Brazil’s green transition beyond COP30
Brazil hosted COP30 this year, and under the leadership of President Lula da Silva it sought to set itself apart from previous COP presidencies and showcase its climate ambitions, even as it continues to back new oil extraction projects within its borders.
At the same time, Brazil is one of the key areas of interest for the European Union due to its large reserves of minerals and potential for renewable energy, which are seen as strategic for European industries, including military and clean technologies. This report examines these two core aspects of Brazil’s green transition policy in terms of foreign interests in the country.
Brazil currently produces 92% of the world’s niobium, a mineral classified as critical by the European Union (EU), and is estimated to hold around 23% of global rare earth reserves. With substantial renewable energy output, primarily from hydroelectric power plants, the country is also well positioned to become a major producer and exporter of green hydrogen, drawing interest from EU institutions. In fact, the three largest green hydrogen projects planned in Brazil are being developed by European multinational companies and investment funds.
These investments are driven largely by the EU’s unrealistic plans to import up to half of its hydrogen needs by 2030, which are guiding its external agenda. Through the Global Gateway programme, the EU provides public financing and diplomatic support to encourage European companies to invest in Brazilian hydrogen projects, prioritising European “energy security” and industrial interests with development funds, despite a track record of the negative impacts and risks such projects entail.
European countries such as Germany have also strongly influenced Brazil’s hydrogen policy framework, aligning it with European needs. Overall, Europe’s engagement reflects a strategy of securing external resources to support its own energy transition which reflects its neocolonial relations towards the Global South.
This report, written by the Debt Observatory in Globalisaiton (ODG) in the context of COP30, aims to provide a brief look at the corporate and geopolitical interests shaping Brazil’s green transition, zooming in on several hydrogen and mining projects in the country.
Brazil hosted COP30 this year, and under the leadership of President Lula da Silva it sought to set itself apart from previous COP presidencies and showcase its climate ambitions, even as it continues to back new oil extraction projects within its borders.
At the same time, Brazil is one of the key areas of interest for the European Union due to its large reserves of minerals and potential for renewable energy, which are seen as strategic for European industries, including military and clean technologies. This report examines these two core aspects of Brazil’s green transition policy in terms of foreign interests in the country.
Brazil currently produces 92% of the world’s niobium, a mineral classified as critical by the European Union (EU), and is estimated to hold around 23% of global rare earth reserves. With substantial renewable energy output, primarily from hydroelectric power plants, the country is also well positioned to become a major producer and exporter of green hydrogen, drawing interest from EU institutions. In fact, the three largest green hydrogen projects planned in Brazil are being developed by European multinational companies and investment funds.
These investments are driven largely by the EU’s unrealistic plans to import up to half of its hydrogen needs by 2030, which are guiding its external agenda. Through the Global Gateway programme, the EU provides public financing and diplomatic support to encourage European companies to invest in Brazilian hydrogen projects, prioritising European “energy security” and industrial interests with development funds, despite a track record of the negative impacts and risks such projects entail.
European countries such as Germany have also strongly influenced Brazil’s hydrogen policy framework, aligning it with European needs. Overall, Europe’s engagement reflects a strategy of securing external resources to support its own energy transition which reflects its neocolonial relations towards the Global South.
This report, written by the Debt Observatory in Globalisaiton (ODG) in the context of COP30, aims to provide a brief look at the corporate and geopolitical interests shaping Brazil’s green transition, zooming in on several hydrogen and mining projects in the country.
Brasil-Transition-COP30_ODGPDF file (1,97 MB)
This report was firstly published on www.odg.cat