In the present era where the effects of anthropogenic climate change are becoming visible, and where countries are expected to contribute to emissions mitigation, the spotlight is often on developing countries, which are often considered to be engines of economic growth – growth that leads to improved socioeconomic conditions, including employment creation and reductions in inequalities and poverty. These countries have long faced a policy dilemma that pits environmental concerns on the one hand with development needs on the other. The concept of Sustainable Development therefore aims to give a direction to the developing world that takes into account environmental and social factors (among others). Using econometric evaluation methods, this thesis critically examines the impacts that (sustainable) development investment has had on socio-economic indicators in Brazil, especially on income inequality and on employment creation.