BELIZE CITY, BELIZE (Aaron Simonsky, Energy Analytics Institute, 6.Feb.2025) — Petrobras is allocating R$50mn to establish an Impact Fund for Bioeconomy and Nature-Based Solutions Socio-Environmental Projects (dubbed the Petrobras Bioeconomy Fund), with Régia Capital, a management firm focused on sustainable investments and financial solutions, that is contributing an additional R$50mn.
This is a voluntary socio-environmental investment by Petrobras, complementing the company’s other social responsibility initiatives, the company said 6 Feb. 2025 in an official statement.
“The fund aims to support socio-environmental projects in Brazil with the goal of transforming them into sustainable businesses that generate large-scale positive impacts, preserving Petrobras’ allocated capital while leveraging these initiatives,” Petrobras said.
Petrobras said any financial return will be reinvested to further scale the socio-environmental benefits.
Selection of projects will prioritize initiatives in areas deemed critical for climate action and biodiversity preservation, such as the Amazon; actions in regions under deforestation pressure; initiatives with a positive impact on job and income generation; projects with the potential to generate high-integrity carbon credits; and biodiversity credits as well as fauna and flora restoration.
The Petrobras Bioeconomy Fund is a first in Brazil to adopt the Impact Linked Compensation model, which aligns financial incentives with sustainability objectives. That is, the fund’s performance fee varies according to the socio-environmental impact rate of the projects.
The fund also has its own governance structure for project selection, considering economic, social, environmental, innovation, and sustainable development impact indicators. With these innovative financial mechanisms, the fund aims to become a scalable hub of support for the development of Brazil’s bioeconomy sector.
The selection of Régia as the manager of the Petrobras Bioeconomy Fund was made through a competitive process involving proposals from various institutions. Régia is a sustainable investment platform created by JGP and BB Asset, Petrobras said.
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