• Operation with Neoenergia will enable the flow of renewable energy and strengthen the security of the energy supply in Paraná and Santa Catarina
• Certification for renewable energy projects seals alignment with good market practices for attracting green loans
• Construction of the lines should generate 2,691 direct jobs
Financing operation between the National Bank for Economic and Social Development (BNDES) and Neoenergia, signed on December 27, 2021, received the first certification of green loans for energy transmission projects from renewable sources in Brazil. The title refers to the project for the implementation of more than 1,100 kilometers of transmission lines between the states of Paraná and Santa Catarina, which aim to drain low carbon energy, as well as increase the security of energy supply in the respective states. Certification is aligned with Green Loan Principles (LPG) and good market practices for attracting green loans.
The opinion that certified the operation was prepared by NINT Group, a social organization of public interest that performs positive socio-environmental impact assessment through the development of financial solutions that incorporate socio-environmental issues in strategy, risk management and investment assessment.
"The Vale do Itajaí Project is an example of a partnership between BNDES and Neoenergia in the construction of a recognized sustainable and resilient future for the sector. The certification of the projects is an important step for this," said Alexandre Siciliano, Head of the Department of Electric Energy at BNDES.
The evaluation of the NINT Group included aspects such as management and use of resources, project selection process, and alignment with LPG. BNDES financing is associated with the provision of affordable and clean energy and mitigation to the effects of global climate change. The initiative also contributes to the increase in the transmission of renewable energy in the Southern region.
The report certifying the operation extolled, for example, the transparency of the information contained in neoenergia's annual report of financial and socio-environmental impact indicators. In addition, there were positive mentions of the climate risk assessment methodology, the operation being based on the company's Green Finance Framework and the existence of early maturity mechanisms in case of change in resource use.
" Neoenergia has an important role for the sustainable development of the Brazilian electricity sector generating value for society. Green financing certification reinforces our commitment to executing projects with transparency and responsible environmental practices towards a balanced transition to a low-carbon economy," says Leonardo Gadelha, Executive Director of Finance and Investor Relations at Neoenergia.
Among the company's 2030 targets is to place the intensity of emissions below 50 grams of CO2 per kWh generated, aiming to achieve carbon neutrality by 2050.
Green loans are financing aimed at sustainable activities, with the responsible use of natural resources. Access to this resource has as a principle the development of productive activities with concern for the environment and the well-being of people. A green loan can also be used to implement new, greener and sustainable production techniques compared to the previous process.
" With this current certification, BNDES maintains its pioneering role in the sustainable securities market. We had already been the first Brazilian bank to issue Green Bond in the international capital market and the first financial institution to issue green financial bills in the local market," said Daniel Barreto, Bndes Energy Area Superintendent.
BNDES will finance the implementation of 1,100 kilometers of transmission lines in Paraná and Santa Catarina. The proponent of the operation is the Special Purpose Society Neoenergia Vale do Itajaí Transmissão de Energia, controlled by Neoenergia S.A. Bndes support is in the amount of R$ 1.3 billion. It is estimated that the construction of these transmission lines generates 2,691 direct jobs.
It is a loan instrument to finance projects that bring social and environmental benefits. LPG is a set of voluntary guidelines, which provide a framework for clarifying under what circumstances a loan can be considered green, and which have been developed by representatives of major financial institutions working in the global syndicated lending market. There are four main components of green loans: (i) use of proceeds; (ii) process for project evaluation and selection; (iii) management of proceeds and (iv) reporting. Examples of LPG are initiatives aimed at mitigating climate change, conserving biodiversity and preserving natural resources, and preventing and controlling pollution.
Throughout its 70 years of history, BNDES has been the main government instrument to promote long-term investments in the Brazilian economy, besides being one of the main funders of micro, small and medium-sized companies in the country. The Bank also has an important countercyclical action in times of crisis, as one of the formulators of solutions for the resumption of economic growth. Currently, BNDES focuses on creating and maintaining jobs, improving Brazil's public services, such as education, health and sanitation, and supporting the country in the fair transition to a carbon-neutral economy. The Bank aims to transform the lives of generations, promoting sustainable development.
Publicly traded company with shares (NEOE3) traded on the São Paulo Stock Exchange. Part of the Spanish group Iberdrola, the company has been operating in Brazil since 1997, being currently one of the leaders in the country's electricity sector. Present in 18 states and the Federal District, its business is divided into the areas of generation, transmission, distribution and commercialization. Its distributors, Neoenergia Coelba (BA), Neoenergia Pernambuco (PE), Neoenergia Cosern (RN), Neoenergia Elektro (SP/MS) and Neoenergia Brasília (DF) serve more than 15 million customers, equivalent to a population of more than 37 million people.
Neoenergia has 4 GW of installed capacity in generation, being 88% renewable energy, and is implementing another 0.7 GW with the construction of new wind and solar farms. In transmission, there are 2,300 km of lines in operation and 4,300 km under construction. Through the Neoenergia Institute, it promotes sustainable development through social and environmental actions and thus contributes to improving the quality of life of the communities where the company operates, especially, the most vulnerable people, always aiming for sustainable development. As part of the commitment to expand women's participation in society, the company supports the Brazilian women's soccer teams and the Brasileirão Feminino Neoenergia championship.