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Financing the energy transition and renewable energy development with Banco do Brasil
Project
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Project start date
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Status
Completed
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Project end date
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Project duration
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2 years
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AFD financing amount
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100 300 000 €
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Country and region
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Type of financing
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Beneficiaries
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Banco do Brasil
Banco do Brasil is contributing to the diversification of Brazil’s energy mix and the implementation of its climate commitments by strengthening its financing offer for solar equipment aimed at small businesses and individuals across the country.
Contexte
As part of its Nationally Determined Contribution (NDC), Brazil has committed to achieving net-zero emissions by 2050 and halving its greenhouse gas (GHG) emissions by 2030. The country benefits from a largely decarbonized electricity matrix thanks to its hydroelectric plants, but remains highly vulnerable to the effects of climate change and the risk of water stress.
In this context, Brazil has set a target of ensuring that at least 23% of electricity production comes from renewable sources (excluding hydro) by 2030, leveraging strong potential in solar, wind, and biomass energy.
Description
As the second-largest financial institution in Latin America by assets, Banco do Brasil plays a leading role in the national financial system and in Brazil’s socio-economic development. Under its "Agenda 30" strategy, the bank supports the financing of public policies aligned with sustainable development. The project aims to strengthen the financing of Brazil’s energy transition and support the development of renewable energy, by helping Banco do Brasil expand its green finance offering and reinforce its internal tools for managing environmental, social, and climate-related risks. To achieve this, AFD has provided a first credit line of €100 million, along with a €300,000 grant. The credit funds are earmarked for financing small-scale solar equipment for individuals and small and medium-sized enterprises (SMEs) across Brazil.
The grant finances technical assistance to support capacity-building efforts within the bank.
Impacts
By supporting Banco do Brasil in financing small-scale renewable energy, AFD and the bank aim to diversify Brazil’s energy matrix and promote sustainable economic practices in vulnerable regions, such as the Northeast and the Amazon.This strategic partnership has allowed Banco do Brasil to strengthen its commitment to climate action and explore new avenues for cooperation.
Key impacts of this operation include:
- Investment in new renewable energy generation capacity exceeding €100 million ;
- Installation of over 3,700 decentralized renewable energy generation units ;
- Annual production of approximately 64 GWh of renewable energy ;
- Mitigation of 28,000 tons of CO₂ equivalent per year ;
- Creation or maintenance of over 1,500 local jobs in renewable energy-related sectors.
On the same region
On the same topic
On the same financial tool
