Brazil has a unique trajectory in the green transformation, initially driven by the search for energy security in the 1970s, with emphasis on the Alcohol Program, which replaced fossil fuels with ethanol. From the 2000s onward, the focus shifted to tackling climate change, with policies aimed at sources such as wind energy. Today, the country stands out globally with 93% of its electricity matrix coming from renewable sources.

Despite these advances, Brazil faces major challenges, especially related to emissions from land-use change and deforestation, which still represent the largest share of national emissions. At the same time, there are significant opportunities, such as the development of the bioeconomy in the Amazon, the expansion of the carbon market, and leveraging the country’s natural advantages in biodiversity and renewable sources. Initiatives such as the Amazon Fund and international pressures reinforce the need for coordinated action.

The role of the State has been central in promoting the transition, with emphasis on the recent Ecological Transformation Plan, which foresees emission reductions, green job creation, and better income distribution. The creation of a regulated carbon market and investments in green hydrogen also show progress toward consolidating a low-carbon economy. The main lesson is that the success of the transformation depends on the articulation between public policies, technological innovation, and alignment between national and global governance.

São Paulo School of Business Administration – Fundação Getulio Vargas (FGV EAESP)

Researcher: José A. Puppim de Oliveira

Important links about the Workshop and presentations:

Promoting green structural transformation in the Global South
Fostering clean transitions and green industrialization in the Global South
Patterns and drivers of global inequality

Learn more about the project.