Spanish utility Iberdrola has inked a deal with the International Finance Corporation (IFC), the private sector arm of the World Bank Group, to receive a EUR 300 million (USD 328.4 million) loan dedicated to advancing renewable projects in emerging and coal-dependent nations. The loan agreement is contingent on the successful attainment of two key environmental, social, and governance (ESG) objectives.
These ESG objectives include a commitment by Iberdrola to slash its greenhouse gas emissions across all three scopes by over 60% by 2030 compared to the 2020 baseline. Additionally, the utility aims to more than double its installed renewable energy capacity by 2030, which exceeded 41,000 megawatts at the close of the third quarter of 2023.
Iberdrola plans to implement the funded projects in countries heavily reliant on fossil fuels and coal, such as Morocco, Poland, and Vietnam. A portion of the committed funds, EUR 170 million, will be allocated to finance onshore wind projects in Poland. The collaboration between IFC and Iberdrola, established in May 2023, is designed to drive the energy transition in emerging markets.
Alfonso Garcia Mora, Vice President for Europe, Latin America, and the Caribbean at IFC, stated that the loan marks a significant milestone in the global IFC-Iberdrola Energy Transition Partnership. The partnership aims to facilitate Iberdrola's expansion and re-entry into emerging markets seeking to decarbonize their energy matrices, fostering a just and equitable transition to a low-carbon and sustainable energy future.
