Brazil’s development bank has announced a new funding policy which rules out investment in new coal and oil-fired power stations.

The country’s National Development Bank (BNDES) has also decided to cut economic support for new CCGT and big hydroelectric plants from 70% of total projects investment to 50%.

Instead, the bank plans to boost subsidies for clean technologies.

Solar projects will receive up to 80% of investment, up from 70% previously.

The bank will also finance up to 80% of the cost of energy efficiency projects.

Subsidies for wind, biomass and combined heat and power plants will continue at 70% of the value of the project.

The BNDES said the new measures will contribute to an increase in alternative energy infrastructures directing investments to projects with high social and environmental returns.