Beijing-Brasilia relations key to energy transition

China's increasingly close relationship with Brazil could prove key to generating more renewable energy in both countries and, in time, address the global climate crisis, experts said.

"Exchange of knowledge and technologies between China and Brazil can be mutually beneficial, with Brazil contributing its expertise in biomass and hydropower, while China brings innovations in solar panels, batteries and smart grid infrastructure," said Evandro Menezes de Carvalho, a senior fellow at Peking University's Institute for Global Cooperation and Understanding and a coordinator of the Brazil-China Research Group at Brazilian think tank Getulio Vargas Foundation School of Law.

Brazil has emerged as a top destination for Chinese foreign direct investment, particularly in sectors that can help the country diversify and secure its clean energy supply chains.

Between 2007 and 2023, Brazil was the fourth-largest investment destination for China after the United States, Australia and the United Kingdom, according to the Brazil-China Business Council. In 2023, China's investments in Brazil reached $1.73 billion, a 33 percent jump from 2022.

Almost three-quarters of those investments were focused on projects related to renewable energy, sustainability and decarbonization. These investments can help multiple goals, de Carvalho noted. On the one hand, they can support Brazil's growth and economic diversification. On the other, they can help diversify China's renewable energy supply chains, he said.

China is a leader in the green economy transition, while Brazil has historically had a role as a guardian of global natural resources, given its vast Amazon rainforest, de Carvalho said.

"This creates an opportunity for cooperation, as both countries share the need to reconcile economic growth with environmental preservation," he said.

Important location

Brazil is an important location for green projects because it has one of the cleanest energy matrices among the G20 nations. Almost half of Brazil's energy supply and 80 percent of its electricity is sourced from renewables, according to the World Bank.

"Sino-Brazilian cooperation in clean technologies allows Chinese companies to expand their business and technology in Brazil while helping the country increase its production of sustainable energy," said de Carvalho.

As it pushes a new plan for industrialization, Brazil is also moving ahead with significant energy transition. China's role in this process can be significant, said Javier Vadell, an international relations professor at Brazil's Pontifical Catholic University of Minas Gerais.

In August, Brazilian President Luiz Inacio Lula da Silva launched the National Energy Transition Policy that aims to secure more than $364 billion in investments in the green economy over the next decade.

It is not just green energy projects that drive the relationship between Brazil and China, which are both part of the G20 grouping. Vadell said the bilateral trade relationship is also poised to continue growing on other fronts. Brazil is a major seller of agricultural products, minerals and meat products.

Brazil's relationship with China has always been good, Vadell noted. It was the first country in Latin America to sign a strategic partnership agreement with China.

Both countries have signed up to the Paris Agreement and vowed to reduce greenhouse gas emissions.

China has committed to reaching peak emissions before 2030 and achieving carbon neutrality before 2060. Investing in Brazil's renewable energy projects can help Beijing meet those goals, said de Carvalho.

The writer is a freelance journalist for China Daily.