BRASILIA, May 31 (Reuters) - Former Brazilian Economy Minister Paulo Guedes is preparing to launch a "green" investment fund along with prominent bankers and other members of former President Jair Bolsonaro's government, two people familiar with the matter told Reuters.
The fund is expected to launch in July, the sources said, aiming to attract domestic and international investments in Brazil's energy transition, natural resource preservation and industries tied to renewable energy sources.
The new government of President Luiz Inacio Lula da Silva has prioritized green economic development and stewardship of the Amazon rainforest after Bolsonaro faced global criticism for overseeing a surge in deforestation and illegal mining.
Before Guedes ran the Economy Ministry under Bolsonaro, his first public-sector job, he co-founded an investment bank that later grew into Banco BTG Pactual SA and designed private equity funds focused on the education and health sectors.
Brazil, which runs overwhelmingly on hydroelectric power, has been a magnet in recent years for investment in wind and solar power generation, along with growing interest in preservation and reforestation to generate carbon credits.
Former Environment Minister Joaquim Leite, Gustavo Montezano, former head of state development bank BNDES, and ex-BNDES director Fabio Abrahao – all of whom served with Guedes under Bolsonaro – are also expected to work on the fund.
Roberto Azevedo, the former director-general of the World Trade Organization who retires in June as Chief Corporate Affairs Officer at PepsiCo, is also joining the team, along with Rodrigo Xavier, who ran Bank of America and UBS in Brazil.
When questioned by Reuters, none of them responded to the request for comments.
The size and operational details of the fund are still subject to discussion, sources said. (Reporting by Marcela Ayres Editing by Brad Haynes and Alistair Bell)
