{"id":3971,"date":"2022-06-27T11:32:00","date_gmt":"2022-06-27T14:32:00","guid":{"rendered":"http:\/\/ffhc-institucional.local\/produto\/the-challenges-of-brazils-energy-transition\/"},"modified":"2024-07-18T10:59:41","modified_gmt":"2024-07-18T13:59:41","slug":"the-challenges-of-brazils-energy-transition","status":"publish","type":"debate","link":"https:\/\/fundacaofhc.org.br\/en\/debate\/the-challenges-of-brazils-energy-transition\/","title":{"rendered":"The challenges of Brazil\u2019s energy transition"},"content":{"rendered":"<p dir=\"ltr\">Brazil\u2019s energy transition towards a low-carbon economy should seek to maximize the comparative advantages that the country already has in the energy area and seek complementarity with what is being done in Europe, the United States, and other parts of the world instead of copying them.<\/p>\n<p dir=\"ltr\">In addition to contributing to the reduction of global warming under the goals agreed upon at the UN Climate Conferences, the larger objective should be to take advantage of this process as an opportunity to boost economic development, job creation, and poverty reduction in the country.<\/p>\n<p dir=\"ltr\"><iframe loading=\"lazy\" style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"Resumo do webinar - Os desafios da transi\u00e7\u00e3o energ\u00e9tica no Brasil\" src=\"https:\/\/www.youtube.com\/embed\/HIOlobhJCuQ\" width=\"617\" height=\"347\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/p>\n<p dir=\"ltr\">\u201cAs we already have a hyper-clean energy matrix, we must do something different, seeking not the similarity but the complementarity with what is being done in Europe and other parts of the world. We must look at energy transition as an opportunity to achieve what is most relevant for the country today: fighting poverty, creating jobs, and improving economic and social development,\u201d said <strong>civil engineer Jerson Kelman<\/strong>, former director of regulatory agencies ANA (National Water and Sanitation Agency) and ANEEL (National Electric Energy Agency), government-controlled company SABESP, and private company Light.<\/p>\n<p dir=\"ltr\">\u201cBrazil has a well-structured energy system and is the country with the greatest potential to expand its energy matrix in a different way than the rest of the planet. However, we have a serious governance and institutional problem, caused partly by setbacks in the autonomy of regulatory agencies and energy planning. Added to this is the current government\u2019s lack of political commitment to the environmental agenda,\u201d said <strong>engineer David Zylbersztajn<\/strong>, former general director of the National Petroleum Agency (ANP).<\/p>\n<p dir=\"ltr\">Kelman and Zylbersztajn, who have extensive experience in the government and private sector, kicked off the webinar held by the FHC Foundation, whose first panel focused on policy and regulatory challenges.<\/p>\n<p dir=\"ltr\">The second panel, about the challenges of companies, had <strong>Wilson Ferreira Jr., president of Vibra Energia; Clarissa Sadock, president of AES Brasil; and Solange Ribeiro, deputy president of Neoenergia<\/strong>; as debaters.<\/p>\n<h3 dir=\"ltr\"><strong>The focus should be on Amazon protection and reforestation<\/strong><\/h3>\n<p dir=\"ltr\">Unlike most developed countries, or countries with a similar level of development to ours\u2014where the biggest challenge is to replace the use of hydrocarbons in the production of electricity, mainly oil and mineral coal, with renewable sources\u2014, here the focus should be on reducing CO2 emissions resulting from land use: agriculture, livestock, and land use change, that is, deforestation.<\/p>\n<p dir=\"ltr\">According to Kelman, only 18% of greenhouse gas emissions in Brazil, estimated at 2 billion tons of CO2 equivalent per year (4% of the world total), are related to the energy sector. He said, \u201cWhile in the rest of the world, three-quarters of emissions are associated with energy, in Brazil, three-quarters of our emissions are associated with agriculture, livestock, and deforestation, especially in the Amazon.\u201d<\/p>\n<p dir=\"ltr\">\u201cAs we will not reduce our agricultural and livestock production because these are essential sectors for our economy and, in general, they already use adequate techniques, we must focus on the preservation of our forests and the reforestation of degraded areas,\u201d added Mr. Kelman, who is also a Coppe-UFRJ professor.