Financial Instruments for Brazil Energy Efficient Cities (GCF-FP065)

Countries
  • Brazil
Where the impacts of the investment may be experienced.
Financial Institutions
  • Green Climate Fund (GCF)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Bank Risk Rating
U
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Mar 1, 2018
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
Government of Brazil
The holder of the loan, grant, or other investment.
Sectors
  • Climate and Environment
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Grant, Loan
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 195.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Loan Amount (USD)
$ 186.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Grant Amount (USD)
$ 9.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Project Cost (USD)
$ 1,306.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please see updated project documentation for more information.
Primary Source

Original disclosure @ GCF website

Updated in EWS Jun 24, 2018


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Project Description

Brazil’s energy-related emissions have increased 130 percent from 1990-2012, against a Nationally Determined Contribution (NDC) of a 10 percent reduction by 2030. With extensive urbanization (over 85 percent of Brazil’s population lives in urban areas), previous work financed by the Energy Sector Management Assistance Program (ESMAP) and others1 ,led to the identification two sectors where transformative change could be made: municipal street lighting and energy efficiency (EE) in urban industrial areas. In order to overcome financing barriers and catalyze a significant shift in the trajectory of energy-related emissions, the Financial Instruments for Brazil Energy Efficient Cities (FinBRAZEEC) project, aims to unlock long term private financing for urban energy efficiency projects in Brazil by reducing the credit risk of LED street lighting (SL) and industrial efficiency projects (IEE) and enhancing their technical quality. The project will create an EE facility hosted at a local public bank, CAIXA Econômica Federal (CEF) and will support CEF in raising private financing for the efficient SL and off-balance sheet financing for IEE by incentivizing local Brazilian lenders to start lending on a “project risk” basis vs the currently dominant “corporate finance”.

Investment Description
  • Green Climate Fund (GCF)
Private Actors
Contact Information

For project details, contact: 

Silvia Martínez Romero, Senior Energy Specialist

smartinezromero@worldbank.org

+1-202-473-0065

I 5-506, 1818 H St. NW, Washington, DC 20433, USA 

ACCOUNTABILITY MECHANISM OF GREEN CLIMATE FUND

The Independent Redress Mechanism (IRM) is the independent complaint mechanism for a person or people who have been or believe they are likely to be adversely affected by a project or programme funded by the Green Climate Fund. If you submit a complaint to the IRM, it may seek to address the issues raised by facilitating a problem-solving dialogue or, if that is not possible, conducting an independent investigation into whether the GCF has complied with its environmental and social policies. The IRM is newly created and is still in the process of developing its procedures and website. More information about the IRM and how you can file a complaint is forthcoming. You can contact the IRM at irm@gcfund.org.