The International Finance Corporation (IFC), a member of the World Bank Group, and Aperam, a major stainless, alloys, specialties and electrical steel manufacturer as well as metals recycler, have announced a financing package to support Aperam’s decarbonisation efforts through the production of sustainably-produced charcoal, a renewable fuel for steel manufacturing.
IFC’s €250M financing package includes up to €150M from IFC’s own account and up to €100M in mobilized funds from other lenders, such as ING. This funding will bolster the sustainable forest management program of Aperam BioEnergia, Aperam’s forestry and renewable energy subsidiary in Brazil.
The investment will support the acquisition of complementary eucalyptus plantations and the modernization of Aperam’s charcoal-producing kilns with cleaner and more efficient technology, further enhancing the sustainability of Aperam BioEnergia operations.
This investment marks IFC’s first initiative to support the sustainability of the metals sector in Brazil. It will create employment opportunities, reduce carbon emissions, and enhance sustainable forest management practices. Moreover, the application of IFC’s Environmental and Social Performance Standards will help Aperam mitigate risks and upgrade processes to ensure best practices in managing environmental impacts.
