At a pivotal moment for global development finance, the New Development Bank (NDB), led by its president Dilma Rousseff, has reaffirmed its commitment to promoting green finance and reducing dependency on foreign currencies.
Speaking at an event in Rio de Janeiro, Rousseff announced that 25% of the NDB’s current lending portfolio is already denominated in the local currencies of BRICS countries, with a target of reaching 30% by 2026.
“Dealing with this challenge requires a multifaceted approach. One of the most promising solutions involves expanding the use of local currencies, as it generates lower interest rates and helps mitigate exchange rate risks,” Rousseff emphasized.
This strategy is not only seen as a way to shield emerging economies from currency volatility but also to strengthen financial sovereignty within the BRICS bloc.
The bank’s focus on sustainability is equally assertive. Rousseff noted that 40% of the NDB’s financing is devoted exclusively to sustainable infrastructure and energy projects. This initiative is reinforced through partnerships with national development banks, such as Brazil’s BNDES, to drive climate action and reduce inequality.
Environmental priorities are becoming central to the BRICS economic strategy. “Placing environmental sustainability at the heart of economic strategies is even more urgent for the Global South,” Rousseff stated, underscoring the need for innovative funding approaches and cooperative frameworks.
Aloizio Mercadante, president of BNDES, echoed Rousseff’s sentiments, revealing Brazil’s plan to establish a national carbon-credit certification body.
“If we are a major provider of strategic resources, we must compete for certification,” he declared. Mercadante highlighted the BRICS alliance as “an extraordinary diplomatic innovation” and stressed the need for public banks to lead the green transition.
“Public banks need to be green,” Mercadante said, noting they handle 40% of Brazil’s credit and have a critical role in overcoming both the climate crisis and the global governance vacuum.
The event also featured Chinese ambassador Zhu Qingqiao, who affirmed the complementary nature of Brazil-China relations in sustainability. “China and Brazil are constructive forces in global sustainability,” he assessed.
As the world faces interconnected climate and financial crises, BRICS’ coordinated push for green finance and local currency lending may mark a turning point for emerging economies striving for greater autonomy and resilience.
