Incentives for Green Retrofit
Are there any government-funded or sponsored schemes for improving the energy efficiency of existing buildings and, broadly, how do they work?

In Brazil, incentives mainly relate to specific lines of credit granted by the BNDES, which apply to both building renovations and new constructions. The Environmental Line of Credit focuses on the promotion of environmental efficiency principles in projects, and the Energy Efficiency Line of Credit focuses on projects that intend to reduce a project’s environmental impact through the reduction of power consumption.

The BNDES is a state-owned financial institution that acts as an auxiliary agency in implementing the federal government’s credit and development policy. Furthermore, the National Energy Plan 2050 stipulates that the promotion of new public policy mechanisms in Brazil should be implemented in the area of energy efficiency, especially in buildings, through the agenda of minimum energy efficiency indexes, encompassing equipment, building envelopes and operational performance indices.

In relation to public procurement, Federal Decree No. 7,762/2012 created the Inter-ministerial Commission of Sustainability in the Public Sector (CISAP) and established the inclusion of sustainable parameters in bids promoted by governmental authorities and government-owned companies. When hiring building construction contractors, invitations to bid may impose the adoption of: (i) parameters of power efficiency; (ii) reduction of water consumption; (iii) preference for local raw materials; and (iv) obligation to use materials with certificates of regular origin, especially in relation to wood. The certifications may also be used as technical criteria when awarding contracts.

In addition, the Brasil Mais Produtivo (More Productive Brazil) program was created, bringing innovation to micro and small companies with the support of a local innovation agent, who applies an agile methodology to solve problems and optimize processes. The companies assisted will embark on a digital transformation journey that includes optimizing production processes and increasing energy efficiency, culminating in low-interest loans or non-refundable resources for adopting technologies linked to industry 4.0 (whose mode of production is based on work automation, robotics, artificial intelligence, data intelligence, among other innovations) and smart factories.

Additionally, Law 14.300, enacted in 2022, established a legal framework for micro and mini generation of energy. These modalities allow consumers to produce their own energy from renewable sources. This decentralized form of energy production is still being regulated and implemented in Brazil.