The Brazilian president takled the quesion of climate change during talks with officials in Zambia.
The world will need to drastically reduce its emissions without compromising the right of the poor countries to growth, he said.
“Having a fertile land puts Zambia on the forefront of another revolution in Africa; it is the biofuel revolution,” said the Brazilian leader.
It follows on from a visit to Tanzania where he signed an agreement on biofuels between the two countries.
Lula said he would encourage Brazilians to invest in Tanzania and that his country was willing to transfer technology so that Tanzania could develop its own biofuel sector.
Tanzanian president Jakaya Kikwete said the country had huge potential in the area of biofuels since the sugarcane is currently refined only for consumption.
Brazil is the largest producer of sugarcane ethanol fuel, which was recently designated as an advanced biofuel by the US Environmental Protection Agency.
The fact that biofuels are largely renewable has made them increasingly attractive in a climate of spiralling oil prices and environmental concerns.
Bioethanol requires vast stretches of land in order to generate volumes of energy for export. So far this has been a main focus for Africa.
The Brazilian President also pledged to help Tanzania develop its port and hinted that Brazil was considering scrapping the 191 million euros owed to his country.
Tanzania borrowed 49 million dollars at the beginning of the 1980s for the construction of a road which ballooned to 191 million euros with accumulated interest.
Lula’s next stop on his African tour will be South Africa where he will attend the World Cup final on Sunday evening between Spain and the Netherlands.
Brazil is scheduled to host the next tournament in 2014. It will be the second time the country has hosted the competition, the first being the 1950 Fifa World Cup.