Spanish Lender Launches Renewable Energy Investment Platform

Shirin Aguiar Reporter 29 March 2022

Spanish Lender Launches Renewable Energy Investment Platform

The latest developments in the ESG space.

Santander has launched a new renewable energy investment platform in Spain dedicated to renewable energy projects under development and construction.

The Santander Green Investment is part of the initiative led by the bank’s corporate and investment banking division which has already seen Santander invest in nine solar and wind projects in the country, with a combined capacity of 500MW.

The new platform will help expedite renewable energy project development and investment, the bank said. It mobilised €65.7 billion ($72.3 billion) towards this goal between 2019 and 2021.

At 2021 year-end, Santander was the highest-ranked bank in renewable energy project finance. To date, it has also issued three green bonds worth €3 billion.

The Santander Green Investment platform has a self-governance model, with a special committee approving investments, giving the platform flexibility over decision-making. Its investment framework can grant green projects the bank guarantees which they require and partner with developers with proven experience in renewable energy ventures.

“The launch of Santander Green Investment is a demonstration of our business prowess and industry knowledge. The initiative will help consolidate Banco Santander’s leadership in renewable energy financing and is further evidence of our commitment to the transition to a low-carbon economy,” Ignacio Dominguez-Adame, head of Santander Corporate & Investment Banking (CIB) for Continental Europe, said.

The banking giant also announced that it is aiming to reach net zero emissions across the group by 2050 in support of Paris Agreement objectives. To achieve this target and aid the transition to a low-carbon economy, it will align its power generation portfolio with the Paris Agreement by 2030 and stop providing financial services to electricity suppliers if over 10 per cent of their revenue depends on thermal coal.

Santander will also eliminate its worldwide exposure to coal mining by 2030, the lender said in a statement.

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