CAF approves USD 80 million to improve climate resilience in Porto Alegre

The Board of Directors of CAF, Development Bank of Latin America and the Caribbean, approved a loan of up to USD 80 million for the Mayor's Office of Porto Alegre, capital of the state of Rio Grande do Sul, to address the impacts of the floods that occurred in April and May of this year, and to contribute to climate resilience by promoting sustainable urban development in vulnerable areas of the city. In this context, Porto Alegre faces significant challenges due to its geography and hydrology, which make it susceptible to natural disasters.

Classified as 100% green, the Social Innovation Program for the Territorial Transformation of Porto Alegre will directly benefit more than 100,000 people and, indirectly, the entire population, estimated at 1.3 million inhabitants. It will also contribute to the reconstruction of infrastructure damaged by the rains, a tragedy that affected 2.12 million people throughout the state of Rio Grande do Sul and left 183 dead. Works will also be carried out in at-risk areas already mapped by the mayor's office.

"This loan promotes sustainable urban transformation, especially in vulnerable areas of Porto Alegre. In addition, by prioritizing green investments, this initiative positions the city in line with global development and climate adaptation goals, a priority for CAF investments," said Sergio Diaz-Granados, executive president of the institution.

The Social Innovation Program for the Territorial Transformation of Porto Alegre includes urbanization interventions in densely populated neighborhoods marked by social and environmental vulnerability. Among the actions planned is the construction of Integrated Territorial Complexes, which will decentralize municipal services by offering spaces dedicated to education, sports, culture, leisure and innovation. These structures will also serve populations at social and climate risk, promoting resilience in the face of the challenges imposed by the extreme events that affected the city and the state in 2024.

The program's financing project also contemplates improvements in urban infrastructure, such as sanitation, mobility, accessibility, health and safety in at-risk areas. It also includes studies, projects, and disaster management tools to strengthen Porto Alegre's capacity to prevent and respond to future climate crises.