Brazil Achieves 89% Renewable Electricity, Leading Global Sustainable Energy Transition – IRENA Report

A new report from the International Renewable Energy Agency (IRENA) highlights Brazil’s significant role in the global transition to sustainable energy, showcasing its distinct path toward a greener future. Currently, renewable sources supply about 89% of Brazil’s total electricity generation, a remarkable achievement that positions the country as a leader in clean energy. This success is largely due to its extensive hydropower capacity and its long-standing expertise in sustainable biofuels, particularly bioethanol. The integration of renewable energy into Brazil’s national grid has not only strengthened local supply chains but also created numerous green jobs, providing substantial domestic benefits.

IRENA’s report presents Brazil’s experience as a valuable model for other countries, particularly those in the Global South. One of the key takeaways is the effectiveness of Brazil’s regulatory framework, which emphasizes market competition rather than direct price control. The government uses tax policies strategically to encourage the use of ethanol, making it a competitive alternative to gasoline. This approach has significantly contributed to decarbonizing the transport sector and reducing reliance on fossil fuels. By maintaining a long-term policy vision, Brazil has been able to lower investment risks and encourage innovation in sustainable fuel technologies.

Despite its achievements in renewable energy, the report highlights several challenges that Brazil must address to meet its climate targets. While the energy sector is largely clean, Brazil remains a major global oil producer due to its pre-salt reserves, creating a complex balance between fossil fuel production and renewable energy commitments. Additionally, Brazil faces unique environmental challenges compared with other major economies. Emissions from land use, land-use change, and forestry (LULUCF) are higher than those from the energy sector, emphasizing the need for integrated strategies that address deforestation while advancing energy decarbonization efforts.

Looking ahead, Brazil’s role on the international stage will be particularly important. As the host of the COP30 climate conference in 2025, the country has an opportunity to influence global climate action and advocate for a just and inclusive energy transition. Brazil is also co-hosting initiatives such as the Global Coalition for Energy Planning (GCEP) alongside IRENA, which aim to attract private investment by demonstrating how long-term, integrated energy planning can reduce financial risks. These efforts underscore Brazil’s potential to lead by example in balancing economic growth, sustainable energy development, and environmental protection.

The report concludes that Brazil stands at a pivotal moment. The country can either continue on a conventional energy path or take a bold stance to spearhead a just energy transition. Achieving success will depend on the consistency of long-term policy objectives and strong international cooperation. By aligning renewable energy expansion with the protection of vital biomes and sustainable land management, Brazil has the potential to decarbonize its economy while maintaining its unique ecological heritage.

Brazil’s journey illustrates the importance of combining regulatory clarity, strategic fiscal policies, and long-term planning to achieve both domestic benefits and global climate goals. The lessons learned from its experience provide a roadmap for other nations seeking to expand renewable energy, reduce emissions, and transition toward a sustainable energy future. With careful planning and collaborative action, Brazil can continue to strengthen its leadership role in the global clean energy transition, demonstrating that economic growth and environmental stewardship can go hand in hand.