IFC has already committed a first tranche of 170 million euros to finance onshore wind projects in Poland. The loan to Iberdola is in line with the company’s Green Financing Framework and is structured with two ambitious corporate sustainability performance targets, in line with Iberdrola’s Climate Action Plan. The first of these targets is to reduce Iberdrola’s direct and indirect absolute greenhouse gas emissions by more than 60 percent by 2030 from a 2020 baseline. This includes scope 1, 2 and 3 emissions from company operations, customers and supply chains.
Iberdrola is among only a few energy companies globally to commit to such a comprehensive emissions target, with a trajectory validated by the Science Based Target initiatives (SBTi) to be consistent with limiting warming to 1.5⁰C.
The second target is to more than double Iberdrola’s renewable energy capacity by 2030 - also of great significance, given Iberdrola’s 41+ GW of installed renewable capacity by September 2023.
Iberdrola, a global leader in renewable energy and sustainable finance, is one of the world's largest utilities by market capitalisation, operating across all segments of the energy value chain. It operates in many regions where IFC has a presence, including Europe, Latin America, Asia, and Africa.
“This loan is a significant step in the global IFC-Iberdrola Energy Transition Partnership, which aims to support Iberdrola’s expansion and re-entry into emerging markets in need of decarbonising their energy matrix” said Alfonso García Mora, Vice President for Europe, Latin America, and the Caribbean at IFC. “We look forward to partnering with Iberdrola on projects that can accelerate a just and equitable transition to a low-carbon and sustainable energy future in developing and emerging markets.”
Also, as part of the partnership, Iberdrola and IFC are exploring collaborations on early-stage project development in emerging energy solutions, including offshore wind and green hydrogen.
“This loan will allow Iberdrola to continue contributing to the energy transition, decarbonisation and electrification of developing countries, which are still highly dependent on fossil fuels” added José Sainz Armada, Iberdrola's Director of Finance. “It also consolidates IFC as one of our major allies in the financing of renewable projects.”
The loan follows two green and sustainability-linked loans to Iberdrola subsidiaries, including a $155 million loan to Neoenergia Elektro in May 2023 and a $115 million loan to Neoenergia Coelba in July 2022. These IFC investments supported network expansion and digitalisation in Brazil.
As of December 2023, IFC has invested over $6.2 billion in sustainable finance in infrastructure, including $3 billion in sustainability-linked financing for infrastructure companies in emerging markets. In addition to financial support, IFC provides complementary client services such as project preparation support and climate advisory. These services assist in defining ambitious sustainability strategies, developing concrete decarbonisation action plans, assessing climate risks, and ensuring a just transition.
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