In February 2025, the International Finance Corporation (IFC) approved a $250 million Sustainability Linked Loan to Aperam, a global stainless-steel producer headquartered in Luxembourg. 

Aperam finances the expansion of Aperam BioEnergia, its Brazilian subsidiary, which produces and supplies charcoal in Brazil to the company’s blast furnaces for iron production.

According to IFC’s website, prior to the project, BioEnergia owned about 124,000 hectares in Minas Gerais, of which 66% are Forest Stewardship Council (FSC) certified eucalyptus plantations, while the remainder is covered by native vegetation and infrastructure. 

BioEnergia currently produces 427,200 tons of charcoal annually, with plans to expand to 539,000 tons/year by 2033. In 2023, the company sourced 30,000 m3 of wood from third parties for charcoal production. 

The funds of the loan will be used for: 

• the acquisition of 42,600 ha of land (including two properties: Jogil, approximately 27,700 ha; and SADA, approximately 1,900 ha), and around 13,000 hectares yet to be acquired; 
• the expansion of charcoal production capacity;
• improvements in kiln efficiency and gas burner enhancements; 
• the establishment of a bio-oil business line utilizing by-products from charcoal production; and
• the expansion of seedling nursery capacity to meet the increasing demand for superior clonal seedlings from other forestry companies.

According to project documents, approximately one-third of the 29,600 ha of land already acquired consists of established plantations. The remainder includes Legal Reserves (LR), Permanent Protected Areas (APP), and 5,000 ha of inactive land under natural regeneration. The company did not define the location of the additional 13,000 ha to be acquired at the time of appraisal.

IFC classifies the project as Environmental Category A, as it is expected to have significant adverse environmental and/or social risks and impacts. The loan was approved on March 14, 2025.