- Brazil generates 89% of its electricity from renewables, creating green jobs and a strong clean-energy model for the Global South.
- Policies and long-term planning drive decarbonization, but fossil fuels and land-use emissions remain key challenges.
Brazil has emerged as a global leader in renewable energy, with clean sources supplying about 89% of the country’s electricity, according to a new report by the International Renewable Energy Agency (IRENA).
The report credits Brazil’s extensive hydropower capacity and expertise in biofuels, particularly ethanol, for its strong renewable profile. Integration of these sources into the national grid has created green jobs and strengthened domestic supply chains.
IRENA highlights Brazil’s regulatory approach, which relies on market competition and strategic tax incentives rather than direct price controls, as a key factor in promoting ethanol use and decarbonising the transport sector. Long-term policy certainty has also encouraged investment and innovation in sustainable fuel technologies.
Despite its achievements, Brazil faces challenges. The country remains a major oil producer, drawing on pre-salt reserves, which creates tension between fossil fuel production and renewable energy targets. Emissions from land use and deforestation exceed those from the energy sector, underscoring the need for integrated environmental and energy strategies.
Brazil’s international role will grow as it hosts COP30 in 2025 and co-hosts the Global Coalition for Energy Planning with IRENA. These platforms aim to attract private investment and demonstrate how long-term energy planning can reduce financial risk.
The report concludes that Brazil can either follow a conventional energy path or lead a just energy transition. With consistent policies, sustainable land management, and international cooperation, Brazil can decarbonise its economy while preserving its ecological heritage and providing a model for other nations.