In a bid to reduce dependence on fossil fuels and promote sustainable energy, the European Union (EU) has announced a significant investment of €2 billion (R$ 10.5 billion) in the production of green hydrogen in Brazil.
The announcement was made by the President of the European Commission, Ursula von der Leyen, during her visit to the Planalto Palace, where she also pledged an initial donation of €20 million (R$ 105 million) to the Amazon Fund.
Von der Leyen expressed Europe’s commitment to supporting the Brazilian production of green hydrogen, with the aim of enhancing energy efficiency in the country’s industry. The EU’s investment aligns with its goal of transitioning to clean energy sources and reducing carbon emissions. The European Commission president emphasized the importance of addressing deforestation in the Amazon rainforest and acknowledged Brazil’s plan to eliminate illegal deforestation by 2030.
The €20 million donation to the Amazon Fund is part of Europe’s broader strategy to combat deforestation and promote sustainable land use. Von der Leyen revealed that there is already a project worth €480 million dedicated to this cause. The EU’s contribution to the fund had been under consideration since February when France’s Chancellor, Catherine Colonna, expressed her country’s intention to contribute individually.
While the European Union has become the third-largest donor to the Amazon Fund since President Luiz Inácio Lula da Silva took office, the €20 million donation is the smallest announced this year. The United States committed to contribute $500 million, and the United Kingdom pledged £80 million. The Amazon Fund has so far collected approximately R$3.3 billion, with major contributions from Norway, Germany, and Petrobras.
President Lula intends to leverage the Amazon Cooperation Treaty countries’ summit to raise additional resources and has invited European leaders, including those from France and Ireland, as guests. The EU’s investment announcement comes in response to China’s growing presence in the Americas, particularly through infrastructure financing. The bloc plans to invest a total of €10 billion in Latin America and the Caribbean, further strengthening its strategic partnership with the region. The Global Gateway plan will be complemented by private resources and individual contributions from the 27 EU member states.
In a nod to Lula’s foreign policy slogan, “Brazil is back,” President von der Leyen praised Brazil’s emergence as an international democratic leader and highlighted the return of Europe’s engagement with Brazil and Latin America. She emphasized that the EU and Latin America are natural partners by choice, and the investment in green hydrogen production symbolizes the shared commitment to a sustainable and prosperous future.
