Brazil: High-level meeting gathers renewable energy leaders to discuss green finance instruments for the sector

Jay OwenGreen Prosperity

Brazil: High-level meeting gathers renewable energy leaders to discuss green finance instruments for the sector

Proposals made by the companies will be presented to Brazil’s Green Finance Initiative (BGFI) for a discussion with investors at its next meeting, in September.

 

What’s it all about?

The Climate Bonds Initiative and CELA (Clean Energy Latin America) hosted last week a high-level meeting to discuss the latest challenges and opportunities faced by the wind and solar energy sectors in Brazil.

The event was held in São Paulo at the GTIS Partners headquarters, last Thursday (16).

Discussing green finance and ideas to attract more investors to the country were representatives from over 10 wind and solar power companies. During the two-hour meeting, they identified the main challenges preventing the expansion of the green finance market in Brazil and the role that could be played by the private and public sector to unlock this potential.

Some of this included the structuring of different aggregation instruments to be issued offshore, adjustments to guarantee requirements, as well as new forms of financial product distribution to allow for a greater investor diversification.

 

Who’s saying what?

 

Camila Ramos, Director, CELA

“The meeting today reinforced points that are already being discussed within the Brazil Green Finance Initiative and raised new ideas that will be brought to the group. We feel our ideas are aligned and this is very productive. The next step is to outline a plan of action for the implementation of these ideas, which will have a huge impact on the day to day of these companies that already have a robust project pipeline.”

 

Marcos Meireles, CEO, Rio Energy

“We have an extremely promising market for green bonds, but we have not yet learned how to attract the big investors. Our market is still in its infancy, it cannot handle so many projects. Unlike what happens abroad where there are lots of money and few projects, here we have plenty of projects and little money being allocated towards green. So we have to attract these investors, educate them about the Brazilian market, with its risks and benefits.”

 

Eduardo Klepacz, Managing Director – Head of Infrastructure Investments, GTIS Partners

“In order for the wind and solar sectors to further access capital markets, we need to adjust existing financial structures. For example, guarantees are a particular challenge and a new culture is needed in the market towards this and in terms of how it will be applicable to the market.”

 

Felipe Domingues, Director – Brazil Head of Finance, Accounting, Tax and FP&C, EDP Renováveis

“Renewable energy companies are already convinced of the importance of the green certification. Now it is necessary to educate the investor, and I believe that the Climate Bonds Initiative and the Brazil Green Finance Initiative will play an important role in this process.”

 

Thatyanne Gasparotto, Brazil Country Manager, Climate Bonds Initiative:

“Diversification of Brazil’s renewable energy offer has a huge potential to attract pools of green finance. An important element towards unlocking this finance is to identify current barriers as well as structuring sound financial products in which a wider array of investors, both domestic and international, can invest in. This is our focus for the upcoming meetings.”

 

The Last Word

We would like to thank all the companies that participate in this important meeting.

We took notes of all your ideas and suggestions. They will be passed to the members of the Brazil Green Finance Initiative and discussed in their next meeting, in September.