National Energy Transition Policy

For the first time, Brazil has a National Energy Transition Policy (PNTE), established in August 2024, setting guidelines that shape the country’s energy strategy to confront climate change. The chosen path combines efforts to reduce greenhouse gas (GHG) emissions with measures to strengthen economic development, job creation, and social inclusion.

Brazil is expected to attract R$ 2 trillion in investments over the next 10 years in sustainable energy infrastructure, generating three million jobs and revitalizing industry, with energy serving as a driving force for the nation’s sustainable development.

In this new green economy, investments will focus on wind, solar, hydropower, biomass, biodiesel, biomethane, ethanol, green diesel, carbon capture and storage, sustainable aviation fuel, and low-carbon hydrogen.

The PNTE was established by President Luiz Inácio Lula da Silva during a meeting of the National Energy Policy Council (CNPE) on August 27, 2024, when he approved a resolution presented by the body chaired by the Minister of Mines and Energy, Alexandre Silveira.

According to its framework, the PNTE aims to “guide national efforts toward transforming Brazil’s energy matrix into a low-carbon structure, contributing to the achievement of net greenhouse gas emissions neutrality in the country.”

The initiative is designed as “a mechanism to support the integration and coordination of federal government policies and actions, in alignment with subnational entities, and in dialogue with civil society and the productive sector.”

One of the policy’s highlights is the creation of the National Energy Transition Forum (Fonte) —a unique platform for debate and recommendations to the CNPE, ensuring that Brazil’s energy transition process is fair, inclusive, and democratic. Combating energy poverty is a central element of this approach.

The participating entities have already been indicated, and the definition of the representative of each one is in progress, making Fonte one of the largest forums for debate between the government, the productive sector and representatives of civil society in the country.

The PNTE aligns with “the objectives of the national energy policy for the rational use of energy sources in accordance with international climate commitments assumed by the country.” It also incorporates “other public policy objectives, including initiatives and strategies to enable the ecological transformation of the Brazilian economy, strengthen production chains, add value domestically, and advance climate change mitigation and adaptation.”

GUIDELINES

• Expand Brazil’s capacity to attract investments by strengthening energy transition supply chains

• Establish a solid foundation for dialogue with society and broaden social participation

• Influence the global energy sector’s development, creating opportunities for Brazil’s economic and geopolitical integration

• Implement measures for climate change mitigation and adaptation in the energy sector, in alignment with the National Climate Change Plan

• Safeguard national energy security

• Ensure universal access to energy

• Enhance competitiveness in the energy sector to deliver affordable prices

• Reduce poverty and energy inequality while assessing costs and investment incentives to guarantee a fair and inclusive energy transition

• Coordinate with other federal public and sectoral policies

• Strengthen alignment between energy policy actions at federal, state, municipal, and district levels

• Recognize regional diversity in designing and implementing energy transition programs and initiatives

• Foster transparency, social participation, and diversity in formulating and executing energy transition policies

• Support the identification and promotion of priority areas for research, development, technological and productive densification, innovation, and training for the energy transition

• Incorporate contributions from international cooperation into the energy transition, while safeguarding Brazil’s sovereign interests

DEFINITIONS

• Energy Transition – The process of transforming energy infrastructure, production, and consumption across different sectors, aimed at contributing to the country’s net-zero GHG emissions goal.

• Fair and Inclusive Energy Transition – A transition committed to promoting equity and social participation, while minimizing negative impacts on communities, workers, companies, and social groups vulnerable to changes in the energy system. It maximizes opportunities for socioeconomic development, enhances the competitiveness of the productive sector, and combats inequality and poverty at the international, regional, and local levels.

• Energy Equity – The active pursuit of universal access to high-quality, environmentally sustainable energy services, ensuring security of supply at affordable prices.

• Energy Poverty – A condition in which households or communities lack access to a basic set of energy services or are unable to fully meet their energy needs.

NUMBERS 

• R$ 2 trillion expected in investments

• 3 million jobs to be created

DATES

• 02/02/2023 – Creation of the National Secretariat for Energy Transition, announced by Minister Alexandre Silveira at his inauguration

• 04/10/2024 – President Lula declares, in his 100-day review: “Our strategic infrastructure investment program will have six pillars: transportation; social infrastructure; digital inclusion and connectivity; urban infrastructure; water for all; and energy transition.”

• August 2024 – Approval of the PNTE by the CNPE at a meeting led by President Lula and coordinated by Minister Alexandre Silveira

• October 2024 – Establishment of the Fonte Executive Committee and definition of criteria for the appointment of members to the Fonte Plenary

• January - April 2025 – Public Selection Process for civil society representatives to join the Fonte Plenary for the 2025/2026 biennium (Call for Applications No. 1/2025)

• November 2024 - April 2025 – Submission and review of information from institutions and associations in the productive sector, along with nominations from federal, state, and municipal governments