The International Finance Corporation (IFC) invested $20 million in Sol Agora, a fintech company that provides long-term financing for micro and mini-distributed solar power generation assets in Brazil. This investment aims to support Brazil’s efforts to address climate change and transition to a sustainable energy future. The investment will help diversify Brazil’s energy matrix, reduce carbon emissions, and increase resilience. Sol Agora’s digital platform purchases loans to Brazilian households and small and medium enterprises for the acquisition and installation of solar generation equipment.
The IFC’s investment in Sol Agora is aligned with its goal of expanding access to climate finance for solar systems. This investment will also contribute to strengthening Brazil’s capital markets. Brazil has pledged to cut emissions by 48% by 2025 and 53% by 2030, and aims to boost renewables to 45% of its energy mix by 2030. To meet these goals, Brazil needs to invest an estimated 4.3% of its GDP annually between 2022 and 2030. The IFC estimates that Brazil has a climate-related investment potential of $1.3 trillion for the period of 2016 to 2030.