Brazilian politicians, judges to advance green agenda

Representatives from Brazil's three branches of government have pledged to work together to advance the country's green agenda by approving legislation, expanding funding and guaranteeing enforcement related to the environment and the energy transition.

Representatives from the supreme court (STF) and congress, together with President Luiz Inacio Lula da Silva and members of his cabinet signed an agreement on Wednesday aimed at reinforcing the country's commitment to protecting the environment.

On the legislative front, lower house speaker Arthur Lira and senate President Rodrigo Pacheco promised to give priority to legislation that will advance the transition to low-carbon energy. This includes legislation that will create a regulated carbon market, a bill regulating offshore wind projects as well as a proposal that will create blend mandates for advanced biofuels.

Pacheco plans to hold a vote for the bill that will create a carbon market in the first half of September, a spokesperson for senator Leila Barros, who is elaborating the text, told Argus. Barros has made significant progress on the new draft of the bill, but is finetuning the final text to address demands from specific sectors of the economy, the spokesperson said.

The senate is also finalizing its analysis of the fuels of the future bill, which will create blend mandates for hydro-treated vegetable oil (HVO) and sustainable aviation fuel (SAF) as well as clear the way to increase the mandatory ethanol and biodiesel blends in commercial fuels. Senator Veneziano Vital do Rego presented a draft of the legislation on 20 August and is working to hold a vote in early September on the bill, which passed the lower house in March.

Legislation for offshore wind has also made progress in the senate, but a proposal has not yet been presented. A draft of the bill was approved by the lower house last year, but included amendments that would expand subsidies for fossil fuels, potentially raising electricity prices for consumers.

As part of the agreement, the executive branch has also promised to make further progress towards guaranteeing financing for energy transition projects. Likewise, the judiciary has agreed to give priority to cases that involve environmental, climate and land ownership.

Lula stressed that the agreement among the three branches of the government shows Brazil's willingness to take a leading role to protect that environment as it prepares to host the Cop 30 meeting in Para state in 2025.