At an important moment for the global climate agenda, the two countries signed a strategic partnership during the G20 Finance Track ministerial meeting in Rio de Janeiro.
Brasil's Finance Minister Fernando Haddad and U.S. Treasury Secretary Janet Yellen led the signing of a landmark agreement during the G20 Finance Track ministerial meeting in Rio de Janeiro. The Climate Partnership brings together the two major G20 economies in a joint effort to address climate challenges and promote sustainable development, marking a new chapter in bilateral cooperation.
Haddad highlighted the symbolic and practical importance of the new partnership: "The United States and Brasil were never far away. They maintain a common culture, principles, and values. Politics is not just about numbers, it is about symbols too. As stakeholders, we have decided to strengthen ties between our two countries and give visibility to this increased understanding - which, in the current context of great geopolitical tension, is an essential step towards setting an example: building a better world in a cooperative way."
Yellen highlighted the ongoing work of the US Treasury and the Brazilian Ministry of Finance teams that culminated in the agreement: "Since President Joe Biden's administration began, we have been working to enhance collaboration with Brasil, particularly on climate and environmental priorities. Since the beginning of the Biden administration, we have worked to increase collaboration with Brasil on collaborative priorities referring to climate and the environment. Brasil has placed these issues at the top of the agenda for its G20 presidency - ambitious work that includes through multilateral development banks and climate funds."
Haddad emphasized the choice to focus on climate: "We have chosen a topic that is decisive to our future to strengthen mutual relations between our countries - precisely climate-related issues. Brasil and the United States share the value that they must make increasingly consistent efforts to promote climate change action across various areas."
US Treasury Secretary Janet Yellen reiterated the shared commitment to sustainability: "I am delighted that we are jointly announcing the launch of the Brasil-US Climate Partnership today. There are deep ties between the United States and Brasil, including a strong research and development investment relationship, recognizing that we are two major economies."
Yellen highlighted the ongoing work of the US Treasury and the Brazilian Ministry of Finance teams that culminated in the agreement: "Since President Joe Biden's administration began, we have been working to enhance collaboration with Brasil, particularly on climate and environmental priorities. Since the beginning of the Biden administration, we have worked to increase collaboration with Brasil on collaborative priorities referring to climate and the environment. Brasil has placed these issues at the top of the agenda for its G20 presidency - ambitious work that includes through multilateral development banks and climate funds."
"We are deeply committed to addressing the consequences of the floods in the state of Rio Grande do Sul. This was one of many recent tragedies that reveal the impact that climate change and the loss of nature and biodiversity have on lives of cities and economies around the world. Our pact is also built on work - in the United States, the Inflation Reduction Act and the bipartisan law that creates more resilient infrastructure, supporting investments in conservation and acting on the growth of clean energy industries," said the Secretary.
Agreement Objectives and Guidelines
The Brasil-US agreement, signed during the G20 Finance Ministers and Central Bank Governors' Meeting in Rio de Janeiro, presents clear guidelines for bilateral cooperation:
1. Clean Energy Supply Chains: Work together to develop policies that mobilize private investment to diversify global supply chains, promoting clean energy.
2. High Integrity Carbon Markets: Strengthen carbon markets, ensuring that are been used efficiently to mitigate climate change.
3. Nature and Biodiversity Finance: Develop innovative solutions for the conservation and restoration of nature and biodiversity.
4. Multilateral Climate Funds: Improve access to finance for emerging markets and developing countries, mobilizing finance from the public and private sectors.
Commitment to Joint Action
At the end of his speech, Haddad reflected on the importance of the occasion: "In Brasil, we have been insisting that these concepts must be considered more extensively in the Americas. We want to be closer, to work together, and to set an example of international cooperation. This is just one of the diplomatic actions that Brasil has been carrying out, and which is important in the current context."
Yellen concluded with a message of optimism: "The complementary work agendas mean that we have much to gain from more coordination and collaborative activity. With this partnership, we plan to work together to address environmental challenges and strengthen the region's economy."
