A new partnership has been formed to promote sustainable finance in Brazil and further align the banking sector with the commitments in the Paris climate agreement.

The Brazilian Federation of Banks (FEBRABAN) and the International Finance Corporation (IFC), a member of the World Bank Group, have signed a memorandum of understanding towards good climate risk management practices in bank portfolios, in addition to training and fostering new businesses in energy efficiency, sustainable agriculture, distributed solar power, green buildings and mobility, among other areas.

FEBRABAN is part of the Sustainable Banking Network (SBN) and has led the rollout in the region of voluntary and compulsory measures to foster sustainability in the sector.

An IFC study shows that to fulfil the commitments agreed by the countries to fight climate change, green businesses will invest more than $23 trillion (£16.6tn) globally by 2030.

In Latin America, the estimate is $2.6 trillion (£1.87tn), based on a study of the region’s four leading economies – Argentina, Brazil, Colombia and Mexico.

The most important sectors will be transport, green buildings, renewable energy and energy efficiency, with investment in Brazil estimated at $1.3 trillion (£0.9tn) by 2030.

Isaac Sidney, President of FEBRABAN said: “We play a key role in channeling resources to projects and activities that contribute to sustainable development. We are engaged in the development and adoption of various measures to make economic activities more efficient, more resilient from the climate point of view and aligned with the conservation of natural capital.

“Businesses that embrace the conservation of natural resources as a premise and that aim for greater social well-being provide major opportunities for the sector,”