Brazilian President Luiz Inacio Lula da Silva has defended his country's biofuel production policy against criticism from the European Union.
At a press conference in Brasilia with German Chancellor Angela Merkel, Lula said the production of ethanol had no negative impact on the environment. Earlier, Merkel had called for biofuel production in Brazil that did not damage the Amazon rainforest. The two leaders also signed an agreement for cooperation on renewable energy but some groups criticise the deal because it lacks a sufficient emphasis on the working conditions of sugar cane plantation workers and on the protection of the rainforest.
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