According to the top officials of Brazil’s government, Brazil and China to join hands to initiate a green investment fund. The idea will probably be unveiled during President Luiz Inacio Lula da Silva’s visit to China next week, according to government sources, but certain specifics are still to be worked out.
Mr Amorim, Mr da Silva’s foreign policy advisor, stated that he expected a renewable energy deal during Mr da Silva’s visit, which incorporates a discussion with Chinese President Xi Jinping. He also mentioned he is not sure if it will be feasible to announce it since these things are complicated, but the aim is to establish a bilateral fund for investment in the energy sector.
China has recently shown its conviction in producing green hydrogen and also in making more sustainable and pro-renewable energy choices. Also, recently, Sinopec, Chinese Petroleum and Chemical Company, has established its first green hydrogen pilot program in the Inner Mongolia Autonomous Region with a 5.7 Billion Yuan investment. The scope includes wind and solar power generation, power transmission and transformation, water electrolysis hydrogen creation, storage, and delivery.
Last year, the country produced 33 million metric tonnes of hydrogen, making it the world’s largest producer, and production is expected to increase to 43 million tonnes by 2030.
Increasing the usage of “green hydrogen” will be critical for China to meet its dual carbon objectives, as future power supply expansion will mostly derive from non-fossil sources.
The National Development and Reform Commission and the National Energy Administration collaborated on a 15-year plan to grow the hydrogen energy sector and increase the share of such energy generated from renewable sources. All this has made china the best partner in this green investment fund.
The new fund under consideration, according to Brazilian Environment Minister Marina Silva, would be used to restore forests and establish a more sustainable economy, including the generation of green hydrogen.
Brazil has already secured a promise on climate policy and forest conservation from US President Joe Biden’s administration. And now, as Brazil and China to join hands to initiate a green investment fund, this can be a step towards more mended relations between the two countries.