Supporting institution

BDMG

Banco de Desenvolvimento de Minas Gerais

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Last updated: August 2023

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Overview of climate mainstreaming approach and goals:

Banco de Desenvolvimento de Minas Gerais (BDMG) is a state-level development bank in Brazil, under the control of the State of Minas Gerais. Established in 1962, the bank offers financial services to businesses across all sectors and supports public infrastructure projects.

BDMG achieved a significant milestone in its sustainability practices with the introduction of the Social, Environmental, and Climate Responsibility Policy (PRSAC, in Portuguese) in 2022. This policy comprises a set of principles and guidelines that guide the Bank’s strategic initiatives. It is in alignment with the Minas Gerais State Climate Action Plan, which aims to achieve net greenhouse gas emissions neutrality by 2050 as part of the Race to Zero Campaign.

BDMG has successfully raised both international and domestic funds to support green, innovative, and agribusiness projects. Additionally, the bank has fostered essential technical cooperations. For example, BDMG partnered with the InterAmerican Development Bank (IDB) in a pilot project to test a physical climate risk assessment tool. Furthermore, in collaboration with Agence Française du Development (AFD), BDMG has been developing methodologies to measure and mitigate climate and socio-environmental risks, expanding its portfolio linked to the Sustainable Development Goals (SDGs), and implementing its climate strategy.

In 2022, the Bank disbursed a total of BRL 2,422.8 million for companies and municipalities, benefiting 5,182 clients. Among the funded projects, those related to energy efficiency and renewable energy received BRL 234.7 million, marking a significant increase of 39% compared to the same period in 2021. Notably, photovoltaic solar energy projects accounted for 68% of the total disbursements.

The LabAgroMinas Program is another remarkable initiative focusing on sustainable agriculture. This program promotes climate-smart practices and the adoption of new agricultural technologies to reduce greenhouse gas emissions and promote soil regeneration.

Thanks to the successful implementation of photovoltaic solar energy projects and energy plants based on biomass, in 2022, BDMG has facilitated an installed capacity of over 140MW. These projects are estimated to generate 630 GWh/year of renewable energy, enough to supply an average of 210 thousand families of four. Furthermore, these initiatives are expected to prevent the emission of almost 40,000t of CO2e/year, making a significant contribution to mitigating climate change.