August 2002

Brazil wants 'green car' tradeoff with Germany

26 August 2002: Brazil is hoping for German support to revitalise its alcohol-powered car programme which uses renewable sources for a proportion of its fuel needs.

The South American country's officials are trying to have the deal signed at this week's Earth Summit in Johannesburg, under which Germany would subsidise the production of 100,000 cars that run on alcohol produced from sugar cane.

The fuel is also 'greener' than fossil fuels.

There are some 3m cars in Brazil which run on alcohol, but none are currently being produced because of a lack of subsidies.

The advantage to Germany would be permission for that country to gain pollution permission 'credits' in return for helping developing countries improve their environmental situation.

But in return, South America's largest country would ask that developed countries would moves more swiftly to getting at least 10 percent of their energy from renewable sources by 2010.

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- Brian Byrne