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"Modelling the impact of the Ecological Transformation Plan in Brazil"


  • SOLICITATION NUMBER: 0002015227
  • INSTITUTION:  IBRD/Å·ÃÀÈÕb´óƬ
  • ASSIGNMENT LOCATION: Brazil
  • ISSUE DATE AND TIME: Apr 03,2025 05:09
  • CLOSING DATE AND TIME: Apr 29,2025 23:59

Brazil is a key global player in the fight against climate change; actively formulating policies that acknowledge its economic impacts while promoting a just transition to a socially inclusive; greener; and more sustainable economy. In this context; the Brazilian government is pioneering the implementation of an ambitious green transition strategy; the Ecological Transformation Plan (ETP). The ETP aims to develop a comprehensive set of industrial policies and financial instruments to accelerate the greening of the economy without compromising production and employment.Given the scale of investments required; the macroeconomic and sectoral impacts of the ETP must be rigorously assessed. To this end; the Brazilian Ministry of Finance (MoF); through OF?CIO SEI N? 3869/2024/MF; has requested support from the Coalition for Capacity on Climate Action (C3A); a World Bank supported program that provides capacity building; knowledge sharing; and analytical tools for climate-related policy analysis relevant to Ministries of Finance.To model the impacts that the ETP will have in the Brazilian economy; it is proposed to use macroeconomic and sectoral models such as the Financial Sector Mitigation and Adaptation Tool (FSMAT); Energy-Environment-Economy Macro-Econometric Model (E3ME) and Future Technology Transformations (FTT). To support their implementation; the Brazilian MoF has provided a list of policies to be implemented in the under the ETP in the coming years; including monetary estimates where available.The implementation of the E3ME model has been explicitly requested by the MoF; as currently it is one of the most advanced macroeconometric models available. With global coverage; a multisectoral structure; and direct integration between the economy; energy systems; and the environment; E3ME enables an assessment of sectoral impacts without losing sight of macroeconomic and environmental effects.The service provider will contribute to this analysis by implementing the E3ME model to the Brazilian economy and testing the impact that the ETP would have; focusing on the sectoral aspects of the plan. The provider should be legally authorized to use the E3ME model; and all property rights of the materials created will be transferred to the World Bank at no cost.

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