The European Investment Bank (EIB), the world’s largest multilateral public bank and Banco Santander Brazil, the largest foreign bank in Brazil, have inked a deal to promote the use of renewable energy in the South American nation.
Ricardo Mourinho Félix, Vice President of the EIB and Carlos Rey de Vicente, Regional Head of South America for Banco Santander, signed a €300 million loan agreement in Brussels, during the EU-CELAC Summit of Heads of State and Government and the EU-ALC Business Forum.
This project is part of the European Union’s Global Gateway investment strategy, which supports global and regional infrastructure and enhances connectivity in the digital, climate and transportation sectors, as well as in healthcare, energy and education.
The loan will support the installation of a series of small-scale photovoltaic solar plants in Brazil, primarily on rooftops, with a combined total capacity of approximately 600 MWp. These plants will be set up in residential areas and small to medium-sized business premises.
This Global Gateway project will contribute to the fight against climate change. It will also assist Brazil in achieving its goals of increasing the share of renewable energy sources in its annual electricity generation and meeting its 10-year national energy expansion plan. As a low-carbon electricity generation project, it will reduce carbon emissions and air pollution. Furthermore, it will establish generative capacity as part of a self-consumption system that will reduce electrical losses and promote energy efficiency.
The deal signed reinforces the European Investment Bank’s (EIB) role as a global climate bank. Moreover, it contributes to Santander’s climate strategy, as the bank has committed to being net-zero by 2050. Santander also strongly supports sustainable initiatives: in 2022 alone, the bank allocated more than 32,000 million reais (6,000 million euros) to sustainable businesses in Brazil.
“I am pleased to announce this project in partnership with Banco Santander in Brazil, which will enable private sector investments in renewable energy, reduce carbon emissions and air pollution and support additional renewable generation capacity in Brazil. This operation under BEI Global, the EIB’s arm created in 2022 for activities outside the European Union, is based on our global climate commitment and our support for the fight against climate change in Brazil over the past three decades,” said Ricardo Mourinho Félix, Vice President of the EIB.
Jutta Urpilainen, Commissioner for International Partnerships at the European Commission, stated: “This project will have a significant positive impact on Brazilian families and small businesses. Through the EU-Latin America and the Caribbean Global Investment Agenda, we are committed to working together to promote fair green and digital investment and to help achieve the Sustainable Development Goals.”