SAO PAULO, April 20 (Reuters) - Germany will contribute 500 million euros ($588.30 million) to a climate fund managed by Brazil's state development bank BNDES, Brazil's president told a press
Brazil says Germany to contribute 700 million euros to green initiatives
Germany's Financial Support for Brazil's Climate and Mobility Projects
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.
Details of the Climate Fund Contribution
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.
Objectives of the Climate Fund
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.
Agreement on Sustainable Mobility
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.
Focus on Greener Transport Solutions
The second partnership aims to finance and implement sustainable transport solutions to support greener and more efficient mobility systems, the bank said.
Brazil-Germany Collaboration on Renewable Energy
Lula said Brazil was willing to discuss alternative energy sources with Germany and that he was "an unwavering advocate of biofuels".
Potential Benefits for Germany
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.
The Role of Biofuels in Emissions Reduction
Advantages of Biofuels
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's Leadership in Biodiesel Production
Brazil, one of the world’s leading biodiesel producers, showcased a new biofuel in Hanover, Germany, as part of Lula's visit.
Additional Information
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(Reporting by Lisandra Paraguassu in Brasilia and Isabel Teles in Sao Paulo; editing by Barbara Lewis and Aurora Ellis)
