International

Germany vows millions for Amazon as Scholz meets Lula in Brazil

Photo: Sergio Lima / AFP

January 31 | By AFP |

Germany on Monday outlined more than $200 million in contributions for environmental projects in Brazil as Chancellor Olaf Scholz visited the South American giant reeling from Amazon destruction under ex-president Jair Bolsonaro.

The package includes a brand-new $33.6 million in aid for Brazilian states for rainforest protection, on top of another $38 million already announced for an Amazon protection fund to which Germany and Norway had halted payments under climate-skeptic Bolsonaro.

Protection of the Amazon — a crucial sink for planet-warming carbon dioxide — was high on the agenda for talks between Scholz and Brazil’s leftist new President Luiz Inacio Lula da Silva that also aimed to “deepen the resumption of relations,” according to the Brazilian presidency.

Scholz was the first German chancellor to visit Brazil since 2015, and the first Western leader to meet Lula since he became president on January 1 after four years of frosty relations with Brazil under far-right Bolsonaro.

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Shortly before Scholz’s arrival in the capital Brasilia, German economic cooperation minister Svenja Schulze announced her country would make additional funds available for Amazon preservation after “difficult years”.

“Brazil is the lung of the world. If it has problems, we all have to help it,” Schulze said at a press conference in Brasilia with Lula’s new environment minister Marina Silva.

Bolsonaro’s four-year term was marked by a surge in fires and clear-cutting in the rainforest.

Average annual deforestation on his watch rose by 59.5 percent from the previous four years, and by 75.5 percent from the previous decade, according to government figures.

German funds for Brazil would also include $32 million for energy efficiency projects for small and medium companies, $9.7 million for “sustainable supply chain projects,” $5.7 million for renewable energy use in industry and transport and $14.2 million for reforestation of degraded areas, according to a Germany embassy statement.

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$87 million would go towards low-cost loans for farmers to “reforest their land.”

Amazon destruction was a major sticking point in a trade deal between the European Union and the Mercosur grouping comprised of Argentina, Brazil, Paraguay and Uruguay.

The blocs reached an agreement in 2019 following 20 years of talks, but it has not yet been ratified.

‘Very interesting partners’

Scholz, who visited Chile and Argentina before heading to Brazil, said in Buenos Aires on Saturday a “quick conclusion” was needed to the trade deal impasse, adding that with Lula in place, “we are in a better position.”

Lula had presided over a sharp drop in deforestation when he previously led Brazil from 2003 to 2010, and has vowed to reboot environmental protection.

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He has said it was “urgent” for a deal to be concluded, but stressed on the campaign trail that further negotiation was needed to ensure Brazil can pursue “our interest in reindustrializing.”

Energy is also on the agenda for talks between the leaders of Europe and South America’s biggest economies.

German business is seeking new opportunities overseas following the economic shock caused by Russia’s invasion of Ukraine, and as concerns grow about reliance on China.

All three countries on Scholz’s itinerary — Argentina, Chile and Brazil — are rich in natural resources and “very interesting partners,” a government source in Berlin said.

In an interview Saturday with the Grupo de Diarios America (GDA) consortium of South American newspapers, Scholz said Germany wanted to boost cooperation with Latin America and the Caribbean on “renewable energies, green hydrogen and responsible trade in raw materials.”

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A Berlin government source said Germany would use the Latin American tour to drum up further international support against Moscow as the war in Ukraine drags on.

Argentina, Chile and Brazil have criticized the invasion of Ukraine at the United Nations but have not adopted sanctions against Moscow.

Lula caused shock last year when he said Ukrainian President Volodymyr Zelensky was “as responsible as” Russian President Vladimir Putin for the conflict.

International

UK braces for potential CO₂ shortage amid Middle East tensions

The government of United Kingdom is preparing contingency measures amid fears of a potential shortage of carbon dioxide (CO₂), which could impact the agri-food industry if the Strait of Hormuz remains blocked due to the ongoing conflict in the Middle East, The Times reported on Thursday.

According to the newspaper, officials assessed this scenario during a recent crisis meeting aimed at evaluating the consequences of a prolonged conflict, triggered on February 28 by joint attacks from United States and Israel against Iran.

Under this scenario, CO₂ supplies—primarily a byproduct of fertilizer production using natural gas—could fall by up to 18%, affecting multiple sectors including agriculture and food production.

The gas is widely used in the slaughter of pigs and poultry, as well as in extending the shelf life of packaged foods. Breweries could also face disruptions due to reduced availability.

“I don’t want to comment on a leak, but now that the information is out there, I hope people feel reassured knowing we are working on it,” said Peter Kyle, Secretary of State for Business and Trade, in remarks to Sky News.

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While a drop in CO₂ supply is not expected to cause major shortages in supermarkets, it could limit product variety, The Times noted, citing access to internal government documents.

To mitigate the impact, authorities are considering prioritizing CO₂ supply for critical sectors such as healthcare and civil nuclear energy, where it is used in cooling systems for blood reserves, organs, vaccines, and electricity generation. The government may also request domestic producers to increase output.

Central America

El Salvador and Paraguay approve 2026–2028 cooperation program

The governments of El Salvador and Paraguay approved the 2026–2028 Cooperation Program, which includes six joint development projects, according to Salvadoran Vice Minister of Foreign Affairs Adriana Mira.

Mira stated that El Salvador will act as the “main provider of cooperation,” contributing five initiatives focused on road infrastructure, tourism, and local development. She also noted that one of the projects will be led by the Paraguayan side, although no further details were disclosed.

The agreement was reached during the Second Meeting of the Joint Commission on Technical and Scientific Cooperation between both countries.

According to Paraguay’s Ministry of Foreign Affairs, the First Meeting of the Political Consultation and Bilateral Coordination Mechanism was also held, with the participation of Vice Minister Víctor Verdún.

In an official statement, the Paraguayan government reported that both delegations agreed to identify mechanisms to promote competitiveness, economic growth, and market access. They also committed to signing agreements related to air transport cooperation.

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International

Macron meets Machado, stresses need for democratic transition in Venezuela

Emmanuel Macron met on Monday at the Élysée Palace with Venezuelan opposition leader María Corina Machado, where they discussed the importance of advancing a democratic transition in Venezuela.

In a message shared on social media, Macron highlighted Machado’s commitment to freedom and stressed the need to achieve a transition that is peaceful and respects the will of the Venezuelan people.

“I received María Corina Machado, Nobel Peace Prize laureate. Together, we discussed her commitment to freedom and the importance of achieving a democratic, peaceful transition in Venezuela that respects the will of its people,” he wrote.

For her part, Machado expressed her “deep gratitude” to Macron and to France for their support of democracy and freedom in Venezuela.

“We have gone through a long and painful journey, and we are now very close to freedom. Venezuela will become a nation of free and equal men and women—prosperous, safe, and united,” she said.