Establishing a Climate-Forward Clean Energy Industrial Partnership

Brazil and the United States share the goal of creating more competitive, clean, fair, and resilient economies by promoting the clean energy transition in a way that fosters  economic growth and the generation of high-quality jobs, while reducing emissions and keeping our 1.5°C goals within reach, consistent with the Paris Agreement. Along with other domestic priorities, these objectives align with the following public policy agendas in both countries:

• Brazil has recently launched its policy of development called Nova Indústria that seeks to strengthen Brazil’s industrial capacity and supply chains, including in bioeconomy decarbonization and energy security. Brazil also has, among other policies, the Ecological Transformation Program, the Fuels of the Future Program, the National Plan for Energy Transitions (PLANTE), and the National Hydrogen Program (PNH2).

• The United States is implementing ambitious pieces of legislation, including the Bipartisan Infrastructure Law and the Inflation Reduction Act, which contain significant incentives to diversify clean energy supply chains and accelerate the growth of both clean power generation and clean energy technology manufacturing, including clean hydrogen and sustainable aviation fuel.

Brazil and the United States have immense potential to lead the global energy transition on some of its most promising fronts. This new partnership presents a strategic opportunity to strengthen bilateral cooperation on clean industrial development, leveraging complementarities across both our public and private sectors. The two sides announce their intent, in particular, to focus coordination across three pillars:

1. Clean energy production and deployment: accelerate and expand clean energy production and deployment, particularly to harness Brazil and the United States’ vast clean and renewable resources, including wind, solar, hydropower, and potentially, other biocapacity resources. This would accelerate efforts to decarbonize the power, transportation, and industrial sectors.

2. Clean energy technology supply chain development: increase cooperation on innovation, workforce training, and project development for clean technologies, including efforts to manufacture solar and wind components, long-duration storage batteries, and zero and low-emission vehicles and components; produce clean hydrogen; increase production, processing, and recycling of critical minerals; and scale carbon management technologies.

3. Green industrialization: advance efforts to decarbonize manufacturing and industrial sectors writ large to attract investments from global companies, and drive closer coordination across Brazilian and U.S. private sector partners to achieve net-zero emissions in their supply chains, as well as position our companies to effectively compete in a world where global trade will increasingly account for embedded emissions. 

Brazil and the United States, through a leader-level partnership around these three priorities, intend to align incentives and mobilize public, private, and multilateral development bank (MDB) financing to generate a myriad of shared benefits, such as creating local clean energy jobs that empower communities and workers; integrating and expanding clean energy supply chains; advancing clean energy technological development; and stimulating new investments, including in the areas of climate resilience and combatting deforestation. The partnership intends to serve as a framework to elevate and coordinate the strong existing collaboration between Brazilian and U.S. institutions, including the U.S.-Brazil Energy Forum, the Fazenda-Treasury Climate Partnership, the U.S.-Brazil Climate and Clean Technology Plan, the U.S.-Brazil CEO Forum, the U.S.-Brazil Clean Energy Industry Dialogue, the U.S.-Brazil Climate Change Working Group, and the U.S.-Brazil Strategic Minerals Dialogue.

Through this partnership, announced by Presidents Lula and Biden, Brazil and the United States intend to mobilize all relevant government agencies in our countries to shape and accelerate just and inclusive energy transitions and provide the needed signals for public and private sector stakeholders to fully participate in this effort.

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