Brazil has a strong potential to achieve national climate goals and can also be an important decarbonization partner forother countries, especially in the supply of green hydrogen and critical raw materials for the production of new climateneutraltechnologies. This article highlights the main tools and policies for Brazilʼs decarbonization and identifies potentialareas in which the country can not only achieve its nationally determined contributions (NDCs), but also ensure innovativegreen economic growth.Low carbon intensity energy sources can ensure a low carbon footprint for industrial products, which can make goodsmore attractive in the face of increasing requirements and the introduction of measures such as the European Unionʼs (EU)carbon border adjustment mechanism (CBAM). Extensive deployment of renewable energy creates opportunities for thecountry to produce sustainable hydrogen, which will be in demand both domestically and globally. The main challenge forBrazilʼs decarbonization is its extensive agriculture, as well as widespread deforestation, the rate of which increased underthe J. Bolsonaro administration. For agricultural products, which make up a large share of exports, avoided deforestationrequirements like those adopted in the EU would be a real barrier and could close European and other markets. The miningand processing of critical raw materials could be a potential breakthrough for the countryʼs economic growth due to thewidespread decarbonization of the global economy. The low carbon intensity of the countryʼs industry, including mining, dueto renewable energy sources appears to be a significant advantage.Lulaʼs return has given the international community hope that, at least in forestry and agriculture, significant effortscan be expected from Brazil, including international support, financing, and auditing.

The article was written on the basis of the RANEPA state assignment research programme

This article was submitted on 21.08.2023