Infrastructure projects to be funded by green bonds – Decree n. 10.387/2020 established new mechanisms for the issuance of green bonds to finance infrastructure projects that offer relevant environmental or social benefits

Decree n. 10.387/2020 simplifies and accelerates the approval process of projects with environmental or social benefits so that they can access resources in the growing market of green finance through the issuance of incentivized infrastructure debentures. Specific projects belonging to the segments of urban mobility, basic sanitation, and renewable energy were considered: non-motorized public transportation and low-carbon public transportation; renewable technologies from solar, wind and waste energy generation and small hydroelectric plants; and systems of water supply, sewage, rainwater management, urban drainage, and solid urban waste management. The new rules change Decree n. 8.874/2016, which only considered as Priority Projects those subject to concession, permission, lease, authorization, or public-private partnership and that were part of the Investment Partnership Program.