The Spanish energy group Iberdrola has raised €300 million from the International Finance Corporation (IFC) to invest in renewable energy projects in fossil fuel dependent nations such as Morocco, Poland and Vietnam.
Part of a collaboration between the IFC and Iberdrola announced in May 2023 for €150 million, it is aimed at reducing polluting emissions and expanding the company's renewable energy capacity.
They have already agreed to invest €170 million to finance onshore wind energy projects in Poland.
The loan from the private sector investment arm of the World Bank Group to Iberdrola is linked to environmental, social and corporate governance (ESG) criteria, the latter stated.
It means the loan is subject to meeting 2 strategic ESG targets for the group. The 1st is to reduce its absolute direct and indirect GHG emissions by more than 60% by 2030 to the 2020 baseline, including Scopes 1, 2 and 3, from the company's operations, customers and supply chains.
The other condition is for Iberdrola to more than double its installed capacity by 2030 that exceeded 41 GW of clean energy at the end of Q3/2023. The Spanish company targets to expand its total installed power generation capacity to 100 GW by 2030 with 80% of it being renewable.
"This loan is a significant step in the global IFC-Iberdrola Energy Transition Partnership, which aims to support Iberdrola's expansion and re-entry into emerging markets that need to decarbonize their energy matrix," said IFC Vice President for Europe, Latin America and the Caribbean, Alfonso Garcia Mora.