BNDES to chair D20, group of major development banks

Brazil’s National Bank for Economic and Social Development (BNDES) will chair the D20 Long-Term Investors Club for the next two years. The group brings together the world’s 20 largest long-term investors and financial institutions. It is the first time BNDES holds this position.

The BNDES will share the presidency with the European Investment Bank (EIB). The members of the club are mainly from the G20—a group that brings together the world’s largest economies, the European Union, and the African Union.

The formalization of the BNDES as co-chair took place at the D20 meeting in Dubai, United Arab Emirates, in parallel to the United Nations Climate Conference (COP28). The Brazilian bank was elected unanimously.

Energy transition

According to BNDES President Aloizio Mercadante, D20 is one of the most relevant spaces for strategies to tackle the climate crisis, which he described as “dramatic.”

D20 members have shown a long-term financing style. The advantages of loans lasting decades is that the conditions for borrowers are more stable and less vulnerable in times of crisis.

“We have a big challenge in the energy transition and the decarbonization of industry. This should be at the top of our priorities,” said Mercadante.