<\/p>\n<p dir=\"ltr\">According to him, deforestation alone, including slash-and-burns and illegal logging without replanting, accounts for almost 50% of the country\u2019s CO2 emissions. \u201cWe have a super clean matrix. We totally wipe out any other country in the world. We\u2019re supposed to be the good guys, but right now, we\u2019re the international villains for the way we\u2019re treating the Amazon. That just cannot continue,\u201d he asserted.<\/p>\n<h3 dir=\"ltr\"><strong>Plan the transition and integrate the various sources available<\/strong><\/h3>\n<p dir=\"ltr\">According to David Zylbersztajn, 48% of Brazilian energy production comes from renewable sources, compared to 14% worldwide and only 11% in OECD countries. \u201cThis is because, between the 1960s and 1970s, Brazil decided to use its water potential for energy production, not for an environmental reason, but for the economic, technological, and availability reasons,\u201d he recalls.<\/p>\n<p dir=\"ltr\">In addition, after the oil shock in the 1970s, Brazil, which produced a lot of sugarcane, bet on ethanol as an alternative fuel to gasoline. \u201cDespite all the problems, we still have the world\u2019s leading biofuel program,\u201d said Mr. Zylbersztajn, who is also a PUC-Rio professor.<\/p>\n<p dir=\"ltr\">More recently, the country advanced in the production of wind and solar energy and is also a significant producer of natural gas, which, despite being a fossil fuel, is less polluting than coal and oil and has a role to play in ensuring national energy security. Brazil will also not fail to exploit its pre-salt oil reserves but should replace their use with renewable sources whenever possible.<\/p>\n<p dir=\"ltr\">\u201cOur biggest challenge is to plan this transition well, integrating the various energy sources available into our national energy planning. To achieve this goal, I think of a triangle in which one of the vertices is energy security, the other is the climate issue, and the third is economic development. The size of each side of this triangle will determine the speed with which we will move towards reducing our emissions and meeting the goals we took on at the UN climate conferences (especially at COP 21 and COP 26),\u201d he explained.<\/p>\n<p dir=\"ltr\">\u201cThere is a lot of money available worldwide for investment in the energy area, and Brazil can benefit from this global effort toward a low-carbon economy. Everything will depend, however, on the country\u2019s effective commitment to reducing its CO2 emissions and who is in charge of the Brazilian energy system. We are living through times of uncertainty, but I am optimistic about Brazil\u2019s role in the global energy transition,\u201d concluded Zylbersztajn.<\/p>\n<h3 dir=\"ltr\"><strong>Diplomacy must act in defense of Brazil\u2019s interests during the transition<\/strong><\/h3>\n<p dir=\"ltr\">According to Jerson Kelman, Brazil needs to do its part in fighting deforestation in the Amazon, the country\u2019s primary source of greenhouse gas emissions; on the other hand, however, it must be tenacious in defending its interests in the ongoing international negotiations, whether in the environmental or energy area. \u201cWe should not accept any policy that increases the cost of our products if it is not associated with a real opportunity to achieve what is fundamental today in Brazil: the fight against poverty and the acceleration of economic development,\u201d he said.<\/p>\n<p dir=\"ltr\">To exemplify, he cited the new rules that will regulate the green hydrogen market, produced from electrolysis, using renewable sources. \u201cWe may be major exporters of liquid hydrogen or ammonia to Europe, but for this to happen, the rules for producing green hydrogen must be appropriate to our energy reality. Itamaraty (Brazil\u2019s Ministry of Foreign Affairs) has a key role in this regard,\u201d said Kelman.<\/p>\n<p dir=\"ltr\">As an example, he argued that the production of this new fuel \u201cadmits different shades of green so that the green hydrogen production plants in the country can be connected directly to our electric grid, which is mostly renewable, instead of requiring a 100% renewable energy source.\u201d<\/p>\n<h3 dir=\"ltr\"><strong>Business leaders show optimism, despite successive crises<\/strong><\/h3>\n<p dir=\"ltr\">\u201cIf Brazil can face the challenges of preserving the Amazon and reforesting degraded areas, we will undoubtedly be an environmental powerhouse with a contribution to its energy matrix like no other country has. To achieve this goal, a public policy that integrates governments, companies, and academia is fundamental,\u201d said engineer Wilson Ferreira Jr., who is a former president of Eletrobr\u00e1s and currently directs Vibra Energia (formerly BR Distribuidora, a subsidiary of Petrobras until 2019, whose privatization was completed in 2021).