Brazil’s President Lula has always devised national policies and programs to affirm his values and frame priorities. This month, his administration took additional steps in this direction to articulate a national energy transition strategy ahead of the COP29 in Baku, Azerbaijan, hoping to grab the headlines and elevate his stature at the global climate governance gathering.
On 21 August, Lula gathered Finance Minister Fernando Haddad, congressional leaders and Supreme Court justices to launch the “Environmental Transformation Pact,” a broad-reaching effort to facilitate sustainable development and renewable energy projects. The Pact is a government-wide deal to remove the fiscal, judicial and legislative roadblocks to unleashing investment in low-carbon projects nationwide.
Following up on 26 August, Lula attended the National Energy Policy Council meeting, where Mines and Energy Minister Alexandre Silveira unveiled the National Energy Transition Plan (PNTE), which includes a $364mn spending spree to accelerate fossil fuel replacement over the coming decade.
More often than not, the Brazilian government falls short of realizing the headline goals of such ambitious national plans, but the PNTE are different because they reflect a deepening national political consensus that energy is key to Brazilian development and global influence.
It is not a coincidence that Haddad signed a bilateral climate action partnership with US Treasury Secretary Janet Yellen in late July that emphasizes cooperation to develop cutting-edge biofuels, including sustainable aviation fuel (SAF). Additionally, the Lula administration has worked tirelessly to engage the Indian government in similar cooperation over biofuels. As Brazil builds out its low-carbon energy capacity, Lula is working to construct an overarching global alliance for climate action.
Moreover, under Lula, Petrobras – one of the largest energy companies in the world – has set ambitious decarbonization goals for its operations, and plans are in place to produce renewable diesel, green hydrogen and, possibly, offshore wind in the coming decade. Not only is the Lula administration trying to shed carbon from the economy, but its long-term vision holds out the hope of gradually replacing its valuable crude oil exports with renewable energy products and services that could fuel the global energy transition and bring prosperity to millions of Brazilians.
If Lula can wield the PNTE and the Pact to raise investments in clean energy systems in the next 12 months, then Brazil’s hosting of the COP30 next year could become an historic moment in global climate governance, rebooting government priorities and steering investors to fight global warming. It’s Lula’s green dream.
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