Brazil, China in Talks to Establish Green Investment Fund

Brazil and China are in talks to create a fund for financing the development of green industry and renewable energy in both countries, according to two senior Brazilian officials, as reported by Reuters on March 24. Brazilian President Luiz Inacio Lula da Silva might announce the proposal during his visit to Beijing due on March 25, which has been postponed due to his mild pneumonia. According to Lula’s top foreign policy advisor Celso Amorim, the two sides plan to establish a bilateral fund for investment in this area, with an agreement on renewable energy to be inked during Lula’s visit to China. Brazilian Environment Minister Marina Silva (Silva) disclosed that the proposed fund would be used to recover forests and promote a more sustainable economy, including the production of green hydrogen.

Silva expects China to have an increasingly robust agenda on climate change, biodiversity, and the protection of forests, considering its status as the world’s largest greenhouse gas (GHG) emitter. The planned green fund could also facilitate Lula’s environmental agenda, including combating deforestation, subsidizing sustainable farming, and reforming Brazil’s tax code to foster a green economy. During his February visit to the White House, Lula already secured President Biden’s commitment to climate policy and forest protection. Additionally, Brazil will leverage the relaunched Amazon Fund to fight deforestation and strengthen environmental protection in Amazon. Spain, France, and the UK are also considering joining the fund established by Norway and Germany. However, Silva noted that China will not join the Amazon Fund.

Sources:
https://www.reuters.com/business/environment/china-brazil-look-set-up-green-investment-fund-say-lula-aides-2023-03-24/
https://www.reuters.com/world/americas/brazils-lula-fine-after-pneumonia-diagnosis-will-travel-china-sunday-2023-03-24/
https://www.scientificamerican.com/article/brazils-new-president-vows-to-save-amazon-forests/
https://www.euronews.com/2023/01/03/brazil-britain-environment