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The Japan Bank for International Cooperation (JBIC; Governor: HAYASHI Nobumitsu) signed on November 13 a Memorandum of Understanding (MOU) with Banco do Brasil, taking the opportunity of the 30th Conference of the Parties to the United Nations Framework Convention on Climate Change (COP30).
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The purpose of the MOU is to strengthen the cooperative relationship related to the mitigation of climate change and sustainable use of resources, primarily in the fields of biofuels and electricity transmission, as well as to establish a credit line in these areas.
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Banco do Brasil is positioning itself as a domestic leader in ESG finance in Brazil and has a competitive advantage in the agricultural sector. In its Sustainable Finance Framework announced in February 2024, Banco do Brasil aims to promote financing in climate change-related areas, including biofuels and electricity transmission. JBIC aims to strengthen its partnership with Banco do Brasil, which possesses strengths in the agricultural and sustainability sectors. Through this collaboration, JBIC expects to enhance its future capacity to support not only the production of biofuels but also the cultivation of biofuel feedstock such as sugarcane and corn.
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Furthermore, as the host of COP30, the Brazilian government is presented with a significant opportunity to play a leading international role in climate change-related fields. 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 MOU will also contribute to the government's initiatives.
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In May 2024, when then-Prime Minister of Japan KISHIDA Fumio visited Brazil, 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. Additionally, in September 2025, Japan and Brazil co-chaired the first Ministerial Meeting on Sustainable Fuels, held in conjunction with Expo 2025 Osaka, Kansai, Japan. The meeting brought together 34 countries and organizations, reaffirming that sustainable fuels, such as biofuels, play a vital role not only in reducing greenhouse gas emissions, but also in contributing toward energy security, economic growth, and job creation. At the COP30 Leaders’ Summit held in November 2025, Brazil, as the chair country, jointly with Japan and Italy, announced a target to more than fourfold the use of sustainable fuels, including biofuels, by 2035 compared to 2024 levels, with 19 countries endorsing it. The MOU aligns with these intergovernmental efforts. It is expected to support the realization of a decarbonized society, which is pursued by both countries, the maintenance and development of Japan’s automotive industry, and the enhancement of Japan’s economic security.
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As Japan's policy-based financial institution, JBIC will continue to financially support the creation of business opportunities and the promotion of business for Japanese companies and contribute toward the further development of close economic relations between Japan and Brazil while collaborating with such overseas policy-based financial institutions.
