Japanese Prime Minister Fumio Kishida is expected to sign a cooperation deal on decarbonization with Brazil during a trip there in early May, including developing biofuel technologies and combating deforestation.
Kishida and Brazilian President Luiz Inacio Lula da Silva will agree to the Green Partnership Initiative. He will be the first Japanese leader to visit Brazil since Shinzo Abe’s trip in 2016. He will also visit Paraguay.
The prime minister will also bring a delegation representing at least 40 companies, eyeing greater Japanese investments in Brazil to bolster bilateral cooperation on green technologies.
As this year’s chair of the Group of 20 leading rich and developing nations, Brazil is pushing the goal of fighting climate change while promoting sustainable development. The South American country is scheduled to host the annual United Nations climate change conference (COP30) in 2025 as well.
With Brazil playing a key role in shaping the global agenda on decarbonization, Tokyo hopes the new deal will highlight Japan’s cooperation with the emerging and developing countries of the Global South on climate change.
Biofuels are at the heart of the bilateral cooperation framework.
Biofuels, derived from plants and other biomass, emit less carbon dioxide than gasoline. Japan considers them critical to reducing its dependence on oil, and is exploring ways to boost imports.
Brazil holds a roughly 30% global share in bioethanol and ranks second only to the U.S. as a producer. Japan imported around 340,000 kiloliters of the fuel from Brazil in fiscal 2021, equivalent to about 60% of its imports from the U.S., and sees room for a further increase.
There are also efforts to turn bioethanol into a component for sustainable aviation fuel as airlines explore ways to reduce emissions. The Green Partnership Initiative will encourage cooperation between the Japanese and Brazilian private sectors in this area.
Japanese companies are increasing biofuel-related investments in Brazil.
Toyota Motor in March announced plans to invest 11 billion reals ($2.13 billion) there by 2030, including to produce a new compact hybrid vehicle that can be powered by biofuels. The automaker said it will create 10,000 direct and indirect jobs by 2030 through expanding a plant in Sao Paolo.
Trading house Mitsui & Co. aims to produce cellulose and other related materials in Brazil, bolstering supply chains there.
Japan’s Strategic Energy Plan compiled in 2021 said the government will study international trends on the adoption of bioethanol and other biofuels. The upcoming deal with Brazil is part of this plan.
Brazil sees Japanese technology advancing its goal of environmentally conscious economic growth…
