COP26: BNDES announces program for companies to reduce energy consumption

The National Bank for Economic and Social Development (BNDES) presented this Tuesday (9), at COP26, in Glasgow, Scotland, the Energy Efficiency Credit Guarantee Program (FGEnergia). The project will guarantee that micro and small business entrepreneurs can get credit to buy more efficient appliances and equipment. According to BNDES, the program will start operating in 2022.

The objective is to support investments that promote the reduction of electricity waste and, consequently, the emission of greenhouse gases, in addition to increasing business competitiveness for micro, small and medium-sized companies (MSMEs). FGEnergia will guarantee 80% of the value of loans obtained by small and medium entrepreneurs.

“Reducing energy consumption, through energy efficiency projects, is a sustainable way of meeting energy demand, with a very positive environmental impact. The Program is also relevant due to its innovative financial structure for granting guarantees, which will enable financing for small and medium-sized companies. Energy efficiency will translate into cost reduction and increased profitability for Brazilian companies”, explained the BNDES’ production and socio-environmental credit director, Bruno Aranha.

The project already has R$ 45 million in resources from the National Energy Conservation Program (Procel), raised via Eletrobrás. BNDES is negotiating new resources with other institutions to encourage the incentive. The new program will enter the integration phase with the BNDES system and may grant guarantees in the amount of up to R$ 3 million per company, with coverage terms from 12 to 84 months.

The BNDES estimates that most of the demand from entrepreneurs is for amounts below R$ 1 million and that a large part of the orders will be concentrated in projects aimed at improvements in areas such as refrigeration and lighting in businesses such as small businesses such as bakeries, medium-sized industries postage and supermarkets. The company that is going to apply must have sales of up to R$ 300 million per year, following the rules for framing each credit line, whether from the BNDES or from a partner institution. BNDES will carry out workshops, training focused on promoting energy efficiency.