Brazil to invest US$1.3bn in 2024 to mitigate effects of extreme weather events

The Brazilian government is planning to invest 6.4bn reais (US$1.3bn) this year in projects to mitigate the effects of extreme weather events.

Of the total, 4.8bn reais are expected to go to drainage works and 1.6bn reais to slope containment.

"Measures to reduce the impacts of extreme weather events in Brazil still have a very reactive nature, coming after problems happen rather than being proactive. In fact, this is not an easy problem to solve, as it demands legislative changes, since we are talking about projects that involve the federal government, state governments and city halls," Frederico Araujo Turolla, an infrastructure specialist and partner at consultancy Pezco Economics, told BNamericas.

The announced investments from the federal government come as Brazilian cities, including the largest metropolitan regions in the country such as São Paulo and Rio de Janeiro, have increasingly suffered from extreme weather events, such as torrential rains and strong winds, causing floods and landslides, among other problems, and resulting in deaths and the destruction of homes and infrastructure.

Last weekend, 12 people died after torrential rains hit the metropolitan region of Rio de Janeiro, causing flooding and landslides.

"We are realizing that these [extreme] climate events are only increasing every year, and we need to prioritize. We no longer want to see scenes like these repeat themselves in our country," cities minister Jader Filho said in a statement.

The Brazilian government is planning to inject up to 11.7bn reais through 2026, the last year of Luiz Inácio Lula da Silva’s administration, including 8.9bn reais in drainage works and 2.8bn reais in slope containment.

The proceeds from the federal government will be directed to city and state governments for the projects.

Meanwhile, in the private sector, infrastructure concessionaires are also wary of extreme weather events. "The most recent concessions contracts in several areas that are being signed contain clauses that protect investors in the case of climate events," said Turolla.