IFC and ACCIONA Join Forces to Propel Sustainable Infrastructure in Latin America

By modernizing Peru’s energy infrastructure, the projects are expected to significantly lower greenhouse gas emissions and improve energy accessibility in underserved regions.

The International Finance Corporation (IFC), a member of the World Bank Group, has announced a groundbreaking partnership with ACCIONA, a global leader in sustainable infrastructure, to advance green energy and modern public transit systems across Latin America. This collaboration, centered on Peru and Brazil, underscores a commitment to fostering sustainable development, reducing carbon emissions, and enhancing living standards in emerging markets.

In Peru, the partnership focuses on three transformative power transmission projects:

• 220 kV Reque-Nueva Carhuaquero
• 220/60 kV Nueva Tumbes
• 220 kV Ica-Poroma

These initiatives aim to integrate renewable energy sources into the national grid, reduce the country’s reliance on fossil fuels, and meet growing energy demands. By modernizing Peru’s energy infrastructure, the projects are expected to significantly lower greenhouse gas emissions and improve energy accessibility in underserved regions.

Revolutionizing Public Transit in Brazil

In Brazil, the partnership supports the development of São Paulo’s Metro Line 6, one of the largest public-private partnership (PPP) infrastructure projects globally.

• This metro line will connect 600,000 daily passengers from low-income suburbs to São Paulo’s city center, reducing commute times from 1.5 hours to just 23 minutes each way.
• It will provide better access to essential services such as education, healthcare, and employment opportunities.

Innovative Green Financing

The partnership includes a $600 million green and sustainability-linked loan (SLL) to ACCIONA Financiación Filiales, with the first tranche of $380 million signed in December 2024. Key features include:

• Alignment with the EU taxonomy to incentivize sustainable investments.
• Local impact indicators focused on expanding essential services like solar energy, clean water, and photovoltaic systems.

The loan structure adheres to ACCIONA’s Sustainable Impact Financing Framework and its ‘Dual Impact’ philosophy, ensuring positive environmental and social outcomes.

Alignment with Sustainable Development Goals

The collaboration contributes to the United Nations Sustainable Development Goals (SDGs):

• SDG 6: Supporting clean water and sanitation.
• SDG 7: Ensuring affordable, reliable, and modern energy for all.
• SDG 13: Promoting climate action to mitigate global warming.

Advancing Green Hydrogen Projects

Building on this partnership, IFC has also signed an agreement with ACCIONA’s joint venture with Nordex, ACCIONA & Nordex Green Hydrogen, to evaluate the bankability of the Alto dos Ventos green hydrogen project in Brazil. This project reflects a broader commitment to green hydrogen as a critical component of the global energy transition.

Leadership Perspectives

Alfonso Garcia Mora, IFC Vice President for Europe, Latin America, and the Caribbean, emphasized the partnership's transformative potential: “Our collaboration with ACCIONA underscores IFC’s commitment to decarbonizing energy and improving essential infrastructure. Together, we aim to advance sustainable growth and resilience in Latin America.”

Jose Manuel Entrecanales, Chairman and CEO of ACCIONA, highlighted the local impact: “This agreement exemplifies the power of collaboration. Through this partnership, we are bringing essential services to communities and contributing to a more sustainable future.”

Broader Impact and Future Collaborations

The IFC-ACCIONA partnership reflects a shared vision for global sustainability, building on previous collaborations in Mexico, Egypt, and Croatia. By driving renewable energy adoption, modernizing public transit, and promoting green hydrogen projects, this alliance represents a blueprint for sustainable development in emerging markets.

With continued innovation and investment, IFC and ACCIONA aim to create resilient infrastructure that connects communities, fosters economic growth, and safeguards the planet for future generations.