As part of the initiative, the company will set up a wind farm in the city of Xangri-lá in Rio Grande do Sul, the southernmost state in Brazil.

The proposed wind power plant will employ nine wind power turbine units and is expected to generate around 85,000MW of electricity annually, and will become operational by the end of September 2014.

HAB has established a new subsidiary, Honda Energy do Brasil, specialized in wind power generation business in order to evolve wind power generation business in the country.

The new subsidiary will monitor the management and operation of all areas related to Honda’s wind power generation business in the country.

Commenting on the new subsidiary, Honda Energy do Brasil president Carlos Eigi said that Honda has been cooperating with the local community in minimizing the environmental footprint of its production activities.

"Wind power generation has proven to be very effective in reducing CO2 emissions. Through the utilization of renewable energy, Honda will continue to be proactive in pursuing environmental conservation activities in Brazil," added Eigi.

Honda is aiming to reduce CO2 emissions from its global products by 30% by the end of 2020 compared to year 2000 levels. In order to meet its goals, Honda has been strengthening its initiatives on a global basis to reduce CO2 emissions from all business activities, including production and the supply chain.