The European Union promised to allocate 45 billion euros in investments to countries in Latin America and the Caribbean to boost the region’s green and digital transition.
The announcement was made by the President of the European Commission, Ursula von der Leyen, during the EU-Celac summit in Brussels, Belgium. The two-day event brought together leaders from the 33 countries of the Community of Latin American and Caribbean States (Celac), including President Luiz Inácio Lula da Silva.
What is the EU’s interest in the region?
The countries of Latin America and the Caribbean had their passes valued alongside the Europeans with the intensification of the climate crisis and the large-scale invasion of Ukraine by Russia. The region is rich in important raw materials for the transition to a low-carbon economy, such as lithium, for example.
Cooperation has become more urgent in the face of Vladimir Putin’s authoritarian escalation, which has exposed Europe’s dependence on Russian gas. The EU’s diplomatic offensive is also a reaction to China’s strong presence in the region.
The bloc acts to avoid a geopolitical order divided between the interests of Washington and Beijing; at this point, the interests of Istanbul and Brussels converge.
According to the EU, the foreign investment agenda, known as the Global Gateway, encompasses more than 130 projects in the region and includes, among other things, investments in infrastructure, scientific cooperation for monitoring the climate and natural disasters, the production of drugs and vaccines, support for a green bond market, and an anti-poverty program.
So far, the EU has concretely listed projects in Brazil linked to the following areas: climate and energy, digital, and transport. The list below does not include all initiatives; it only includes those cited so far by the European bloc.
Amazon Fund
Brazil will benefit from a donation of 20 million euros from the bloc to the Amazon Fund, something that had already been announced by von der Leyen during a trip to Brazil in early June.
The contribution to the fund, which until then was mostly funded by Norway and Germany, will be added to other additional contributions from EU member countries, the United States, and the United Kingdom.
Forest protection
The EU will also invest in initiatives to prevent deforestation, promote a sustainable bioeconomy, and trace supply chains. In June, von der Leyen had already announced the transfer of more than 400 million euros to actions to combat deforestation and inadequate land use in the Amazon.
It will also implement the Amazonia+ program with a supra-regional scope, covering, in addition to Brazil, Bolivia, Colombia, Ecuador, Guyana, Peru, Suriname, and Venezuela.
With an allocation of 35 million euros, the program will promote the sustainable use of forest goods and services, transparent and deforestation-free supply chains, and the empowerment of indigenous communities in governance processes in the region.
Promoting deforestation-free export chains is the objective of a law recently approved by the European Union that prohibits the export of products such as cocoa, coffee, soy, palm oil, wood, beef, rubber, and cultivated derivatives to the bloc in areas deforested after December 2020.
The legislation was met with criticism from the Brazilian government and agribusiness sectors.
Renewable energies
The bloc will also help finance infrastructure for solar and wind energy generation, as well as energy efficiency projects and the generation of green hydrogen.
Fuel produced from renewable energies, such as green hydrogen, emerges as the main bet of developed countries towards a low-carbon economy. Brazil has favorable conditions to become a major global producer, and the partnership with Germany in this field is promising.
Infrastructure
The EU will support the modernization of the public water supply and sewage system in Santa Catarina and the expansion of telephone networks in the Amazon region, as well as the construction and operation of infrastructure at the Port of Santos.
Other projects
The other projects in Brazil supported by the EU include promoting strategic partnerships in the area of digital transition, including cybersecurity, digital governance, and regulation.
