Brazil
Image credit: Stock

The European Investment Bank has agreed to provide Brazil with a €150 million credit to boost the country’s portfolio of renewable energy.

The credit will be issued through EDP Renovaveis to support the development of wind and solar power generation plants.

The credit will expand EDPR’s clean energy portfolio to 1.8TWh a year by 2023.

The funding is expected to help Brazil to reduce its carbon emissions from power generation, accelerate the energy transition and provide consumers with affordable energy.

The solar and wind projects will help Brazil to reduce its fuel import costs, improve energy security and contribute to the creation of 1,900 jobs during the implementation phase.

The credit is in line with the Climate Action and Environmental Facility and the US Sustainable Development Goals, which are pushing the EIB to invest outside Europe to ensure access to affordable, reliable, sustainable and modern energy while fighting climate change.

EIB Vice-President Emma Navarro, responsible for EIB operations in Latin America and for the Bank’s climate action, said: “Climate change is one of the biggest threats to the future of our planet and we need to join forces to tackle it. Today, we are taking a very important step forward in our commitment to support sustainable and inclusive economic growth in Latin America. Thanks to this project, the EU Bank is boosting wind and solar power generation in Brazil and therefore contributing to the fight against climate change. Supporting clean and renewable energy, thus helping to reduce CO2 emissions, is a key priority for the EIB in Brazil and in the whole region.” 

EDPR CEO, João Manso Neto, pointed out that “this credit line will help us to continue with our establishment in Brazil, a country in the midst of a transition towards a more environmentally friendly energy mix. In addition to this, we feel especially motivated by the endorsement of an institution of the EIB’s weight, as it supports not only our business line but all our contribution to progress and development”.

In 2018, the European Investment Bank surpassed its climate financing target for the ninth year running, dedicating €16.2bn to promoting climate action, which represents 29% of its total business.

In Latin America, the EIB has become a major promoter of renewable energy having signed projects worth over €840 million in the region between 2013 and 2018.