BNDES signs billionaire financing with Japan for green projects

During the official visit of President Luiz Inacio Lula da Silva to Japan, the National Bank for Economic and Social Development (BNDES) signed, on Tuesday, 25, a loan agreement of R $ 1.077 billion (US $ 190 million) with Japan Bank for International Cooperation (JBIC), Tokyo Branch and The Nishi-Nippon City Bank Ltd. finance sustainable projects in Brazil.

According to an official note issued by BNDES, the funds will be intended for initiatives focused on reducing greenhouse gas emissions, focusing on areas such as energy transmission and biofuels production.

Projects will also be contemplated that use renewable sources, including small hydroelectric power plants, solar, wind, biomass and other actions compatible with JBIC Green line criteria.

This is the sixth financing signed between BNDES and JBIC in the Global Action for Reconciling Economic Growth and Environmental Preservation (Green) line, totaling $ 1.14 billion since 2011.

The initiative aims to support projects focused on energy efficiency, environmental preservation and confrontation of climate change.

According to the president of BNDES, Aloizio Mercadante, the expansion of cooperation with international financial institutions is part of the strategy of the Bank for diversification of financing sources.

“BNDES has strengthened its performance with international financial institutions with the objective of diversifying its foundry and expanding investments in Brazil, especially in strategic areas, such as renewable energy generation. JBIC has been one of the main partners of BNDES. Since the 1960s, 18 loan contracts have been signed in the amount of approximately $ 18 billion ($ 3.2 billion),” he said.

The signing of the contract took place in Tokyo, with the presence of the director of Productive Development, Innovation and Foreign Trade of BNDES, José Luís Gordon.

During the ceremony, the executive pointed out that the operation reflects the commitment of the Brazilian government to the ecological transition and strengthens the bilateral relationship with Japan.

“And this partnership deals with an important area, which is the green economy, in which the two countries have a lot to work together, such as the development of sustainable fuels, such as SAF, critical minerals, sustainable mobility and renewable energy,” he said.

Still as part of the official visit agenda, BNDES and JBIC signed a Memorandum of Understanding (MOU) that establishes a cooperation agenda in strategic sectors.

The agreement was signed during a bilateral meeting between the institutions and provides for technical and financial collaboration in areas such as mineral resources and clean energy.

Among the segments foreseen in MOUS are low carbon hydrogen, green ammonia, sustainable aviation fuel (SAF), bioethanol, energy efficiency, energy transmission and distribution, green mobility and preservation of the Amazon rainforest.

The president of BNDES stated that the relationship between the institutions has been expanded based on continuous technical dialogue.

“In addition to maintaining an permanent channel for technical cooperation, BNDES and JBIC have been maintaining dialogues to improve the strategic relationship between the two institutions and identify possible opportunities for mutual cooperation, increasingly frequent in the face of mitigating the effects of climate emergency,” said Mercadante.

JBIC is the state -owned international promotion bank of the Japanese government. Among its attributions are the promotion of sustainable development, support for the competitiveness of Japanese companies, environmental preservation and the strengthening of economic relations between Japan and partner countries.

The institution has prioritized partnerships focused on facing climate change through investments in green infrastructure and clean technology.

The new operation occurs amid a scenario of expanding international investments in energy transition and environmental preservation projects. President Lula’s visit to Japan’s visit includes bilateral meetings and discussions on trade, climate and technological cooperation.