Caixa Econômica’s Role in Climate Finance in Brazil
By Luan Felipe Gloria (CFC-GS/UFPA) Caixa Econômica Federal (Caixa) plays a key role in Brazilian climate finance; it differs from the Brazilian Development Bank (BNDES) in that its focus is on urban development, housing, sanitation, and support for small municipalities. Caixa seeks to provide the financial conditions to promote cities’ adaptation to climate change, including projects such as the revitalization of sewage systems, the expansion of public transportation, the paving of roads to accommodate cyclists, and the expansion of renewable energy systems, among other initiatives. In this context, Caixa has an important financing fund called Support for Infrastructure for Recovery and Adaptation to Extreme Weather Events (FIRECE). This fund was created in response to the climate crisis in Rio Grande do Sul, where thousands of families were affected by severe flooding in the state in 2024. Thus, the focus of these investments is to transform urban infrastructure, as in the case of Rio Grande do Sul, so that cities directly affected by extreme weather events can be sufficiently adapted. In addition to the immediate reconstruction of affected areas, Caixa’s efforts through FIRECE have expanded to include preventive measures and long-term planning. Recognizing that disaster mitigation depends directly on the technical quality of municipal projects, the institution has established specific service lines focused on training and consulting in engineering and architecture. This measure primarily addresses the needs of small municipalities, which historically face severe technical and financial constraints in designing drainage and flood control plans that meet new climate standards. In parallel with efforts to restore watersheds and protect against flooding, the institution’s green portfolio aligns with goals for sustainable housing and urban mobility. Through established territorial development and sanitation programs, Caixa channels resources that require strict criteria for eco-innovation and low-carbon efficiency in contracted public works. This systemic approach ensures that new real estate and basic infrastructure investments not only withstand immediate environmental pressures but also reduce the ecological footprint of Brazilian cities. Finally, the consolidation of Caixa Econômica Federal as the country’s leading urban development bank is gaining prominence on the international agenda and in preparations for global commitments, as was the case at COP 30. By obtaining direct accreditation with multilateral organizations, such as the Green Climate Fund, the bank significantly expands its capacity to attract foreign investment. This global financial alignment enables the strengthening of strategic initiatives, such as the Resilient Cities program, consolidating the institution’s role in promoting a just climate transition that protects vulnerable populations from new socio-environmental crises. You can read more articles about climate finance on our blog and access financing data on our tracker. Check it out! REFERENCES BRASIL. Casa Civil da Presidência da República. Fundo de Apoio à Infraestrutura para Recuperação e Adaptação a Eventos Climáticos Extremos. Brasília, DF: Casa Civil, [2025]. Disponível em: https://www.gov.br/casacivil/pt-br/acesso-a-informacao/fundos/fundo-de-apoio-a-infraestrutura-para-recuperacao-e-adaptacao-a-eventos-climaticos-extremos. Acesso em: 25 maio 2026. CAIXA ECONÔMICA FEDERAL. CAIXA lança nova linha de atendimento do FIRECE para desenvolvimento de projetos de adaptação à mudança do clima. Brasília, DF: CAIXA Notícias, 10 nov. 2025. Disponível em: https://caixanoticias.caixa.gov.br/Paginas/Not%C3%ADcias/2025/11-NOVEMBRO/CAIXA-lan%C3%A7a-nova-linha-de-atendimento-do-FIRECE-para-desenvolvimento-de-projetos-de-adapta%C3%A7%C3%A3o-%C3%A0-mudan%C3%A7a-do-clima.aspx. Acesso em: 25 maio 2026. CAIXA ECONÔMICA FEDERAL. FIRECE: Fundo de Apoio à Infraestrutura para Recuperação e Adaptação a Eventos Climáticos Extremos. Brasília, DF: CAIXA, [2025]. Disponível em: https://www.caixa.gov.br/poder-publico/modernizacao-gestao/firece/Paginas/default.aspx. Acesso em: 25 maio 2026. CAIXA ECONÔMICA FEDERAL. Mudanças Climáticas e Finanças Verdes. Brasília, DF: CAIXA, [2025]. Disponível em: https://www.caixa.gov.br/sustentabilidade/negocios-sustentaveis/financas-verdes/Paginas/default.aspx. Acesso em: 25 maio 2026.
