Climate action
in Latin America: the EIB and EDPR support the development of renewable
energies in Brazil. The EIB grants EUR 150 million to EDPR Brazil to
finance wind power and solar energy plants. The agreement will help the
country meet the climate objectives established in COP21. Employment:
the project will create 1,900 jobs during the execution phase.
The
European Investment Bank (EIB) will provide EUR 150 million to EDPR
Brazil, the local subsidiary of EDP Renovaveis (EDPR), the world leader
in the renewable energy sector, to support the development of wind and
solar power plants in Brazil. This loan will help boost the company’s
business plan in Brazil, a country in which EDPR has been present during
the last decade and in which its project portfolio will allow it to
produce about 1.8 TWh per year of clean energy for the year 2023.
Thanks
to the support of the EIB, Brazil will be able to reduce its CO2
emissions and accelerate the transition to a cleaner energy mix, in
accordance with the environmental objectives set out in COP21.
In
addition, the construction of wind and solar power plants will
positively influence the country’s economy, reducing energy and fuel
import costs, improving its energy security and generating employment.
In particular, the global investments supported by the EIB will
contribute to creating 1,900 jobs during the execution phase.
This
operation, eligible under the Climate Action and Environmental Facility
(CAEF), is another example of the EIB’s efforts to finance projects
that favor mitigation and adaptation to climate change. outside the
European Union, thus contributing to EU policies on renewable energy and
the environment. This project will promote the production of clean and
renewable energy in accordance with the UN Sustainable Development Goals
(SDGs), which guarantee access to affordable, reliable, sustainable and
modern energy, while combating climate change.
At the signing
ceremony held in Madrid, the EIB Vice President, Emma Navarro,
responsible for EIB operations in Latin America and the Bank’s climate
action, said: «Climate change is one of the greatest threats to the
future of our planet and we must join forces to face it. Today we take a
very important step in our commitment to support sustainable and
inclusive economic growth in Latin America. Thanks to this project, the
EU bank will boost the generation of wind and solar energy in Brazil,
thus contributing to the fight against climate change. Supporting clean
and renewable energies to reduce CO2 emissions is a fundamental priority
for the EIB in Brazil and throughout the region ».
For his part,
João Manso Neto, CEO of EDPR, said that “this line of credit will help
us strengthen our operations in Brazil, a country in full transition
towards an energy mix more respectful of the environment. In addition,
we are especially motivated by the support of a leading institution such
as the EIB, since it supports not only our line of business, but all
our contribution to progress and development ».
Through this
framework loan, the Bank will grant financing worth 150 million euros to
EDPR Brazil, which will subsequently allocate the funds to a series of
photovoltaic wind and solar plants in Brazil. Likewise, EDPR may request
long-term preferential debt from other financial institutions to obtain
all the necessary financing for the project.
The EIB in Latin America
The
European Union is the main partner for the development of the Latin
American region, its first investor and its second largest trading
partner. As an EU bank, the EIB supports the EU’s relations with Latin
America by financing projects that contribute to achieving the EU’s
foreign policy objectives: the development of economic, environmental
and social infrastructure, the development of the private sector , as
well as climate change mitigation and adaptation to its effects.
The
EIB began operations in Latin America in 1993. Since then, the EU bank
has financed almost 120 projects for a total amount of EUR 8,400 million
in 14 countries.
In 2018, the EU bank intensified its
contribution to sustainable development and climate action in Latin
America, facilitating EUR 640 million to carry out 15 financing
operations: a record of operations structured by the EIB in a year in
which the region.
