By Brazil Stock Guide – Brazil’s Treasury authorized the temporary and exceptional use of 26.4 billion reais ($5 billion) from the financial surplus of 15 public funds controlled by the executive branch to support reimbursable financing tied to climate policy.
The decision was published in an extraordinary edition of the Official Gazette on Thursday (21), according to Broadcast. The measure regulates part of Constitutional Amendment 136/2025 and requires the money to be used exclusively in financing programs linked to climate-change mitigation and adaptation.
Brazil’s state development bank BNDES will act as the federal government’s financial agent. The Treasury and BNDES will be responsible for monitoring the budgetary and financial execution of the funds.
The largest allocations will come from three funds. The Social Fund will provide 6.42 billion reais, while the Special Fund for the Development and Improvement of Federal Revenue Inspection Activities will transfer 6.22 billion reais. A similar fund linked to the Attorney General’s Office of the National Treasury will contribute 4.79 billion reais.
The total amount corresponds to part of the financial surplus recorded by the 15 funds on Dec. 31, 2025. The authorization will remain in effect until Dec. 31, 2030, after which the resources must gradually return to the original funds starting in 2031.
“The allocation will be valid until Dec. 31, 2030, and the resources must be gradually returned to the funds of origin, from 2031 onward, according to the amortization schedule of the financing contracted with these resources and also observing the operational procedures of BNDES, as the federal government’s financial agent,” the ordinance said.
The rule also states that proceeds from repayments and financial charges on loans made with the transferred resources will return proportionally to the original funds.
“Amounts from the amortization and financial charges of financing granted with transferred resources will return proportionally to the amounts allocated from the funds,” the ordinance added.
BNDES must prepare annual reports detailing transferred and applied amounts, available balances, expected repayments and the effect of the financed projects on Brazil’s climate mitigation and adaptation targets.
Other funds included in the measure are the Merchant Marine Fund, with 3.07 billion reais; the Aeronautical Fund, with 2.10 billion reais; and the Student Financing Fund, with 845.9 million reais.
The list also includes the Naval Fund, with 455.8 million reais; the Amazon Development Fund, with 694.7 million reais; and the Coffee Economy Defense Fund, with 559.7 million reais.
Smaller allocations will come from the Aviation Fund of Brazil’s civil aviation regulator ANAC, with 355.4 million reais; the Army Fund, with 313.1 million reais; and the National Anti-Drug Fund, with 191 million reais.
The remaining allocations include 169.6 million reais from the Maritime Professional Education Development Fund, 151.7 million reais from the National Traffic Safety and Education Fund, and 118.5 million reais from the Diffuse Rights Defense Fund.
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