EIB provides €100m to boost climate action investments in Minas Gerais

The European Investment Bank (EIB) will provide €100 million to Banco de Desenvolvimento de Minas Gerais to support climate action projects in the Brazilian state. 

The deal means private companies and also municipalities will be able to benefit from the advantageous financing conditions of the EU bank, both in terms of long tenors and interest rates, to implement projects promoting renewable energy generation and energy efficiency technologies. 

EIB funds will be allocated to renewable energy projects, such as small-scale solar photovoltaic plants and run-of-the-river hydropower plants, thereby contributing to reducing CO₂ emissions in the country. These investments will increase the country’s renewable and clean energy production capacity while securing energy supply.

Part of the EIB financing will also be dedicated to supporting energy efficiency projects, especially in public buildings, street lighting, and industrial facilities. Small businesses wishing to improve their environmental footprint are also eligible to receive EIB funds.

The EU bank is providing this finance, which will cover up to 75% of the final project investment cost, in the framework of the 2014-2020 lending mandate for Latin America. This agreement is therefore covered by the EU guarantee.