A strong Brazilian economy is key to climate action

Brazil is in a strong position to give its people a better life while also successfully confronting the threat of climate change, a new World Bank Group report released today said. According to the Country Climate and Development Report for Brazil, the country can become a global clean energy power and save the Amazon with a development plan that grows more food on less land and better protects the forests. Brazil can grow its economy and fight climate change with relatively modest investments in agriculture and deforestation, the energy sector, and cities and transport systems. “Climate shocks could push between 800,000 and 3,000,000 Brazilians into extreme poverty as soon as 2030. It is crucial that Brazil accelerate investments towards a resilient and low carbon growth pathway,” said Johannes Zutt, World Bank Country Director for Brazil. “To take full advantage of its potential, Brazil would need net investments of 0.8 percent of its annual GDP each year between now and 2030. The World Bank is committed to work together with the Government of Brazil to achieve its development goals while delivering on climate action.” The report highlights that Brazil is already in a strong position to source more renewable energy. Almost half of Brazil’s energy supply, including over 80 percent of its electricity, already comes from renewables, compared with world averages of between 15 and 27 percent. Adding more clean energy would not be more expensive for Brazil than current plans to expand fossil fuel generation. An increase in investment for renewables would have higher upfront costs for power generation, transmission and storage. But the report says these would be fully recouped by savings in fuel and operations costs. Likewise, a move in transport and industry to more electrification and green hydrogen, produced with wind and solar instead of gas, would not increase costs for the economy.