Bloomberg. Japanese Prime Minister Junichiro Koizumi and Brazilian President Luiz Inacio Lula da Silva agreed on the need for more non-governmental cooperation to promote ethanol use, according to a statement released in Tokyo by the Ministry of Foreign Affairs.

Japan expects to introduce more vehicle fuels containing ethanol, and will pursue ongoing talks with Brazil.

Japan is turning to ethanol as a fuel additive as one measure to help it meet its goal for reducing emissions of greenhouse gases under the Kyoto Protocol. Brazil wants to increase its ethanol exports by boosting sales to Japan, the world’s second-largest gasoline market after the U.S.

Six Japanese prefectures are running tests with ethanol. Currently, gasoline in Japan may contain up to 3% ethanol. Brazil requires gasoline to contain a minimum of 25%.

Separately, Japanese media reported that Mitsui & Co. is working with Brazil’s Petrobras and Vale do Rio Doce (CVRD)  to study how to expand Brazil’s exports of ethanol.

Earlier this year, Brazil’s Ministry of Agriculture, Livestock, and Supply and the Japan Bank for International Cooperation (JBIC) announced that they were developing a bilateral program  to increase the production of ethanol and biodiesel in Brazil and its supply to the Japanese market. (Earlier post.)