IFC helps boost renewable energy, climate-smart ag in Brazil

By International Finance Corp. | June 29, 2022

International Finance Corp., a member of the World Bank Group, is supporting a new project to strengthen the clean and renewable energy market in Brazil. The $50 million financing package to Usina Santa Adélia will expand the company's ethanol production and support the renewal of sugarcane plantations, utilizing innovative and climate-smart agricultural techniques to mitigate climate risks.
 
The financing package consists of $30 million from IFC's own-account and up to $20 million mobilized from Rabobank. IFC's loan will support Usina Santa Adélia's investment program, which includes the renewal of 24,100 hectares of existing sugarcane fields utilizing climate-smart agricultural techniques, including the use of the meiose system. The company also plans to use satellite pictures and drones to track weather information and impacts on sugarcane development to best adapt agricultural planning of cane. The program relies on the implementation of efficient pivot and drip irrigation systems, helping increase productivity and boost the sector's climate resilience.
 
As part of the project, IFC will also assist Usina Santa Adélia in the implementation of climate mitigation and adaptation strategies to improve the company's operational efficiency, reducing water consumption and supporting renewable energy generation from sugarcane bagasse and bioethanol production.
 
"IFC is well positioned to support Brazil in implementing its environmental protection goals and promoting investments in renewable energy and energy efficiency. We are supporting Usina Santa Adélia, a competitive player in a key sector of the Brazilian economy, to strengthen the country's diversification of the energy matrix," says Carlos Leiria Pinto, IFC's Country Manager in Brazil.
 
"Rabobank is very proud to be part of significant investments. The operation carried out in partnership with IFC for Usina Santa Adélia reinforces our role as an agribusiness company that seeks to offer customized solutions for customers", comments Fabiana Alves, Head of Rabobank Brazil Corporate Clients.
 
According to the Global Carbon Atlas, Brazil ranked twelfth in the world in greenhouse gases (GHG) emissions in 2020, with a 1.3 percent global share. In 2015, Brazil signed the Paris Agreement and committed to a 37 percent reduction in GHG emissions by 2025 and a 43 percent reduction by 2030. The country also committed to increasing the share of sustainable biofuels in the Brazilian energy mix to approximately 18 percent by 2030, expanding the consumption of biofuels and the supply of ethanol. This is IFC's first financing for Usina Santa Adélia, strengthening its partnerships in the sugar, ethanol and renewable energy sector and adding value to knowledge sharing.