo Rollemberg, and Executive Director of the Industrial Transition Accelerator and CEO of the Mission Possible Partnership (MPP), Faustine Delasalle, announced that Brazil will become the first Country Partner of the ITA, a global, multi-stakeholder initiative to catalyse decarbonisation across heavy-emitting industrial sectors. The ITA Secretariat is hosted by MPP.
The partnership between ITA and MDIC will support Brazil’s ambitious green growth agenda: the country’s Ecological Transformation Plan and $60bn Nova Indústria Brasil Plan aim to reduce emissions while growing the sustainable industries of the future. Brazil has a significant industrial base, an abundance of natural resources and access to low-cost renewable energy, making it well positioned to establish itself as a global powerhouse for producing green industrial goods. The ITA will help to strengthen the investment case for Brazil’s emerging green industries to mobilise the much-needed capital to decarbonise the global economy.
The partnership will support this ambition through the ITA Brazil Project Support Programme. The programme will identify and support large-scale industrial projects with potential for deep decarbonisation that can be accelerated toward final investment decision (FID) by COP30 and operational by 2030. Specifically, the programme will progress the country’s portfolio of green industrial projects by addressing policy and regulatory needs, building low-emissions value chains, stimulating demand for green goods, and identifying mechanisms to de-risk project investment. The ITA Brazil Programme will also work alongside the Brazil Climate Transition Platform, currently under development by the Brazilian Development Bank (BNDES) and the Glasgow Financial Alliance for Net Zero (GFANZ), to support financing of projects aligned with the government's climate transition plans.
Alongside today’s announcement, ITA and MDIC have launched a call for Expressions of Interest to invite private sector organisations to participate in and benefit from the ITA Brazil Programme. The call is being launched in coordination with the Brazil-UK Industrial Decarbonisation Hub (ID Hub) and aims to identify projects across heavy-emitting sectors[1] that have the potential for deep decarbonisation at scale and employ breakthrough technologies that are approaching commercial maturity.
Brazil will also help shape the ITA’s broader efforts to improve the environment for investment in deep decarbonisation technologies and solutions across the globe, with a focus on policy, value chain, and finance issues that would benefit from increased international cooperation.
[1] Projects linked to assets in the aluminium, cement, chemicals (including fertilisers), steel, aviation, and shipping sectors and ideally address the most emissions-intensive activities in those sectors
“With our Ecological Transformation Plan and Nova Indústria Brasil, we are on the right path to becoming the leading green industrial economy in Latin America and a global force for decarbonization,” said Secretary of Green Economy, Decarbonization and Bioindustry from the Ministry of Industry, Development, Trade and Services, Rodrigo Rollemberg. “With the help of ITA, we will be able to identify and support projects that will lead to decarbonization in our high-emission sectors, providing access to private investment and fostering industry, and ensure Brazil’s position as a leader in the global transition to clean energy.”
“Curbing carbon emissions in heavy industry is crucial to tackling climate change, and Brazil is well positioned to help lead the way,” said Michael R. Bloomberg, UN Secretary-General’s Special Envoy on Climate Ambition and Solutions, Founder of Bloomberg L.P. and Bloomberg Philanthropies, and ITA Co-Chair. “As the first country to partner with the Industrial Transition Accelerator, Brazil can help show that progress is possible across the region and around the world. We’re glad to support Brazil’s clean energy transition, which will help improve public health, increase economic growth, and save lives."
“The UAE is delighted to welcome Brazil as a Country Partner to the ITA to further support international momentum towards greener industry that we set in motion at COP28,” said Dr. Sultan Al Jaber, UAE Minister of Industry and Advanced Technology, COP28 President, and ITA Co-Chair. “COP28 marked a global milestone for industrial decarbonisation, with the launch of several landmark initiatives, including the Industrial Transition Accelerator. The ITA Brazil Project Support Programme is a step in the right direction to leverage international heft in decarbonising heavy emitting industries. We look forward to more such action in upcoming months.”
"Heavy-emitting industries like steel, chemicals and aviation have a crucial role to play to get to our shared goal of limiting global temperature rise to 1.5°C this century,” said Simon Stiell, UN Climate Change Executive Secretary and ITA Co-Chair. “The Industrial Transition Accelerator will help drive the investment and innovation essential for transforming these sectors. The solutions supported by the ITA in Brazil and other countries in the coming years will help speed up the decarbonization of these vital sectors."
“For too long, the decarbonisation of heavy emitting industries has been held back by insufficient demand for greener products, regulatory barriers, immature technologies, and the absence of large-scale transition finance,” said Mark Carney, UN Special Envoy on Climate Action and Finance, GFANZ Co-Chair, and ITA Co-Chair. “The ITA can spring these industries from their transition traps – helping boost investment and create new jobs as they transition to net zero. We are thrilled to partner with the Brazilian government to catalyse the decarbonisation of Brazilian heavy-emitting industries, and—through their innovations, investments and examples—the world’s.”
“In view of the great potential to decarbonise Brazil’s heavy industry and transport sectors and seize new economic opportunities opened by the industrial transition, the ITA is delighted to partner with the Brazilian government to accelerate its emerging pipeline of green industrial projects,” said Faustine Delasalle, Executive Director of the ITA Secretariat and Chief Executive Officer of the Mission Possible Partnership. “The ITA will focus on supporting Brazilian and international companies, connecting them with financiers and leveraging the recent policy developments in Brazil, to progress their deep decarbonisation projects to final investment decisions within the next two years.”
As part of the partnership, the ITA and ID Hub welcome Expressions of Interest from private sector organisations in Brazil: Call for Expressions of Interest
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About the Industrial Transition Accelerator
The Industrial Transition Accelerator (ITA) is a global multi-stakeholder initiative to catalyse decarbonisation of heavy-emitting industry and transport sectors. Launched in December 2023 at the COP28 World Climate Action Summit by the COP28 Presidency, United Nations Climate Change, and Bloomberg Philanthropies, the ITA brings together global leaders from across industry, financial institutions, and governments to unlock investment at scale for the rapid deployment of decarbonisation solutions. The ITA is funded by Bloomberg Philanthropies and the UAE.
The ITA Secretariat is hosted by the Mission Possible Partnership (MPP). The ITA works in partnership with global institutions, global corporate and finance conveners and sectoral industry groups among others to speed up collective action for industrial decarbonisation.
Within three years, the ITA aims to significantly grow the pipeline of commercial-scale, clean industrial projects across heavy industry (aluminium, cement, chemicals, and steel) and transport (aviation and shipping) – sectors which currently account for a third of global emissions –, and in their energy supply chains. While progress is being made, the current speed and scale of deployment is insufficient. A critical mass of deep decarbonisation projects must reach final investment decision (FID) by 2026 to be operational by 2030 and keep alive the goal of limiting warming to 1.5°C.