Brazil's Central Bank Sets New Rules for Eco Invest Innovation Funds
On 30 July 2024 the Conselho Monetário Nacional (CMN) approved a specific regime for the Eco Invest Brazil innovation funds. The new rules introduce a mandatory investment schedule: 25 % of the resources must be deployed within 24 months, a further 25 % within 36 months and the remaining 50 % within 60 months.
Remuneration limits are also defined: financial institutions providing capital to the funds may receive up to 2 % per year; the Eco Invest line itself carries a 1 % per‑year cap; and the total remuneration for operations and the catalytic‑capital tranche cannot exceed 3 % per year. The regime targets six strategic green sectors – green fertilizers, advanced green fuels, industrial automation and artificial intelligence, critical mineral processing, battery and energy‑storage systems, and green chemistry/biomaterials – and is intended to give investors predictability, attract private capital and support the fifth Eco Invest auction.
Proposals from financial institutions must be submitted by 20 August 2024.
Entities: Aloizio Mercadante · Azul Linhas Aéreas Brasileiras · Banco Nacional de Desenvolvimento Econômico e Social · Banco Nacional de Desenvolvimento Econômico e Social (BNDES) · Brazil · Brazilian Government · Brazilian airlines · Conselho Monetário Nacional (CMN) · Eco Invest Brasil · Eco Invest Brazil · GOL Linhas Aéreas · Green technology sectors
Claims
What the coverage asserts, and how well corroborated each claim is across sources.
- [● 2 SOURCES] BNDES allocated an additional R$5 billion for sustainable aviation fuel, maintenance, aircraft purchases, pre‑delivery payments and infrastructure, with rates from 6.5% to 7.5% and up to 144‑month ten
- [○ 1 SOURCE] Aviation fuel now accounts for 40‑45% of airline operating expenses, up from 29.4% in 2025.
- [● 2 SOURCES] The financing aims to mitigate the impact of higher aviation fuel costs caused by the war in the Middle East.
- [○ 1 SOURCE] About 57% of airline sector costs are linked to the dollar, while most revenue is earned in reais.
- [● 2 SOURCES] BNDES approved R$8 billion in working‑capital financing for airlines at 4% interest over 60 months.
- [○ 1 SOURCE] Higher fuel prices added an estimated R$3.7 billion to airline costs between April and June 2026.
- [○ 1 SOURCE] Brazil's Ministry of Ports and Airports requested an extension of the PIS/Cofins exemption on aviation kerosene until 31 December 2026.
- [○ 1 SOURCE] The current PIS/Cofins exemption on aviation fuel expires on 31 July 2026 and saves about R$0.07 per litre.
- [○ 1 SOURCE] BNDES approved an additional R$ 5 billion for sustainable aviation fuel, maintenance, aircraft acquisition and infrastructure, with interest rates between 6.5 % and 7.5 %. (BNDES)
- [● 3 SOURCES] Aloizio Mercadante, president of BNDES, said the resources will help maintain airline operations, preserve jobs and avoid route cuts. (Aloizio Mercadante)
- [● 4 SOURCES] The loans carry a fixed interest rate of 4 % per year. (BNDES)
- [● 5 SOURCES] BNDES approved a credit line of up to R$ 8 billion for Azul Linhas Aéreas, Ata Aerotáxi Abaeté, Gol Linhas Aéreas and Latam Airlines Brasil. (BNDES)