Forging a Sustainable Future: The U.S. Treasury and Brazil's Fazenda Partner to Tackle Climate Change

In a groundbreaking move, the U.S. Treasury Department and Brazil's Ministry of Finance, known as the Fazenda, have announced a strategic partnership to align their best environmental and climate policies. This collaboration aims to address the pressing global challenge of climate change while fostering economic development and sustainable growth between the two nations.

Unlocking the Potential of Climate-Driven Economic Prosperity

Strengthening the Climate-Development Nexus

The Brazil Fazenda-U.S. Treasury Climate Partnership represents a significant step forward in the global fight against climate change. By combining the expertise and resources of these two economic powerhouses, the initiative seeks to catalyze public and private efforts to create climate-friendly jobs and policies that prioritize environmental protection. This partnership recognizes the intrinsic link between climate action and economic development, acknowledging that well-designed policies in these areas can serve as mutually reinforcing catalysts for sustainable growth.

Leveraging Shared Commitments and Deep Ties

The announcement of this partnership builds upon the longstanding economic relationship between the United States and Brazil, two of the largest economies in the Western Hemisphere. Both countries share a deep commitment to sustainable and inclusive development, making them well-positioned to lead the charge in addressing the climate crisis. Treasury Secretary Janet Yellen emphasized the significance of this collaboration, stating, "Brazil and the United States have a deep economic relationship through trade and investment, and we both recognize that climate and development go hand in hand."

Addressing the Urgent Threat of Climate Change

The recent devastating floods in Rio Grande do Sul, southern Brazil, serve as a stark reminder of the grave consequences of climate change and the pressing need for resilient infrastructure to protect lives and livelihoods. As Yellen aptly noted, "It was one of far too many recent tragedies that reveal the grave threat that climate change and the loss of natural and biodiversity means to lives, livelihoods and economies around the world." This partnership aims to tackle these challenges head-on, leveraging the collective expertise and resources of the U.S. Treasury and Brazil's Fazenda to develop innovative solutions that safeguard communities and foster sustainable economic growth.

Fostering Collaboration and Shared Priorities

The Brazil Fazenda-U.S. Treasury Climate Partnership builds on the significant efforts of teams at both institutions in recent years. Since the start of the Biden administration, the U.S. Treasury has worked to increase collaboration with Brazil on shared priorities related to climate and the environment. This new partnership represents a further strengthening of these ties, as the two countries work together to drive climate change initiatives forward and pave the way for a more sustainable future.

Unlocking the Power of Public-Private Partnerships

At the heart of this collaboration is a recognition that addressing the climate crisis requires a multifaceted approach, involving both public and private sector efforts. The partnership aims to foster such synergies, leveraging the resources and expertise of governments, businesses, and civil society to develop and implement effective climate policies and initiatives. By harnessing the collective power of these stakeholders, the Brazil Fazenda-U.S. Treasury Climate Partnership is poised to drive transformative change and unlock new opportunities for sustainable economic growth.