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Energy and Climate Change in Brazil

October 31, 2009

This working paper explores energy and climate issues in Brazil and elaborates on recommendations that resulted from AS/COA Energy Action Group meetings with leading public and private sector representatives in São Paulo and Rio de Janeiro on June 9 and 10, 2009. Energy and Climate Change in Brazil begins with an overview of Brazil’s energy matrix, including the major oil and gas discoveries and the growing ethanol industry. It also looks at ethanol use in the United States and the collaboration between Brazil and the United States on biofuels research and development, including assistance to third countries. Moving to climate change, the paper then discusses Brazil’s climate profile, with a specific focus on deforestation. A review of Brazil’s engagement in global climate change negotiations points to a shift in Brazil’s position. Finally, the paper makes three recommendations:

  • Biofuels must be part of a cleaner energy matrix, but integrating them more fully into the world’s energy mix will require the creation of a truly global market.
  • Brazil and the United States are essential to helping the world meet growing energy demand as well as transition to cleaner energy sources, and the two countries should increase collaboration on energy and climate issues.
  • Brazil has an important profile in energy and climate matters and should play a bigger role in these issues internationally. Maintaining an open investment climate for energy will be essential.

The Energy Action Group meetings in Brazil and this working paper are part of AS/COA’s two-year strategy on hemispheric energy issues. Throughout 2009 and 2010, the EAG will work to develop recommendations for hemispheric leaders on improving energy and climate cooperation in the Americas.