How can Brazilian industry use the energy transition to its advantage?

The seminar promoted by ‘Estadão’ this Friday 20th, at 9am, will discuss how to unite industrial policy and sustainability policy

Brazil has a more than privileged position in the world in this sense. energy transition. According to the data of National Electricity Agency (Aneel)approximately 85% of Brazil’s electricity grid is now considered clean energy (hydroelectric, wind, solar AND biomass). And the potential for developing renewable generation sources is immense.

This is a very different position from that found in other countries and an important differentiator when it comes to, for example, attracting investment, at a time when climate issues are becoming an increasingly decisive point in the decision-making processes of companies and governments. Despite this position, there is still a long way to go in this sense, especially when it comes to regulation, legal certainty and infrastructure, for example, if the country really wants to become competitive in this sector.

How to make this image become reality? To discuss this scenario, the State promotes this Friday 20, in the main hall of Fiespin São Paulo, the seminar “Neoindustrialization supported by the energy transition: how to unite industrial policy and sustainability policy”. The event has the institutional support of Fiesp, Ciesp, Firjan and CNI. Registrations are open HereThe event, starting at 9 am, will be broadcast live on TV State.

For Rogério Zampronha, CEO of Prumo Logistics and one of the participants in the event, Brazil’s renewable energy, with the winds and the sun in the country, is one of the best in the world. “So the country should have the cheapest renewable energy in the world. In addition, it also has hydroelectricity, we have a lot of water. At least until now,” he said. “In this way Brazil can also win the biomass race. From it you can also produce hydrogen and biogas, which is the natural substitute for natural gas. In addition, forests in Brazil grow much faster than in other countries. countries. We have three soybean crops a year.

The problem, he says, is that we have been left behind in the race to regulate. “In Western European countries, for example, we have moved much faster. Perhaps there is more awareness there than here. But ours will follow, because Brazil, for example, will no longer be able to export steel to the extent that it exports today to the European Union if it does not achieve certain levels of emission reduction, which will be 30% in steel mills,” he says.

“And this is just one example. If you don’t regulate here, the foreign market starts to impose barriers, both tariffs and regulations, for Brazilian products,” he says. “We have to adapt to this external regulation. Ideally, internal regulation should happen quickly, as quickly as it happened, for example, in Chile.”

The risk of being left behind

Rodrigo Pupo, a lawyer specializing in international trade and “green industrialization,” Brazil must immediately enter the decarbonization policy, or it will be left behind. And it must also closely monitor what has been done in other countries, to denounce and prevent abuses, since policies that involve subsidies can end up being used to create protectionism and unfair trade.

“Brazil has an immediate opportunity, which it cannot miss. It is now, at this moment. The country cannot delay,” he says. “We must know how to exploit and attract investment as a national strategy. It is not a government strategy, it is a state strategy, to give stability to the productive sector. And every real that Brazil invests in subsidies must be used much better, better used than the American dollar or the European euro.”

One of the new areas related to the energy transition in which Brazil can stand out is sustainable aviation fuels (SAF). Brazil’s familiarity with biofuels makes the country considered a major hub for SAF production. Although Brazilian projects are still in their early stages, they are expected to peak by the end of this decade, according to Guillaume Gressin, executive director of strategy and commercial operations for Airbus in Latin America.

For the executive, among the main incentives to accelerate the production of SAF in Brazil is the legislation focused on the subject. Earlier this month, Congress has approved the “fuel of the future” project.which provides for the implementation of national SAF programs, in addition to green diesel and biomethane. The text now depends on the presidential sanction.

“There is global interest in investing in SAF production in Brazil. In addition to expertise, the main reason is the regulatory framework, which gives investors a lot of confidence,” Gressin says. However, he stresses that, as these are billion-dollar projects, it is important to have clear rules to avoid noise amid political changes, since the fuel has rigorous certifications.

Source: Terra

Rose

Rose James is a Gossipify movie and series reviewer known for her in-depth analysis and unique perspective on the latest releases. With a background in film studies, she provides engaging and informative reviews, and keeps readers up to date with industry trends and emerging talents.