According to reports, at last week's climate summit in Sao Paulo, Brazil stated that infrastructure expansion needs to be aligned with private investment and decarbonization goals, and that mandatory sustainability metrics should be included in concession contracts.
Soraya Pires, head of global carbon solutions at Brazilian environmental management company Ambipar, stated that identifying climate risks is crucial for corporate financial security. Investors need to factor in long-term environmental risks in concession contracts for roads, ports, airports, and other transportation infrastructure. Every US$2 invested in preventive measures before an extreme climate event occurs saves approximately US$12~14 in subsequent remediation costs.
According to estimates by the Brazilian National Institute of Industry (CNI), Brazil will invest about 228 billion reais (US$41.8 billion) in infrastructure by 2025, a 4.2% year-on-year increase.