Monday 9 July 2018

New scheme aims to make Brazilian cities more energy efficient

A new initiative aimed at unlocking private financing for urban energy efficiency projects in Brazil has been launched.

Under the project, the World Bank will partner with Caixa Econômica Federal (CEF), the second largest state-owned bank in Latin America, as the financial intermediary of climate funds.

It said the new financial instrument will help reduce credit risk and create new markets in the areas of efficient street lighting and industrial energy efficiency.

The project is expected to support the nation's goal of improving energy efficiency in the electricity sector by 10% by 2030.

Martin Raiser, World Bank Director for Brazil said: “The FinBRAZEEC project offers one of the first genuine project financing structures in the Brazilian market.

“Its innovative financing model will help us unlock investment potential in the sret lighting and industrial energy efficiency sectors, which had previously been identified as particularly promising for market-based solutions.”