The Brazilian Ministry of Transport launched the Sustainability Program for Road and Rail Infrastructure (PSI) with the aim of improving concession projects and fostering decarbonization.
The plan has the potential to generate up to R$21.5 billion in new investments and seeks to promote climate resilience practices and regulatory innovation in the country’s road and rail concessions.
“It is essential to allocate between 1% and 2.5% of project revenues to resilient infrastructure focused on the climate and energy transition. This allows us to access infrastructure funds. This agenda is strategic for attracting interested investors to Brazil and for projects to incorporate this culture of responsibility at all levels of government,” stated the ministry’s executive secretary, George Santoro.
The PSI was designed based on two Executive Decrees that link the issuance of infrastructure bonds to compliance with ESG parameters. The model allows concessionaires to allocate up to 2% of their new revenues to sustainable investments, with the possibility of a prior revenue rebalancing to ensure the immediate start of projects.
Implementation will be facilitated in a regulatory testing environment, with a minimum duration of two years, which will allow for testing and refining regulatory instruments in a controlled setting. The program functions as a regulatory pilot project, offering legal security and predictability to participating concessionaires.
“We are facing a sector in full expansion, fundamental for Brazil’s growth. This is a tool to overcome the fallacy that development and environmental conservation cannot go hand in hand. They must, and can, advance together,” emphasized Felipe Queiroz, director of the National Land Transport Agency (ANTT).
During the PSI period, concessionaires must present investment plans that comply with the 470 technical requirements defined by committees composed of representatives from the federal government and the private sector. At the end, the results will be evaluated and adjusted according to the model’s improvement needs.
Furthermore, the program incorporates the Green Logistics Corridors project, which connects roads, railways, and ports in integrated sustainability plans. The initiative seeks to reduce emissions and increase the climate resilience of transport infrastructure through coordinated measures between the different modes of transport.
