Brazil Orders 60-Day Energy Transition Roadmap With Oil-Funded Plan

Overview

• A presidential dispatch published in the Diário Oficial directs the Mines and Energy, Environment, Finance and Casa Civil ministries to draft transition guidelines within 60 days.
• The proposal must be presented as a priority to the National Energy Policy Council, outlining steps to reduce reliance on fossil fuels.
• The order requires financing options, including a new Energy Transition Fund funded by a share of government revenues from oil and gas exploration.
• Lula’s COP30 roadmap idea drew backing from about 80 countries but was left out of the summit’s final text, and Brazil’s COP presidency plans to keep working the issue into 2026.
• Policy tensions persist as Petrobras and the mines minister champion continued exploration and say oil will fund the shift, while the environment minister urges moving away from petroleum; Petrobras also cut planned investment for the area by roughly 20% after COP30 and recently received an Ibama permit to drill in the Equatorial Margin.