<\/p>\n<p dir=\"ltr\">Traditionally a company that distributes and markets petroleum-derived fuels, Vibra is seeking to diversify its activities to also become a company that markets biofuels such as green diesel, biomethane, and green fuel for airplanes. For example, it entered into a partnership to open the first green refinery in the state of Roraima, planting palm trees in 120,000 hectares of degraded areas.<\/p>\n<p dir=\"ltr\">\u201cWe created a multi-energy platform to enable consumers to choose the alternatives that make the most sense for them when buying energy, enabling the decarbonization of their emissions,\u201d said Ferreira Jr.<\/p>\n<p dir=\"ltr\">\u201cOur great mission is also to help our customers, who are large industries and businesses, to make their energy transition. They are increasingly demanding of our environmental, social, and corporate (ESG) governance and want to know all the details of our operation,\u201d Sadock said.<\/p>\n<p dir=\"ltr\">According to the president of AES Brasil, a company that operates in the hydroelectric sector in the states of S\u00e3o Paulo, Bahia, Rio Grande do Norte, and Cear\u00e1, it is urgent that the carbon credit market becomes a reality and matures in the world and Brazil. \u201cThis will be the ace in the hole for the preservation of the Amazon, as it can bring many resources to the region in exchange for the preservation of the forest,\u201d he said.<\/p>\n<p dir=\"ltr\">\u201cThe multiple crises we have been through, including the Covid-19 pandemic and now the war in Ukraine, have tested companies to the maximum, but we are managing to overcome the difficulties and move forward,\u201d said Solange Ribeiro, from Neoenergia, a company operating in 18 states and Brazil\u2019s federal district (Bras\u00edlia) in electricity generation, transmission, distribution, and commercialization.<\/p>\n<p dir=\"ltr\">Ribeiro highlighted the need for the country to create good regulatory frameworks to stimulate innovation, create the conditions for infrastructure investments and transform Brazil into a country that exports renewable energy. \u201cThe country needs to take advantage of timing and regulate the renewable energy market as other countries have, such as the United States, Australia, and China,\u201d he said.<\/p>\n<p dir=\"ltr\">According to the deputy president of Neoenergia, the path to be followed is that of the 3Ds: decentralization, digitalization, and decarbonization. \u201cSoon, electricity will be delivered to the consumer in an increasingly customized way, according to their needs, using networks in a better way,\u201d he explained.<\/p>\n<p dir=\"ltr\">\n<p dir=\"ltr\"><em>Ot\u00e1vio Dias is the content editor at Funda\u00e7\u00e3o FHC. He is a political and international affairs journalist, former correspondent of Folha de S\u00e3o Paulo in London, and former editor of the estadao.com.br website.\u00a0<\/em><\/p>\n<p dir=\"ltr\"><em>Portuguese to English translation by Melissa Harkin, CT and Todd Harkin \u2013 <a href=\"https:\/\/harkintranslations.com\/portugu%C3%AAs\" target=\"_blank\" rel=\"noopener\"><strong>Harkin Translations<\/strong><\/a>.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Brazil\u2019s energy transition towards a low-carbon economy should seek to maximize the comparative advantages that the country already has in the energy area and seek complementarity with what is being done in Europe, the United States, and other parts of the world instead of copying them. In addition to contributing to the reduction of global&#8230;<\/p>\n","protected":false},"featured_media":6694,"template":"","tags":[283],"plataforma-democratica":[],"tema":[101],"tipo-debate":[],"class_list":["post-3971","debate","type-debate","status-publish","has-post-thumbnail","hentry","tag-politics","tema-desenvolvimento-e-sustentabilidade"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.2 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>The challenges of Brazil\u2019s energy transition | Funda\u00e7\u00e3o FHC<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/fundacaofhc.org.br\/en\/debate\/the-challenges-of-brazils-energy-transition\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The challenges of Brazil\u2019s energy transition | Funda\u00e7\u00e3o FHC\" \/>\n<meta property=\"og:description\" content=\"Brazil\u2019s energy transition towards a low-carbon economy should seek to maximize the comparative advantages that the country already has in the energy area and seek complementarity with what is being done in Europe, the United States, and other parts of the world instead of copying them. 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