By Alcilene Farias (CFC-GS/UFPA)
Tracking Climate Financing is a series of posts about projects that have received climate financing in Brazil at least once. The goal is to inform readers about the nature of each project, who finances them, how they are progressing, among other things. In light of this, this text addresses the Solar Development in Brazil project, a climate finance initiative aimed at expanding solar energy in the country through a debt instrument, in which the European Investment Bank (EIB) grants funds to Banco Santander Brasil, responsible for channeling the financing to the final beneficiaries.
What is Solar Development in Brazil and how does the financing work?
The Solar Development in Brazil project is a climate finance initiative structured by the European Investment Bank (EIB) to support the expansion of distributed photovoltaic solar energy in Brazil. It is a €300 million framework loan granted to Banco Santander (Brasil) S.A., which acts as a financial intermediary, receiving funds from the EIB and passing them on them as credit to households and small and medium-sized enterprises (SMEs) interested in installing solar photovoltaic systems for self-consumption, predominantly on the roofs of homes and commercial establishments, with an estimated combined capacity of around 600 MWp, according to an official statement from the EIB in partnership with Santander Brasil (Banco Santander Brasil, 2023).
In other words, the role of the institutions is clearly defined: the EIB acts as the provider of financing and is responsible for establishing the terms of the loan and its compliance with climate action policies and environmental criteria, while Santander acts as a financial intermediary, making credit available to its customers who invest in solar energy systems (European Investment Bank, 2023).
As for the progress of the project, information published by the EIB indicates that the operation has already passed the analysis phase and entered the implementation phase after the signing of the financing agreement between the two institutions, officially formalized on July 17, 2023, when the EIB and Santander signed the loan agreement in Brussels, marking the start of the operation from a legal and financial standpoint (European Investment Bank, 2023). Although there is not yet a detailed public report presenting concrete figures on implementation, such as the number of solar systems already financed or the energy actually installed, it is possible to describe what has already been announced and what is currently underway.
Implementation involves the gradual release of funds by the EIB to Santander, according to metrics and criteria defined in the agreement, allowing Santander to grant credit to households and small and medium-sized enterprises for the installation of solar photovoltaic systems on residential roofs and commercial facilities (European Investment Bank, 2023). At the same time, installation and financing contracts with end customers are expected to begin or expand as funds are transferred and equipment begins to be purchased and installed.
Similarly, there is currently no detailed public information on the progress of the project, such as how much money has already been transferred by the EIB to Santander, how much financing has already been granted, how much solar energy has already been installed with these funds, or what the results have been in terms of emissions reduction. This information is usually disclosed later, through annual sustainability or accountability reports from Santander or the EIB itself, when projects move into more mature stages of implementation.
Limits and challenges of climate finance
Although the project represents an important step forward in the expansion of solar energy and contributes to the country’s energy transition, its financing structure raises important questions about who bears the costs of this transformation. Unlike mechanisms based on donations or non-reimbursable resources, the project is operationalized through loans, which means that families and small and medium-sized enterprises may take on new financial obligations to access clean energy.
Furthermore, it is essential to consider the international context in which this financing occurs. The EIB is an institution based in the European Union, a region that is historically more industrialized and responsible for a significant portion of cumulative greenhouse gas emissions. Figure 1 shows historical cumulative CO₂ emissions (Ritchie; Rosado, 2025). The United States appears as the largest individual historical emitter, followed by the European Union, which also accounts for a significant share of emissions over time.
Chart 1 – Cumulative CO₂ emissions: comparison between selected countries
Source: Our World in Data (2025).
Brazil, on the other hand, is part of the Global South and has contributed proportionally much less to historical pollution. In this sense, the logic of financing climate action through debt, in which countries and institutions from advanced economies offer credit at interest, can be seen as problematic from the perspective of climate justice, as it transfers a significant part of the financial burden of mitigation and/or adaptation to countries less responsible for the crisis.
Thus, although initiatives such as Solar Development in Brazil are essential to expand access to renewable energy, they also highlight the limits of the current climate finance architecture, often marked by the centrality of credit and inequalities between rich and poor countries. These aspects reinforce the importance of discussing not only the volume of resources mobilized, but also their conditions, distribution, and social impacts, especially in developing economies.
REFERENCES
BANCO SANTANDER BRASIL. Banco Europeu de Investimentos concede €300 milhões ao Santander Brasil para investimentos em geração de energia solar em pequena escala. 2023. Available at: https://santanderimprensa.com.br/banco-europeu-de-investimentos-concede-e-300-milhoes-ao-santander-brasil-para-investimentos-em-geracao-de-energia-solar-em-pequena-escala/?. Acessed in: 29 jan. 2026.
EUROPEAN INVESTMENT BANK. Brazil: EIB lends €300 million to Banco Santander Brasil for small-scale solar energy investments. Available at: https://www.eib.org/en/press/all/2023-277-brazil-eib-lends-eur300-million-to-banco-santander-brasil-for-small-scale-solar-energy-investments?. Acessed in: 29 jan. 2026.
EUROPEAN INVESTMENT BANK. Solar development in Brazil. Available at: https://www.eib.org/en/projects/all/20220157?. Acessed in: 29 jan.2026.
EUROPEAN INVESTMENT BANK. Environmental and Social Data Sheet – Solar Development in Brazil. Luxemburgo, 2022. Available at: https://www.eib.org/attachments/registers/158350940.pdf?. Acessed in: 29 jan. 2026.
RITCHIE, Hannah; ROSADO, Pablo. CO₂and Greenhouse Gas Emissions. Our World in Data, 2025. Available at:https://ourworldindata.org/profile/co2/brazil?. Acessed in: 31 jan. 2026.
