Brazil’s opportunity to lead the global dialogue on energy and climate

Brazil can build on its diplomatic strengths to facilitate global cooperation and partnerships for clean energy. The country has a long history of fostering international collaboration, notably the 1992 Rio Summit, which delivered a new blueprint for international action on environmental and development issues including the United Nations Framework Convention on Climate Change. Today, Brazil's low-emissions energy sector and large resource base provide the right conditions for developing industrial clusters alongside other countries, which will be key for transitions to net zero emissions. The country is already taking steps in this direction, working with the United States to decarbonise the steel sector, with the European Union to start low-emissions hydrogen manufacturing, and with China to produce electric vehicles and batteries.

The development of sustainable fuels is one of several areas in which the global energy and climate dialogue could benefit from Brazil's leadership. In the IEA's Net Zero Emissions by 2050 Scenario, demand for sustainable fuels - such as biofuels, biogases and low-emissions hydrogen - doubles by 2030 and then nearly doubles again by 2050. Sustainable fuels are important options for the transition away from fossil fuels in the transport and industrial sectors, serving as a complementary measure to electrification and energy efficiency. ​

Ramping up clean energy investment in emerging and developing economies is essential for ensuring secure, fair and affordable net zero transitions. To meet rising energy needs in ways that align with the Paris Agreement, annual investment in clean energy will need to more than triple in these economies by the early 2030s. However, limited fiscal capacity means there is little room for incentives that go beyond target-setting. Sustainable finance can help reduce the high cost of capital and usher in much needed investment. Brazil's collaboration with the World Bank and the Inter-American Development Bank on a new Sovereign Sustainable Bond allowed it to structure financing tailored to its specific needs and goals.

Yet another key task is ensuring that the transition to clean energy is people-centred and addresses the needs of the most vulnerable. Brazil has implemented programmes with this aim, like PRONATEC, which supported forest product value chains and combated illiteracy, or the Low-Carbon Agriculture Program, which includes support for smallholder farmers and bioenergy production from agricultural waste. At the COP28 climate change conference in Dubai in 2023, it unveiled an Ecological Transformation Plan with the goal of fostering economic development based on environmental sustainability, employment and productivity, and social justice.

Solutions to energy and climate needs will depend on both domestic and international action. Brazil is keenly aware of the imperative of moving faster. It has suffered in 2024 from devastating floods in the state of Rio Grande do Sul and fires in the Pantanal region. The country is working on many fronts to improve climate prospects, with important implications for its international agenda. As countries around the world seek to reach international energy and climate goals, Brazil has valuable experiences, expertise and ideas for expanding the global clean energy economy.