{"id":20570,"date":"2024-09-03T15:01:50","date_gmt":"2024-09-03T18:01:50","guid":{"rendered":"https:\/\/fundacaofhc.org.br\/?post_type=debate&p=20570"},"modified":"2024-11-12T15:12:30","modified_gmt":"2024-11-12T18:12:30","slug":"environment-and-development-seizing-the-opportunities-of-decarbonization","status":"publish","type":"debate","link":"https:\/\/fundacaofhc.org.br\/en\/debate\/environment-and-development-seizing-the-opportunities-of-decarbonization\/","title":{"rendered":"Environment and Development: Seizing the opportunities of decarbonization"},"content":{"rendered":"\n

Brazil\u2019s climate transition comes with its own unique challenges and specific characteristics, presenting dilemmas different from those faced by other countries. The nation must resist importing problems that aren\u2019t relevant to its context or copying models and solutions that don\u2019t align with its needs. <\/p>\n\n\n\n

To fully realize its potential as a global leader in this critical process, the government at all levels, the legislature, the private sector, universities, science and technology centers, and civil society must engage in deeper discussions about a future where development and sustainability are intertwined. Achieving this vision will require moving beyond the current polarization surrounding environmental issues.<\/p>\n\n\n\n

These were the key takeaways from the debate that kicked off a series of meetings on the environment and development, through which the Funda\u00e7\u00e3o FHC aims to contribute to preparations for the United Nations Conference on Climate Change (COP-30), set to be held in Bel\u00e9m in November 2025.<\/p>\n\n\n\n

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Jos\u00e9 Roberto Mendon\u00e7a de Barros, Izabella Teixeira, Ricardo Mussa, and Luciana Costa in a debate at the Funda\u00e7\u00e3o FHC auditorium \u2013 Photo: Vinicius Doti<\/strong><\/figcaption><\/figure>\n\n\n\n

\u201cWe must address climate, energy, mineral, and agricultural security\u2014key aspects of the transition that demand commitment from both the public and private sectors, as well as from society at large,\u201d said Izabella Teixeira, former Minister of the Environment and advisor to the Funda\u00e7\u00e3o FHC. \u201cIt is essential for Brazil to engage in a broad, integrated discussion about its future in a world facing extreme challenges\u2014it\u2019s unavoidable. This conversation must rise above political and ideological polarization.\u201d<\/p>\n\n\n\n

Ms. Teixeira emphasized the need to tackle two parallel challenges: mitigating the impacts of global warming, which are already part of everyday life in Brazil and across the globe, and implementing decarbonization initiatives in various industries. \u201cBrazil must move beyond environmental guesswork and engage in serious discussions about how environmental issues affect economic sectors, placing them at the center of investment decisions,\u201d she stressed.<\/p>\n\n\n\n

Economist and consultant Mr. Jos\u00e9 Roberto Mendon\u00e7a de Barros highlighted that Brazil\u2019s current budgetary constraints make it unrealistic to expect the climate transition to be financed primarily through Treasury funds or subsidies. \u201cA well-developed, efficient carbon credit market is crucial for financing major projects like large-scale green hydrogen production or offshore renewable energy plants. The international carbon credit market should play a role in funding Brazil\u2019s transition in exchange for preserving the Amazon. Unfortunately, this isn\u2019t on the immediate horizon,\u201d he explained.<\/p>\n\n\n\n

Mr. Mendon\u00e7a de Barros, founder of MB Associados, noted that while Brazil has made steady progress in decarbonizing important production processes, such as green cement, the country still faces two significant challenges. The first is the contradiction of being both a \u201cmember of OPEC\u201d (Organization of Petroleum Exporting Countries) and the host of COP-30. The second is the lack of direction in energy sector governance, as Brazil\u2019s energy matrix increasingly relies on renewables, yet energy costs for consumers remain high.<\/p>\n\n\n\n

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Debate on Environment and Development at the Funda\u00e7\u00e3o FHC – Photo: Vinicius Doti<\/strong><\/figcaption><\/figure>\n\n\n\n

\u201cBrazil has been undergoing an energy transition for several decades, and if the world were in the same position as Brazil today, we wouldn\u2019t be discussing global warming in the same terms. The Brazilian energy sector is responsible for only 18% of the country\u2019s carbon emissions, whereas globally, this figure stands between 65% and 70%. We shouldn\u2019t import problems that aren\u2019t ours,\u201d said Luciana Costa, director of Infrastructure, Energy Transition, and Climate Change at the BNDES.<\/p>\n\n\n\n

Ms. Costa emphasized that Brazil must \u201cclosely examine\u201d projects in key areas such as freight railroads, urban mobility (including electric and hybrid buses), and basic sanitation to further reduce its carbon footprint and protect the environment. \u201cBrazil entered the transition with significant gaps in infrastructure, logistics, public transportation, and sanitation\u2014areas with huge decarbonization potential. In 2023, the BNDES allocated R$70 billion to projects in these sectors,\u201d she said.<\/p>\n\n\n\n

\u201cThere\u2019s no doubt that Brazil is on the side of solving climate change challenges, but we need proper legislation and public policies to attract more foreign investment and ensure the viability of decarbonization projects. Brazil also has a branding issue; few know about our positive contributions, while our negative aspects are widely publicized and harm our global image,\u201d said Ricardo Mussa, CEO of Ra\u00edzen, a Brazilian renewable energy company.<\/p>\n\n\n\n

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