On Wednesday, January 22, during the World Economic Forum in Davos, Switzerland, the Brazilian Federal Government discussed priorities and challenges that are inherent to the global energy transition. The schedule of meetings with world leaders, businesspeople and investors is part of the commitments of Minister of Mines and Energy Alexandre Silveira, appointed by President Luiz Inácio Lula da Silva to represent Brazil at the Forum.

We are at the forefront of the energy transition — and ready for these investments and to ensure legal and regulatory security" – Alexandre Silveira, Brazil’s Minister of Mines and Energy

The global electricity sector faces challenges driven mainly by geopolitical tensions and a volatile economic environment. Brazil, as a leader in the global energy transition, has stood out in the world for its efforts to find investments in clean energy.

Silveira highlighted that, following the legal frameworks approved by the government and the National Congress last year — especially the laws on Hydrogen, Offshore Wind and the Fuel of the Future — Brazil is prepared to receive investments. "We are at the forefront of the energy transition — and ready for these investments and to ensure legal and regulatory security," he explained.

The minister also presented the transition projects auctioned during the first two years of the Lula administration, securing BRL 60 billion in investments to strengthen the National Integrated System (Sistema Integrado Nacional) for electrical energy.

Another highlight were the efforts to modernize the energy distribution sector — based on a decree established last year and currently undergoing a regulatory phase by the National Electric Energy Agency (Agência Nacional de Energia Elétrica/Aneel) — with an expectation of doubling investments to modernize the sector by 2028 that reach BRL 120 billion.

Also present at the meeting were France’s Minister of Industry and Energy Marc Ferracci; the Netherlands’ Deputy Prime Minister and Minister of Climate Policy and Green Growth, Sophie Hermans; and the President and CEO of India’s NTPC, Gurdeep Singh. Private sector representatives were also in attendance, such as the President and CEO of Germany’s Siemens Energy, Christian Bruch; and the CEO of the AES, Andrés Gluski, from the US.

"Brazil has taken a huge step forward in the virtuous cycle of decarbonization: we have approved the Fuel of the Future Law. This chain will have to be valued worldwide, and the green premiums must be paid by developed countries, bringing returns to this synergistic chain that involves agribusiness, family farming and energy generation" – Alexandre Silveira

FUEL OF THE FUTURE — The Fuel of the Future Law (Lei Combustível do Futuro) gained international attention during the World Economic Forum. During the panel “Environmental Economic Factor – Integrating the Socioeconomic Benefit of Biofuels” on Wednesday, Alexandre Silveira presented Brazil's perspectives based on the legal framework that was approved in 2024.

During the panel at Casa Brasil, the minister presented the results that the country achieved within its decarbonization target for 2024 — when it surpassed the expected 38.78 million tons of CO2 equivalent that had been determined in 2023 by a National Energy Policy Council (Conselho Nacional de Política Energética/CNPE) resolution.

In 2024, following the issuance of 42.44 million carbon credits (CBIOs), the same equivalent value was no longer emitted into the atmosphere, thus generating BRL 3.9 billion. "Brazil has taken a huge step in the virtuous cycle of decarbonization: we approved the Fuel of the Future Law. This chain will have to be valued worldwide, and the green premiums must be paid by developed countries, bringing returns to this synergistic chain that involves agribusiness, family farming and energy generation," said Silveira.

Law No. 14,993 of 2024 — which created the Fuel of the Future — establishes a series of initiatives to promote decarbonization, sustainable mobility. and energy transition in Brazil. In this context, investments of BRL 260 billion are expected by 2037 in the sector, alongside the neutralization of 705 million tons of CO2 over the same period.

The initiative includes actions to leverage the use of biofuels within the energy matrix, in new percentages of biodiesel and ethanol blends in land transportation; in the decarbonization of the aviation sector through the use of SAF (sustainable aviation fuel); and in the expansion of the production and consumption of biomethane, among other measures.

During the panel, Accenture's ESG Latin America Director Felipe Bottini highlighted that each liter of biodiesel that is produced generates four times more returns for the Brazilian economy than fossil diesel — as much as 13.3 times more, if environmental factors are taken into account.

Highlighting the importance of the public policies to promote biofuels approved last year, Be8 CEO Erasmo Batistela stated that biofuels generate more returns for Brazil's GDP than fossil fuels, highlighting the country's strength due to its energy plurality. "Biofuels in Brazil generate jobs, income and decarbonization," he declared.