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 conference with his German counterpart on Monday.
The fund aims to support studies and finance projects focused on mitigating climate change.
President Luiz Inacio Lula da Silva, who will conclude a two-day visit to Germany on Tuesday, said Brazil was willing to discuss alternative energy sources with Germany and that he was “an unwavering advocate of biofuels”.
Lula 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 and Isabel Teles; editing by Barbara Lewis)
