Brazil and the UK sign memorandum of cooperation on decarbonizing the economy

On Saturday (2/12), Brazil and the United Kingdom signed a cooperation agreement on projects to support the decarbonization of the industrial sector. The document was signed in Brazil by the Minister for Development, Industry, Trade and Services (MDIC), Geraldo Alckmin, and handed over this Saturday to the UK's Minister for Energy Security and Net Zero, Claire Coutinho, at a signing ceremony that occurred in Dubai, in the United Arab Emirates, during the United Nations Organization's Climate Conference, COP 28.

The memorandum aims to increase the MDIC's capacity to identify, align and combine sources of international assistance with projects to support the decarbonization of the Brazilian industrial sector. In this sense, it seeks to promote the development and implementation of new clean technologies. At the signing ceremony in Dubai, the MDIC was represented by the Secretary for Green Economy, Decarbonization and Bioindustry, Rodrigo Rollemberg.

In the memorandum, the cooperation structure was named the Hub for Industrial Decarbonization in Brazil (HDIB). It will function as a hub for international partnerships with an interest in decarbonizing the industrial sector, including technical assistance providers, international climate finance donors, private investors and other industrial initiatives in order to facilitate the identification, alignment and matching of proposed measures.

The activities carried out in connection with the hub should support the MDIC in developing a coordinated, effective and efficient program of actions to support the decarbonization of Brazil's industrial sector. The participants understand that the HDIB could also act as a first pilot for this form of provision of international sectoral assistance.

Among the forms of cooperation envisaged in the memorandum are: understanding the needs and ambitions of the Brazilian government in decarbonizing its industrial sector; articulating international partnerships with an interest in decarbonizing the industrial sector; encouraging international climate finance donors to participate in and support the work of the HDIB; promoting HDIB activities at major international climate and clean energy events and identifying opportunities for public engagement; providing technical and financial assistance for industrial decarbonization projects in Brazil by the British government under its International Climate Finance policy program.

Cooperation will also take the form of ongoing dialogues and exchanges of technical and political knowledge, workshops to share information on ways of promoting decarbonization in the industrial sector. The British embassy in Brasilia will set up a post, with collaborators from the UK, to facilitate cooperation and collaboration between the hub participants.

"In line with the Brazilian government's commitment to achieving the goals of the Paris Agreement and the Sustainable Development Goals, we signed the memorandum of understanding, which will support the development of decarbonization pathways for heavy industries such as steel, cement and concrete," said Minister Alckmin. "For this, we considered the UK's great expertise in the development of the green economy and the possibilities of helping Brazil not only technically, but also financially to increase its sustainability in industry, through instruments such as the Amazon Fund and the Climate Fund," added the minister.

Rollemberg also commented on the importance of the memorandum. "We signed this partnership with the United Kingdom for decarbonization to take advantage of experiences already developed by other countries," said the secretary. "The United Kingdom has been an example in this regard and we will be able to accelerate the processes of industrial decarbonization in our country," he added, after citing the 48% drop in deforestation in the Amazon this year and the progress made in the National Congress on the energy transition agenda.

Brazil is well placed to lead global decarbonization, given its clean energy matrix and its potential for innovation in renewable energies. Our goal, however, is not only to meet climate targets, but also to boost the economy, to create jobs and to promote sustainability on all fronts," said the secretary. "We trust in our partnership with the UK to achieve these goals," he concluded.

For the British representative, the hub's efforts are part of a process of strengthening bonds between the two countries in areas such as carbon markets, climate governance, research institutions, companies and investors in areas such as energy, bioeconomy and agriculture.

"I hope that our partnership continues to deliver results and to grow, based on respect, dialogue, balance and common interests, while providing benefits for our peoples and moving us forward towards the economy of the future," he completed.