Government Cancels Climate Fund Financing for Luxury Buildings

The federal government has ordered the cancellation of financing for ten luxury buildings. The funds originated from the Eco Invest program, which is linked to the Climate Fund. The measure follows the discovery that public funds with interest rates of 1% per year were used for high-end developments.

Banco do Brasil allocated R$ 1.15 billion to these projects under the justification that the construction work adopted energy and water-saving measures. This criterion allowed buildings with units valued at up to R$ 6.89 million to access subsidized credit. The rate offered by the program is significantly lower than the 10.94% per year charged on fixed-rate real estate loans by Caixa.

Minister of Environment and Climate Change João Paulo Capobianco confirmed the revision of the granting criteria. The government has initiated the process to annul the acts that allowed the use of the fund for such construction projects. The goal is to prevent climate credit from being directed toward luxury real estate in the future.

The developments affected by the decision are located in several Brazilian cities. Examples cited include projects in Goiânia, Nova Lima, Rio de Janeiro, Campo Grande, Sorocaba, Foz do Iguaçu, Penha, and Palmas. The program also serves families with a monthly income between R$ 2,500 and R$ 3,000, a group that remains outside the scope of the cancellation review.