EIB & Banco Santander Promote Renewable Energy in Brazil with €300 Million Loan

The European Investment Bank (EIB) and Banco Santander (Brasil), one of the largest foreign banks in Brazil, have signed an agreement to foster the use of renewable energy in Brazil.

Ricardo Mourinho Félix, Vice-President of the EIB, and Carlos Rey de Vicente, Banco Santander’s Regional Head for South America, signed a €300 million loan in Brussels during the EU-CELAC Summit of Heads of State and Government and the EU-LAC Business Forum.

The EIB and Banco loan will support the installation of a series of small-scale self-consumption solar PV plants in Brazil, predominantly on rooftops. The plants will be installed on homes and the premises of small and medium businesses, with a total combined capacity to be around 600 MW.

Significance

The operation is also a landmark for EIB considering that almost 80 per cent of its total financing in Latin America in 2022 is linked to climate action and environmental sustainability.

As an integral initiative within the European Union’s Global Gateway investment strategy, this project aims to bolster infrastructure and enhance global and regional connectivity across various sectors including digital, climate, transport, health, energy, and education.

The Global Gateway project will also contribute toward Brazil’s aim of increasing the share of renewable energy sources in its annual electricity generation, and to achieve its ten-year national energy expansion plan. It is also expected to build new generation capacity as part of a self-consumption system that will reduce electrical losses and foster energy efficiency.

Furthermore, it contributes to Santander’s climate strategy, which is committed to becoming net zero by 2050. Santander also strongly supports sustainable initiatives: in 2022 alone, more than BRL 32 billion (€6 billion) in sustainable business was made possible by the organisation in Brazil.

Commissioner for International Partnerships at the European Commission, Jutta Urpilainen, said, “This project will have a significant positive impact for Brazilian families and small businesses. Through the EU-Latin America and the Caribbean Global Gateway Investment Agenda, we are committed to work together to promote fair green and digital investment, and also help to achieve the Sustainable Development Goals.”

“This partnership with the EIB will help us to continue moving towards a green economy that is prepared to face the challenges of the future. In a large and sunny country like Brazil, solar energy generation can play a fundamental role in our energy mix. With these resources, we will be able to support thousands of people and small companies that have access to solar energy, and generate clean energy and savings for families across the country,” said Carlos Rey de Vicente, Banco Santander’s Regional Head for South America.

EIB Global is the EIB Group’s specialised arm dedicated to increasing the impact of international partnerships and development finance.