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THE HAGUE, Netherlands - Brazil and the Netherlands agreed Friday to work together on the sustainable production of biofuels and to help developing nations establish their own crops to make alternatives to fossil fuels.
President Luiz Inacio Lula da Silva signed a cooperation agreement on the second and last day of his state visit to the Netherlands. Silva was flying to the Czech Republic after an official farewell ceremony at Queen Beatrix's Noordeinde Palace.
Dutch Foreign Minister Maxime Verhagen said Brazil, the world's largest producer of ethanol from sugar cane, is well placed to help the European Union meet its target of having biofuels make up 10 percent of fuel needs in the bloc's transport sector by 2020.
But he said that the ethanol has to be produced sustainably _ meaning without muscling out food crops or leading to deforestation.
"This is in both our interests," Verhagen said. "It is in your interest as an exporter to a potentially enormous market, and it is in our interest because we want to honor our European commitments and diversify our energy mix to avoid being overly dependent on too few suppliers."
Brazilian and European officials at a climate change conference in Brasilia two months ago discussed independent inspections of Brazil biofuel operations to ensure ethanol is produced in an environmentally sustainable manner with no rain forest deforestation.
But the talks hit a stumbling block because Brazilian representatives insisted European tariffs on ethanol must be lifted before independent inspections begin. The European representatives said the inspections would have to take place before tariffs are slashed.
The biofuel pact signed by Silva and Dutch Economic Affairs Minister Maria van der Hoeven commits the two countries to cooperate on sustainable production and transport of biofuels, the Dutch government said in a news release.
The Netherlands and Brazil also will help developing nations build their own biofuel industries.
The Dutch are keen to work with Brazil as Rotterdam harbor is a key entry port for biofuels shipped to Europe.
The agreement "shows that Brazil and the Netherlands are working seriously on sustainable energy sources that are economically and socially responsible," Van der Hoeven said.