MOBILIST and B3 highlight the potential of public markets for sustainable finance in Brazil

Public markets should play a significant role in mobilising private capital toward sustainable development and a just climate transition in Brazil and other emerging markets.

MOBILIST and B3 The Brazilian Stock Exchange (B3 S.A. – Brasil, Bolsa, Balcão) recently hosted two events in Sao Paulo to bring together market participants, policymakers, and development finance specialists to accelerate capital mobilisation for sustainable development via public markets.

The first event took place at the British Consulate in Sao Paulo. Stephanie Al-Qaq, the UK Ambassador to Brazil, and Lucas Ferraz, the Secretary of International Affairs of the Sao Paulo State Government, attended. Alok Sharma, Former President of COP26, was also present.

 Stephanie Al-Qaq, the UK Ambassador to Brazil, says: “Urgent action is needed to mobilise private capital at scale to deliver the Sustainable Development Goals (SDGs) and climate transition in Brazil and other emerging markets. MOBILIST highlights the unique contribution public markets can make in closing the SDG financing gap. The UK is proud to support development and climate action in Brazil through bilateral spending and by advocating for international financial system reforms.”

Last week, the UK also announced $1m to support Brazil’s Finance Ministry in creating a new Foreign Exchange Hedge Platform to reduce FX barriers to green investment in Brazil.

The second event, hosted by B3, focused on sharing learning from MOBILIST’s pipeline and portfolio, such as infrastructure securitisation, closed-end investment companies, guarantees of listed instruments, corporate IPOs and SPACs. Participants also considered what domestic, regional, and global policy and regulatory enablers are required to scale private capital mobilisation through the public markets.

Ross Ferguson, FCDO MOBILIST Programme Lead, says: “Brazilian capital markets have the potential to play a far bigger role in financing the firms that will help solve Brazil’s environmental and developmental challenges. MOBILIST, in partnership with B3, offers tangible support to help identify and enable new product structures to list, scale and replicate in Brazil and across the region.”

Cesar Sanches, B3 Head of Sustainability, says: “MOBILIST can play a crucial role in paving the way towards a more resilient ecosystem of listed financial products that will fast-track the transition significantly, helping to turn billions of public money into trillions of sustainable investment. This is extremely relevant in the Brazilian context given the country’s unique potential to become a sustainability powerhouse.”