Brazil: EIB lends €300 million to Banco Santander Brasil for small-scale solar energy investments

The European Investment Bank (EIB), the world’s largest multilateral public bank, and Banco Santander (Brasil), the largest foreign bank 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 on 17 July 2023 during the EU-CELAC Summit of Heads of State and Government and the EU-LAC Business Forum.

The project is part of the European Union’s Global Gateway investment strategy supporting infrastructure and improving global and regional connectivity in the digital, climate, transport, health, energy and education sectors.

The loan will support the installation of a series of small-scale self-consumption solar photovoltaic plants in Brazil, predominantly on rooftops, for a total combined capacity of around 600 MWp. The plants will be installed on homes and on the premises of small and medium businesses.

This Global Gateway project will contribute to climate action to mitigate the effects of climate change. The project will also help Brazil reach its targets for increasing the share of renewable energy sources in its annual electricity generation, and to achieve its ten-year national energy expansion plan. As a low-carbon power generation project, it will reduce carbon emissions and air pollution. It will also build new generation capacity as part of a self-consumption system that will reduce electrical losses and foster energy efficiency.

 

Infografía – Relaciones UE-CELAC: hechos y cifras

The operation signed today strengthens the EIB’s role as a global climate bank and will mean that almost 80% of its total financing in Latin America in 2022 is linked to climate action and environmental sustainability. 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.

Background information

EIB Global is the EIB Group’s specialised arm dedicated to increasing the impact of international partnerships and development finance.  EIB Global is designed to foster strong, focused partnership within Team Europe, alongside fellow development finance institutions, and civil society. EIB Global brings the Group closer to local people, companies and institutions through our offices across the world.

More information: European Commission