The Canadian government announced a series of investments and cooperation agreements with Brazil aimed at strengthening bilateral ties in energy infrastructure, clean fuels, science and technology, health, customs enforcement and wildfire response.
The measures were announced by Canada’s Minister of Foreign Affairs, Anita Anand, as part of a broader initiative to deepen economic and institutional cooperation between the two countries.
FinDev Canada Backs Expansion of Electricity Distribution in Brazil
FinDev Canada announced a US$30 million loan to Equatorial Maranhão Distribuidora de Energia S.A. as part of a US$50 million financing package co-financed with Sumitomo Mitsui Banking Corporation (SMBC).
The transaction includes a US$20 million contribution from SMBC and marks the first infrastructure co-financing partnership between FinDev Canada and the Japanese financial institution.
The financing will support the expansion and modernization of Equatorial Maranhão’s electricity distribution network, which serves nearly three million customers in the Brazilian state of Maranhão.
According to the Canadian government, the project aims to expand electricity access, particularly in rural and low-income communities, while increasing new customer connections, reducing network losses and improving service reliability through fewer and shorter power outages.
Financing Supports Sustainable Aviation Fuel Project in Bahia
FinDev Canada also committed a US$58 million loan to Acelen Renewable to support the construction and operation of a biorefinery in the state of Bahia.
The facility will use hydroprocessed esters and fatty acids (HEFA) technology to produce sustainable aviation fuel (SAF) and renewable diesel.
The project is expected to process 20,000 barrels of feedstock per day, producing approximately 18,000 barrels per day of SAF, with most of the output destined for export markets in Europe and North America.
The Canadian financing is part of a broader US$854 million construction financing package involving development finance institutions and commercial lenders, including the International Finance Corporation (IFC), HSBC, IDB Invest, KfW Development Bank and Banco Bradesco.
Cooperation Expands Beyond Infrastructure
In addition to the financing announcements, Canada and Brazil advanced cooperation across several strategic areas.
The two countries signed a Wildfires Mutual Assistance Operating Plan, creating a framework that will allow Brazilian firefighters to assist Canada during future wildfire seasons while facilitating technical cooperation and information sharing on wildfire management.
Canada and Brazil also confirmed the resumption of the Joint Committee for Cooperation on Science, Technology and Innovation, with the next meeting scheduled for September in Brasília. The committee will discuss joint initiatives in research, innovation and government priorities, including cooperation in artificial intelligence.
The governments also announced a Customs Mutual Assistance Agreement (CMAA) between the Canada Border Services Agency and Brazil’s Federal Revenue Service, aimed at strengthening cooperation against customs fraud, smuggling and other cross-border trade violations while enhancing trade security.
In the health sector, Canada and Brazil signed a Memorandum of Understanding on Health Sector Cooperation, establishing a framework for technical and scientific collaboration in areas including health surveillance, immunization and environmental health.
The announcements reflect a broader effort by Canada and Brazil to deepen cooperation across infrastructure, clean energy, innovation and public policy, while expanding economic ties and supporting long-term sustainable development initiatives between the two countries.
