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IEA (2025), Brazil 2025, IEA, Paris https://www.iea.org/reports/brazil-2025, Licence: CC BY 4.0
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Policy recommendations for Brazil
Energy and climate policy landscape
1. Ensure that PLANTE serves as a coherent, overarching plan for the national energy transition that achieves a sustainable and balanced economic and social transformation for Brazil.
2. Review all government spending across energy sources to realign in support of PLANTE.
People-centred clean energy transitions
3. Introduce an integrated people-centred framework for the energy transition.
4. Implement whole-of-government energy transition workforce mapping and planning to ensure opportunities in local communities are optimised.1
5. Integrate electricity into the portfolio of options for clean cooking access for families.
Investment and financing
6. Pursue the intended establishment of a carbon pricing instrument to orient investment while using revenues to mitigate adverse impacts on low-income groups and maintain competitiveness.
7. Establish a national investment fund to direct a fixed share of the government oil revenues to finance the energy transition, including plans to move up the value chain in new industries.
End-use sectors
8. Implement mandatory energy audits for companies above a certain level of energy consumption to support the implementation of energy efficiency measures and energy management systems.
9. Promote a more ambitious approach on minimum energy performance standards for energy-related products with a high impact on industrial energy consumption and relevance for the energy transition.
10. Seize the opportunities for domestic manufacturing and expand the role of flex-fuel hybrids and electric vehicles in the transport sector.
11. Create stronger demand for less carbon-intensive heavy-duty vehicles.
12. Encourage building owners to pursue voluntary energy audits on existing buildings, starting with larger buildings.
13. Integrate energy efficiency and thermal comfort standards into social housing programmes.
Electricity
14. Undertake a comprehensive review of institutional, regulatory and market frameworks to ensure a secure, affordable and future-proof power system that recognises the contributions and capabilities of all actors in a diversified system.
15. Incentivise all forms of power system flexibility resources, including existing hydropower and demand-side response, to integrate large shares of wind and solar photovoltaics (PV) in a secure and efficient way.
16. Reform the electricity retail market to reflect correct and fair pricing of electricity and use of networks, and to jump-start demand response.
17. Reform the distributed PV net metering scheme to address increasing inequalities and serious risks for power system efficiency and stability.
Oil and gas
18. Consider more targeted and regionally sensitive upstream policies to incentivise broader participation in exploration and production, and to develop oil and gas in a balanced way for Brazilian society.
19. Incentivise oil and gas companies to allocate a higher percentage of their annual investments into research, development and demonstration (RD&D), more focused on low-carbon technologies.
20. Simplify the institutional framework to allow the operational stock requirement to address external vulnerabilities that come from import dependency for fuels.
21. Formalise a national emergency response plan for fuel supply crises.
22. Accelerate the implementation of natural gas market reforms to improve price discovery for consumers.
23. Clarify the role that natural gas is expected to play in the energy transition.
Sustainable fuels
24. Finalise an assessment of the RenovaBio programme and provide public information on the results, including on sustainability and land-use change implications.
25. Promote the development of advanced biorefineries, leveraging existing strengths in biofuels production and opportunities for the bioeconomy.
26. Scale up low-emissions hydrogen by stimulating domestic demand creation and export potential, while developing hydrogen hubs to optimise infrastructure needs.
27. Develop infrastructure around clusters that support localised market development of a range of sustainable fuels and products, and expand into low-carbon corridors.
Data and statistics
28. Develop a strategy to guide the evolution of the energy data system in the mid-term (five years).
29. Further strengthen the institutional set-up for the provision of official energy statistics.
30. Adapt the development of policy-relevant data to a rapidly evolving energy landscape.