BRASILIA, April 20 (Reuters) – Germany is going to contribute around 700 million euros ($824.74 million) to projects related to climate change and sustainable mobility in Brazil, Brazil’s state development bank BNDES said on Monday.
President Luiz Inacio Lula da Silva, who will conclude a two-day visit to Germany on Tuesday, had first announced a tranche of 500 million euros from Germany to a climate fund managed by BNDES.
The fund aims to support studies and finance projects focused on mitigating climate change, he said in a press conference with his German counterpart earlier in the day.
The two countries also signed a second declaration of intent providing for another 200 million euro investment in mobility, according to the statement released by BNDES later.
The second partnership aims to finance and implement sustainable transport solutions to support greener and more efficient mobility systems, the bank said.
Lula said Brazil was willing to discuss alternative energy sources with Germany and that he was “an unwavering advocate of biofuels”.
The Brazilian president added that Germany could benefit from Brazil’s renewable‑energy expertise and that officials from both countries would work to implement the decisions taken on Monday, without giving further details.
Biofuels can reduce greenhouse‑gas emissions while making use of existing fuel infrastructure. The blend of biodiesel with conventional diesel in the fuel sold in gas stations can also help to lower costs, particularly by reducing dependence on fuel imports.
Brazil, one of the world’s leading biodiesel producers, showcased a new biofuel in Hanover, Germany, as part of Lula’s visit.
($1 = 0.8499 euros)
(Reporting by Lisandra Paraguassu in Brasilia and Isabel Teles in Sao Paulo; editing by Barbara Lewis and Aurora Ellis)