Brazil Harnesses Natural Capital to Fuel Green Future
May 8, 2024
auto_awesome
Brazil's potential in green hydrogen production, EV adoption, and Amazon forest's role in carbon markets are discussed by BloombergNEF's James Ellis and Vinicius Nunes. Brazil's clean energy goals, investments, and influence in the global energy transition sector are highlighted, along with insights on renewable energy policies, Amazon preservation, carbon markets, and sustainable business models.
Brazil is focusing on transitioning to renewable energy sources to become a clean energy powerhouse.
The country's competitive wind capacity enables low-cost electricity and positions it for green hydrogen production.
Deep dives
Renewable Energy Transition in Brazil
Brazil is focusing on transitioning to renewable energy sources with ambitions to grow the share of renewable energy. The country's electricity is already 90% clean, utilizing large hydro assets alongside wind and solar generation. Foreign direct investment from European utilities is supporting the growth of renewable energy projects in Brazil.
Wind and Solar Energy Growth
Brazil has seen significant growth in wind and solar energy sectors in recent years, with auctions driving renewable energy generation. Small-scale solar projects have thrived due to legislation supporting full net metering. Brazil ranked third globally in wind installations and attracted substantial investments.
Green Hydrogen Potential in Brazil
Brazil's abundant wind resources contribute to its potential in green hydrogen production. The country's competitive wind capacity enables low-cost electricity, translating to low hydrogen production costs. With a focus on decarbonization and domestic demand, Brazil aims to capitalize on green hydrogen production.
Brazil's Industrial Advancement
Brazil is shifting towards industrialization and the production of low-carbon goods leveraging its renewable energy resources. The country's strengths in cheap and abundant renewable energy position it to produce low-carbon products such as EVs and batteries more efficiently. The alignment of global energy transition priorities with Brazil's resources offers opportunities for economic growth and job creation.
As the host of this year’s G-20 meetings and next year’s COP30 climate conference, Brazil is in the spotlight. Ranked sixth globally for energy transition investment in 2023, and third for both wind and solar capacity additions, Brazil is aiming to use its vast array of natural resources to ensure its future as a clean energy powerhouse.
On today’s show, Dana is joined by BloombergNEF’s head of Latin America research, James Ellis, and analyst, Vinicius Nunes. They discuss Brazil’s potential for green hydrogen production, growing electric vehicle (EV) adoption in a market that is already dominated by vehicles powered by biofuels, and the role of the Amazon forest in voluntary carbon markets.
Complementary BNEF research on the trends driving the transition to a lower-carbon economy can be found at BNEF<GO> on the Bloomberg Terminal or on bnef.com