Catalytic SMA (G) (“CSG”)

Brazil has committed to cut its greenhouse gas emissions, and decarbonising industry and scaling up energy storage and sustainable fuels needs significant investment. Its country platform, the Brazil Climate and Ecological Transformation Investment Platform (BIP), identified a shortage of equity capital as a key barrier to mobilising climate finance at scale.

The project will mobilise institutional capital into a Brazilian private equity fund, bringing together GCF concessional equity, the Brazilian Development Bank (BNDES) and Brookfield's Catalytic Transition Fund. Brookfield will manage the fund from origination through active ownership to exit. The fund aims to make around eight investments across three themes: clean energy, including renewables and battery storage; business transformation, decarbonising industrial facilities and processes; and sustainable solutions, including sustainable fuels, green hydrogen, circular economy and nature-based solutions.

The project was selected in a public call run by BNDES, secretariat of the BIP, the platform set up with GCF Readiness support. GCF's USD 250 million anchors a vehicle of up to USD 1.3 billion, and the blended-equity model aims to set precedents that lower perceived risk. It is the first GCF project from BNDES, a direct access entity.