Brazil expects R2 trillion in energy transition

Brazil launched its national policy for energy transition, expecting to attract R2 trillion ($364.2bn) in investments in the area over the next 10 years, according to energy minister Alexandre Silveira.

The policy establishes guidelines for the country's energy transition, Silveira said, adding that Brazil will be a leader of the green economy. "[The policy] involves wind, solar, hydro, biomass, biodiesel, ethanol, green diesel, carbon capture and storage, sustainable aviation fuel, green hydrogen," he said. "It is an opportunity to boost local production."

The two-pronged policy includes the national energy transition plan, which will work alongside other government initiatives, such as the growth acceleration program, the climate plan, new industry Brazil and the pact for ecological transformation. It will also count with the support of the International Energy Agency, Brazil's development bank Bndes, energy research firm Epe and the Getulio Vargas Foundation research institute.

The national energy transition plan will focus on getting support from industry participants in the transportation, electrical, mineral and oil and natural gas sectors, and creating legal and regulatory frameworks, to "combat energy poverty and inequalities and create an attractive environment for investments."

The second prong is the national energy transition forum, in which public and private sector participants will get a chance to debate and contribute to the policy.

Brazil's national energy policy council CNPE approved the plan in a meeting on Monday with President Luiz Inacio Lula da Silva and ministers such as Silveira, environmental minister Marina Silva and finance minister Fernando Haddad.

"We are looking to the future," Silveira said. "The energy transition must be fair, inclusive and balanced."

By Lucas Parolin