BrazilBrazil could become a global hub for climate solutions
With its incredible wealth in resources and potential for sustainable energy production, Brazil is well positioned to become a global provider of climate solutions for the rest of the world. A new report from Boston Consulting Group lays out the details.
The largest country in South America and the continent’s economic powerhouse, Brazil enjoys a competitive edge in renewable energy, biofuels, sustainable agriculture, and low-emissions industrial products. These valuable advantages could score the country around $3 trillion in investments by 2050, according to US management consulting firm Boston Consulting Group.
Despite that potential, Brazil is a still the world’s fifth-largest emitter of greenhouse gases, mostly from agriculture and forestry. But the country’s leadership in biofuel production and sustainable energy production could help other countries on their net-zero journeys.
Solar and wind energy production, for example, are two key areas where sun-soaked and mountainous Brazil could find immense success. Brazilian producers of wind and solar energy are expected to boost their 40.2GW of clean energy production by at least 9GW in the coming years.
It is estimated that Brazil attracts around $15 billion a year in investments into solar and wind energy production. If the country is able to take control over the deforestation and forest fires that ravage continuously ravage the enormous Amazon rainforest, it could also become a leader in CO2 offsetting.
Biofuels is another area where Brazil shines, said the Boston Consulting Group report. The nation is the world’s second-largest producer of ethanol and the third-largest producer of biodiesel. Ethanol has been available at gas stations across Brazil for decades, with huge amounts of the sugarcane byproducts used to create it readily available.
Now, Brazil wants to go a step further in manufacturing other biofuels like sustainable aviation fuel, which is created using renewable feedstocks. With sustainability regulations becoming much stricter in the aviation industry, and airlines seeking to do their part in greening the industry, the market for sustainable aviation fuel is expected to grow strongly in the coming years.
Taking a broader perspective, the study suggested that the use of biofuels could cut emissions in the transportation sector by 50 million tonnes per year, roughly a quarter of total emissions (around 200 million tonnes of CO2 annually). However, reaching that point “is a long journey,” said Arthur Ramos, managing director and partner at Boston Consulting Group.
“Brazil has competitive advantages to lead the climate transition, particularly with nature-based solutions, biofuels, renewable energy, sustainable agriculture, and low-emission industrial products,” he concluded.
