Chapter 7: The New Development Bank's Role in the Low-Carbon Transition: An Analysis of Institutional Strategies and Projects Financed

The BRICS countries’ energy transition deserves attention not only for the domestic characteristics of these economies but also for their positioning on the current geopolitical context, marked by global challenges and conflicts. In this sense, it is essential to understand the role of the New Development Bank (NDB) in financing the transition. Since its foundation, the bank has been characterized by its focus on sustainable development. The first operations to each member carried out in 2016 were directed to clean energy sector. In addition, the institution strategy for 2017–2021 highlighted clean energy as one of the core areas for the NDB, and a new guideline for 2022–2026 shows a target of directing 40% of total approvals to projects that contribute to climate change mitigation and adaptation, including energy transition. Thus, the research aims to assess how the NDB contributes to the energy transition process in the BRICS countries toward a low-carbon economy, based on the projects financed and through institutional strategies analysis. From this, it is possible to assume that the NDB contributes to the BRICS transition process to a low-carbon economy, but with differences between countries. On the one hand, the NDB favors more the transition in the energy sector in China, South Africa, and Brazil; on the other hand, the institution collaborates more with the decarbonization process in India, China, and Russia. Despite this, there are still limitations and challenges that hinder the NDB from becoming one of the main sources of incentives for its member countries to reach the climate targets.