Sao Paulo, Brazil, October 5, 2010—IFC,
member of the World Bank Group, unveiled a study demonstrating ways to
boost renewable-energy and energy-efficiency activities in Brazil, potentially
producing nearly $770 million in annual cost savings.
The new market study finds that there
is a strong potential to improve the use of energy, especially in commercial
and public buildings, which utilize more than 80% of Brazil’s total electricity,
mostly for air conditioning, refrigeration, lighting, and motors. The energy
savings potential is approximately 5,500 GWh/year, resulting in annual
cost savings of close to $450 million per year. Seeing that potential materialize
would require $800 million in financing.
The study also identified significant
opportunities in the industrial sector, and in particular the food and
beverage, pulp and paper, chemical and ceramics subsectors, where energy-efficiency
measures could save approximately 6,000 GWh/year, or $320 million in cost
savings in these subsectors alone.
“Brazil is the second largest releaser
of greenhouse gas emissions in the region. We are identifying ways to reduce
these emissions through energy efficiency, renewable energy, and cleaner
production initiatives,” said IFC Senior Operations Officer Daniel Shepherd.
“However, the availability of commercial financing is limited; local banks
traditionally have not recognized investments in sustainable energy as
a business opportunity that can be provided systematically. This is where
IFC can play a critical role.”
The market study, conducted by Econoler,
an international consulting firm specializing in energy-efficiency projects,
also recognized that Brazil is a regional leader in biofuels, hydroelectric,
sugarcane cogeneration, and wind-energy projects. The study found that
there may be more opportunities related to municipal solid waste and alternative
biomass energy. That is especially pertinent in the Amazon area, where
numerous saw-mills generate waste that could be used to produce electricity.
Results of the study were presented
today in a workshop with representatives of Brazil’s main financial institutions,
which are interested in expanding into sustainable energy finance.
IFC has successfully developed sustainable
energy projects with financial institutions in emerging markets over the
last decade. IFC's overall strategy for abatement of greenhouse gas emissions
focuses on building the capacity of financial intermediaries to offer products
for renewable-energy and energy-efficiency projects.
IFC, a member of the World Bank Group,
is the largest global development institution focused on the private sector
in developing countries. We create opportunity for people to escape poverty
and improve their lives. We do so by providing financing to help businesses
employ more people and supply essential services, by mobilizing capital
from others, and by delivering advisory services to ensure sustainable
development. In a time of global economic uncertainty, our new investments
climbed to a record $18 billion in fiscal 2010. For more information, visit