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IFC has invested $20 million (approximately BRL 115 million) in Sol Agora, a Brazilian fintech company that provides long-term financing for small-scale solar power systems. These systems are primarily used by households across Brazil to generate renewable energy. This funding aims to support Brazil’s climate goals by promoting clean energy solutions that reduce carbon emissions, enhance energy resilience, and contribute to a sustainable, low-carbon economy. By enabling electricity generation at the point of use, the investment helps minimize energy losses during transmission and distribution, leading to more efficient energy usage and cost savings for Brazilian families.
IFC has acquired senior quotas in Sol Agora’s second FIDC, the IS Sol Agora Green II ESG FDIC, which secured around BRL 900 million in commitments and has been fully disbursed. Since launching its first FIDC in late 2022, Sol Agora has raised over BRL 1.4 billion through FIDCs, financing solar equipment for more than 43,000 households and small businesses across Brazil. These FIDCs purchase loans from Sol Agora’s digital platform, enabling customers to acquire and install solar generation systems.
This investment aligns with IFC’s mission to promote clean energy solutions and innovative technologies in emerging markets. By supporting Sol Agora’s FIDCs, IFC aims to expand climate financing for solar systems, making them more affordable and accessible to households and small businesses. Additionally, IFC’s backing of solar asset-backed securities—a relatively new financial instrument—helps strengthen Brazil’s capital markets and foster sustainable growth in the renewable energy sector.
Manuel Reyes-Retana, IFC Regional Director for South America, said in a statement, “We are excited to partner with Sol Agora to expand financing for solar solutions in Brazil. This initiative contributes to Brazil’s efforts towards sustainable economic growth and enhanced climate resilience, supporting the country in its quest to become a global climate leader. This investment aligns perfectly with IFC’s overarching strategy for Brazil over the next five years, which focuses on building a more productive, inclusive, and greener economy.”
Antonio Nuno Verça, CEO of Sol Agora, mentioned, “Credit is a cornerstone of fostering the distributed generation market globally, and Brazil is no exception. At Sol Agora, we have assembled a team with a proven track record in Brazilian credit and capital markets, supported by best-in-class technology and governance practices. Partnering with IFC represents a transformative milestone that reinforces our progress while enhancing our capital structure and fundraising capabilities. With IFC’s unparalleled expertise and global perspective, we are well-positioned to scale our impact and navigate the opportunities ahead more effectively.”
Brazil, responsible for approximately 40% of greenhouse gas emissions in Latin America and the Caribbean, has committed to significant climate action. The country aims to reduce emissions by 48% by 2025 and 53% by 2030 (compared to 2005 levels) and achieve net-zero emissions by 2050. As part of this effort, Brazil plans to increase the share of renewable energy (excluding hydro) in its energy mix from 22% in 2022 to 45% by 2030.
To reach carbon neutrality by 2050, Brazil requires annual investments equal to about 4.3% of its GDP from 2022 to 2030, with even greater funding needed in the years leading up to 2050. IFC estimates Brazil’s climate-related investment potential at $1.3 trillion for 2016–2030. Expanding access to climate finance will be essential for funding these transformative investments and supporting Brazil’s sustainable energy transition. |
