- A new financial instrument developed by the World Bank will allow Brazil to increase investment in urban infrastructure and make the country more energy efficient.
- The new project aims to attract private sector and climate funds in public lighting and industrial energy efficiency.
- ESMAP was instrumental in setting the stage for the energy efficiency scale up now happening in Brazil.
The Financial Instruments for Brazil Energy Efficient Cities – FinBRAZEEC will catalyze resources from the private sector and climate funds to create new markets in the areas of efficient street lighting and industrial energy efficiency. FinBRAZEEC will help Brazil increase investments in urban energy efficiency and meet the goal of improving energy efficiency in the electricity sector by 10% by 2030, set as part of its Nationally Determined Contribution under the Paris Agreement on climate change. It is expected to mobilize more than US$ 1.1 billion for urban energy efficiency investments in Brazil.
The World Bank’s Energy Sector Management Assistance Program (ESMAP) was instrumental in setting the stage for the energy efficiency scale up now happening in Brazil.
ESMAP’s engagement began with city energy diagnostics and studies in two cities to help identify viable business models for urban EE sectors, including street lighting and industry. Based on this intelligence, Brazil sought World Bank’s help to implement a country-wide plan for EE street lighting and design a scheme to unlock private financing. Together, these interventions enabled the FinBRAZEEC project.
ESMAP technical assistance also helped develop a $195 million funding proposal to the Green Climate Fund (GCF) – the largest GCF loan approved to date and the first GCF project in the country.