BNDES raises R$ 1,077 billion in Japan to boost clean energy and biofuels.

247 - In a strategic move toward Brazil's energy transition, the National Bank for Economic and Social Development (BNDES) announced on Tuesday, March 25, in Tokyo, the contracting of a loan of R$ 1,077 billion (US$ 190 million) with the Japan Bank for International Cooperation (JBIC), Citibank NA Tokyo Branch, and The Nishi-Nippon City Bank Ltd. 

The funds will be allocated to projects in Brazil focused on energy transmission and the development of biofuels, contributing to the reduction of greenhouse gas (GHG) emissions. This initiative takes place in the context of President Luiz Inácio Lula da Silva's state visit to Japan and reflects the growing synergy between the environmental agendas of the two nations.

“BNDES has strengthened its work with international financial institutions with the aim of diversifying its funding and expanding investments in Brazil, especially in strategic areas such as renewable energy generation,” stated the president of BNDES, Aloizio Mercadante. He also highlighted that JBIC is a long-standing partner: “Since the 60s, 18 loan agreements have been signed, totaling approximately R$ 18 billion.”

According to José Luís Gordon, Director of Productive Development, Innovation and Foreign Trade at BNDES and the institution's representative at the signing ceremony in Tokyo, the partnership with JBIC is part of a commitment by the Lula government to strengthen ties with Japan through a green agenda. "This partnership addresses an important area, which is the green economy, in which both countries have much to contribute together, such as in the development of sustainable fuels, critical minerals, sustainable mobility, and renewable energy," stated Gordon.

In addition to the financial transaction, BNDES and JBIC signed a Memorandum of Understanding (MoU) to expand cooperation between the institutions in sectors considered strategic, such as mineral resources, sustainable energy, low-carbon hydrogen, green ammonia, bioethanol, energy efficiency, green mobility, and conservation of the Amazon Rainforest.

“In addition to maintaining an open and permanent channel for technical cooperation, BNDES and JBIC have been engaging in dialogue to enhance the strategic relationship between the two institutions and identify potential opportunities for mutual cooperation, which are becoming increasingly frequent given the need to mitigate the effects of the climate emergency,” Mercadante emphasized.

This is the sixth funding round by BNDES with JBIC under the Green line, which since 2011 has totaled US$950 million (R$5,3 billion). Projects supported under this modality must have a positive impact on global environmental preservation and climate change mitigation, in accordance with the initiative's objectives. Global Action for Reconciling Economic Growth and Environmental Preservation (Green).

The JBIC, in turn, has the mission of supporting global sustainable development, strengthening the competitiveness of Japanese industries, and preserving the environment, as well as contributing to the stability of the international economic order. This partnership reinforces Brazil's leading role in sustainable solutions and its willingness to lead a global climate agenda in alliance with major economies.