Brazil Energy EcoInvest

EcoInvest Brasil is a federal initiative that mobilizes private and international capital to advance Brazil’s low-carbon transition, energy security, and bioeconomy. Using a blended-finance model combining public catalytic capital and private investment, the program reduces financial risk and enables scalable deployment of low-carbon energy, bioenergy, and bio-based industrial projects.

Auctions and Impact
•    First auction (2024): Allocated USD 8.2 billion to energy projects including biogas, biofuels, and clean hydrogen.
•    Second auction (2025): Raised USD 5.6 billion, expanding to land restoration and agroecological productivity, indirectly supporting energy security by diversifying bioenergy feedstocks.
•    Third auction (upcoming): Introduces equity investment and a foreign-exchange hedge mechanism for early-stage and scale-up ventures in bioenergy, low-carbon fuels, and low-emission technologies, reinforcing Brazil’s commitment to a resilient energy system.

Mechanism and Strategic Purpose
Launched in 2024 by the National Treasury, EcoInvest leverages public funds to derisk private investment in projects with climate and resource-efficiency benefits. Guarantees, subordinated capital, and credit enhancements amplify public capital, unlocking financing critical to Brazil’s energy transition, bioeconomy, and circular economy. By supporting domestic low-carbon energy and bio-based production, EcoInvest reduces exposure to global fuel price fluctuations and strengthens energy supply reliability in industrial and transport sectors.

Policy Implications and Outlook
EcoInvest offers a scalable, risk-mitigated model for advancing Brazil’s energy transition. By combining catalytic capital, equity participation, and hedging mechanisms, the program enables projects in bioenergy, energy-efficient industrial processes, and bio-based materials. These initiatives reduce emissions, enhance energy security, and diversify Brazil’s energy matrix, while fostering public-private collaboration and predictable risk-sharing.

The program also presents opportunities for U.S. companies with expertise in low-carbon energy, bioenergy, and advanced industrial processes to partner with local firms or invest in early-stage ventures, strengthening Brazil’s energy security while accessing high-growth emerging-market sectors.

For more information on opportunities for U.S. companies, please contact Igly Serafim igly.serafim@trade.gov, Energy Commercial Specialist, U.S. Commercial Service, São Paulo.