“There is no alternative outside the green economy”, states Alexandre Silveira, Minister of Mines and Energy

In an exclusive interview with the G20 Brasil website, the Minister of Mines and Energy, Alexandre Silveira, talks about Brazil's prospects for the production and use of renewable energies. The country is Latin America's leader in investments in the energy transition.

According to a report by BloombergNEF, Brasil made a substantial investment of about $34.8 billion in renewable energies in 2023. The country leads Latin America in investments towards energy transition and ranks 6th globally. The top investors were China, followed by the United States, Germany, the United Kingdom, and France. 

To delve into the subject and explore future prospects, particularly within the framework of Brasil's presidency of the G20 this year, Minister of Mines and Energy Alexandre Silveira convened with the G20 Brasil website team. The Ministry of Mines and Energy leads the Energy Transitions Working Group, which is focused on addressing the global shift toward clean and sustainable energy sources, as well as devising pathways for an equitable, accessible, and inclusive energy transition. Sustainable development remains a key priority for Brasil, and the upcoming meeting of the Energy Transitions Working Group is slated for April 15 and 16, 2024.

Minister Alexandre Silveira, a native of Belo Horizonte, is 52 years old and holds a Bachelor's degree in Law. Prior to his current role, he served as the chief delegate of the state of Minas Gerais before transitioning to a distinguished political career. The Minister served two terms as a congressman (2006 and 2010) before assuming office as a Senator of the Republic in 2022. The subsequent year, he assumed leadership of the Ministry of Mines and Energy.

Brasil is undoubtedly among the nations making substantial progress in transitioning to clean and renewable energies. Can we say that the country sets a global benchmark in this sector?

Brasil has emerged as a key leader in the global energy transition, primarily leveraging its abundant natural resources. With access to 11% of the world's freshwater, Brasil has capitalized on this advantage to vigorously produce clean and renewable energy through its extensive network of hydroelectric plants. Furthermore, the abundant sunlight in the North and Northeast regions, coupled with strong winds, contributes significantly to the generation of solar and wind energy.

Another notable asset of Brasil, bolstered by robust public policies, is the decarbonization of the transportation sector through biofuels. Brasil has made substantial investments in ethanol technology and is currently directing efforts toward decarbonizing the aviation transportation sector via Sustainable Aviation Fuel (SAF). In fact, we have presented the Future Fuel Bill to the National Congress, a legislation that could further facilitate decarbonization within this domain.

However, alongside these potentials, it is crucial to underscore Brasil's leadership in the energy transition, boasting an impressive 88% of clean and renewable electricity. Over the past year, we have further fortified our already robust transmission line infrastructure across Brasil, a nation spanning a transcontinental territory. With 26 out of 27 federative states interconnected through the national integrated system, Brasil now boasts 186 thousand kilometers of transmission lines. In 2023 alone, we secured contracts totaling approximately $12 billion for transmission lines through auctions. This significant investment will not only triple our commitments to wind, solar, and biomass energies but also fortify our infrastructure and bolster the country's energy security.

What experiences can the country demonstrate for implementation in other G20 nations?

We anticipate exporting sustainability through products like green hydrogen. Green hydrogen facilitates the production of ammonia, and consequently, urea, a product for which Brasil heavily relies on imports. This presents us with the opportunity to achieve self-sufficiency and manufacture nitrogen fertilizers, which play a crucial role in agriculture and food production. By producing ammonia and urea, among other chemical substances, we can enhance crop yields and ensure food security on a large scale in Brasil.

We also aim to assist developing countries, particularly those in Global South, by sharing successful initiatives from Brasil. Unfortunately, in many of these countries, a significant portion of the population lacks access to electricity, resulting in dire consequences, including loss of life. Many rely on wood stoves for cooking, leading to serious accidents. To address these challenges, we have been cultivating important partnerships to extend our successful programs to developing countries. One particularly noteworthy initiative is the "Light for All" program, which has already made a significant impact within Brasil and is now gaining traction globally.

How can the G20 experience further credential Brasil to host COP 30 and enhance the country's leadership in the areas of energy transitions and combating climate change?

No one in the world questions the importance of Brasil achieving lower carbon dioxide emission targets to meet our commitments under the Paris Agreement by 2030. We will emphasize the necessity for a serious discussion on how to ensure fairness among nations that have invested in sustainable and environmentally friendly energy systems, despite the associated costs to their populations, compared to industrialized countries that have not taken comparable actions.

We will pursue international mechanisms to evaluate and monetize these energy systems by creating opportunities. Allow me to provide an example: when refueling a vehicle in Brasil, 88% of the energy used is clean and renewable. However, in Germany, refueling the same vehicle results in the utilization of about 50% dirty energy made from coal or oil. Those emitting higher levels of carbon dioxide should bear a greater financial responsibility.

Those committed to preserving the planet— and I believe that culturally, younger generations are already very conscious of this— should prioritize production in countries with clean energy matrices. In other words, industrializing our ore here in Brasil may entail slightly higher costs? It might. However, it signifies sustainable production as it relies on clean and renewable energy sources. Conversely, those producing the same product in Germany or Arab countries will rely on oil or gas energy, which isn't as environmentally friendly as in Brasil.

What about the social aspect of the energy transition?

People often only recognize the value of electricity when faced with power outages or spoiled food due to a lack of refrigeration. However, energy production plays a crucial role in driving economic development, and amid the energy transition, it emerges as a vital catalyst for inclusivity and social equity worldwide. For us, the energy transition must serve as a catalyst for job creation and income generation to address inequalities, particularly in Global South countries. We should capitalize on their untapped potentials, which often surpass those of developed nations that have already depleted natural resources, industrialized extensively, and deforested large areas.

The G20 is the forum where we can demonstrate our strengths to the world, such as iron ore for green steel and low-carbon agriculture. Furthermore, President Lula's renewed engagement with the press, civil society, and social movements underscores Brasil's leadership in international discourse. We aspire for the energy transition, as Pope Francis stated, to offer substantial opportunities beyond sustainability, including job creation, income generation, and justice for countries like Brasil that have heavily invested in clean and renewable energy. How do we value the transition? The true value of the transition lies in a robust international dialogue, marked by genuine commitment from all nations. Those with the highest carbon emissions should bear greater financial responsibility or provide economic compensation to those with lower emissions.

Is there investment to drive a change in mindset?

The green economy is here to stay. While some developed countries may resist due to survival concerns, they risk being sidelined by the younger generation. Countries that have yet to invest in sustainability or embrace the green economy will face rejection from newer generations. Just as our generation rejects smoking, younger generations will shun products produced at the expense of CO2 emissions and their impact on the atmosphere.

The presidency of the G20 and COP will be crucial opportunities for us to showcase our strengths and advocate for a culturally appropriate vision in a gentle, democratic manner, while respecting the sovereignty of nations. It is important to recognize that there is no alternative outside the green economy. In other words, without sustainability, there will not be a secure long-term market.

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