BNDES is Brazil's only policy-based financial institution specializing in providing long-term funds. Given the mission of fostering sustainable development in the Brazilian economy, BNDES is actively providing support for climate change measures and industrial innovation, in addition to its previous infrastructure support. JBIC and BNDES have built up a close cooperative relationship over 60 years, with JBIC providing loans and technical assistance to projects in Brazil in such areas as industrial investment, export promotion, and infrastructure development. In line with this loan agreement, a Memorandum of Understanding was signed
*3 to strengthen cooperation in fields such as mineral resources, sustainable energy resources, and climate change response. As a result, the relationship between the parties is expected to be enhanced even further. In its Nationally Determined Contributions (NDC), an action plan that addresses climate change under the Paris Agreement, the government of Brazil has set a target of reducing greenhouse gas emissions (GHG) by 59–67% compared to 2005 levels by 2035, with the aim of achieving net zero emissions by 2050. In addition, it has positioned the development of renewable energy and biofuels as specific investment targets in its Programa de Aceleração do Crescimento (PAC, Growth Acceleration Program). The credit line will contribute to the government’s initiatives. At a summit meeting held on the sidelines of the G7 Hiroshima Summit in May 2023, the two countries launched a new international framework, the Initiative for Sustainable Fuel and Mobility (ISFM). It aims to achieve carbon neutrality by combining Brazil's high potential in biofuels and e-fuels with Japan's high-performance mobility equipment, such as hybrid engines. The loan aligns with this framework.
