Could Brazil's leadership help develop sustainable fuels?

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.

How much renewable power does Brazil have?

In total, Brazil had an operating renewable capacity of 194 gigawatts as of end of that year. Most of Brazil’s renewable capacity comes from its hydropower plants, which were responsible for roughly 63 percent of the country’s electricity production in 2022.

Can Brazil transition to net zero emissions?

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.

Does Brazil need ethanol blending?

More than 90% of the demand for energy in the country’s transport sector comes from road transport, this compares to a global average of around 75%. Ethanol blending mandates began after the 1973 oil crisis with the Pró Álcool programme, which aimed to reduce oil imports by leveraging Brazil’s agricultural strength.

Does Brazil need a sustainable bond?

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.

What policies have been successful in Brazil?

Past policies that were highlighted as successes include the development of a competitive and dynamic natural gas market in Brazil and RenovaBio, Brazil’s federal biofuel policy that aims to reduce carbon emissions through the use of tradeable carbon credits.