Brazil aims to spend US$2.85 billion on renewable energy and biofuel research in a bid to modernize its energy industry, according to a government official.
The President of Brazil, Dilma Rouseff, plans to triple funds for innovative technology companies, Alexandre Tanaka, an official from Brazil’s research-financing agency Financiadora de Estudos e Projetos (FINEP) told Bloomberg News.
Tanaka told the newswire that Brazil is looking to transition to become a supplier of fuel-production technology and processes, instead of buying from other countries stating: “technology innovation is a long-term investment.”
FINEP and the Brazilian Development Bank (BNDES) will provide loans for companies working on renewable energy and biofuel research under a government program that will allow interest rates as low as 3.5%.
Mark Kenber, CEO, The Climate Group, said: “Government investment to support innovation in clean energy technology will drive job creation and offer green investors incentives and stability, which will help Brazil compete with in the fast expanding clean energy markets around the world.
“Brazil has huge potential to lead the global clean revolution, and with plans like these it looks like the nation is now ready to kick-start such efforts.”