Brazil Sets 60-Day Deadline for National Energy Transition Strategy Post-COP30
Following COP30, Brazil's government orders a 60-day deadline to draft an energy transition proposal focused on reducing fossil fuel dependency and establishing new climate financing frameworks.
- • President Lula orders ministries to draft Brazil's energy transition plan within 60 days following COP30.
- • The new proposal aims to reduce fossil fuel reliance and guide the National Energy Policy Council.
- • An Energy Transition Fund will be financed by revenues from oil and gas exploration.
- • The government establishes policies for greenhouse gas emissions trading and improved access to the National Interconnected System (SIN).
Key details
Following the COP30 climate conference in Belém, Brazil is ramping up efforts to define a clear strategy for its energy transition. Despite COP30 approving a text to triple climate funding, no agreement was reached on ending fossil fuel use. Responding to this, President Luiz Inácio Lula da Silva has instructed key ministries to develop a comprehensive energy transition proposal within 60 days. This directive involves the Ministries of Mines and Energy, Finance, Environment, and the Civil House devising guidelines for the National Energy Policy Council (CNPE) to steer Brazil’s move away from fossil fuels towards renewable energy.
The plan includes establishing financing mechanisms through a new Energy Transition Fund, which will draw revenue from ongoing oil and gas exploration. However, this move underscores existing tensions within the government, as fossil fuel activities remain integral to Brazil’s development strategy. Lula has acknowledged the continued utilization of oil resources until conditions favor a full transition, highlighting a complex internal debate with divergent views on fossil fuel exploration versus sustainable development.
Simultaneously, the government has introduced significant policies targeting the energy sector’s modernization and climate goals. A decree has established a Technical Committee dedicated to greenhouse gas emissions trading, enhancing regulatory oversight. Additionally, a new policy for accessing the National Interconnected System (SIN) was implemented, featuring auctions conducted by the National System Operator (ONS) to improve energy distribution.
The Ministry of Mines and Energy (MME) also launched a consultation on the 2026 budget for the Luz para Todos program, which aims to broaden electricity access nationwide. Meanwhile, a recent court ruling enabling the alienation of Cemig's small hydropower plants (PCHs) presents opportunities for investment and market activity.
These developments reflect Brazil’s balancing act: pushing forward on climate commitments while managing economic realities tied to fossil fuels. At COP30, Brazil’s proposed roadmap for energy transition garnered backing from about 80 countries but revealed global divergences on fossil fuel policies. Critics have raised environmental concerns about recent Petrobras approvals for deep-sea drilling in sensitive ecosystems, accentuating contradictions in Brazil’s climate posture.
President Lula’s 60-day mandate marks a pivotal moment in structuring Brazil’s energy future, seeking a strategic framework to reconcile climate ambitions with economic and energy security imperatives.
This article was synthesized and translated from native language sources to provide English-speaking readers with local perspectives.