Why Brazil has great potential to decarbonize industry

Brazil is pushing to decarbonize its industry and position itself as a global leader in these efforts.

To realize its potential and find alternative routes for decarbonizing industrial chains, Brazil partnered with the Industrial Transition Accelerator (ITA). 

Rodrigo Rollemberg, secretary for green economy, decarbonization and bioindustry at the development, industry, trade and services ministry (MDIC), talks to BNamericas about the potential gains.

BNamericas: What is the role of the Brazilian energy sector in decarbonizing industrial activity?

Rollemberg: Industrial activities are major energy users. That's why finding sustainable alternatives for energy supply is essential.

It should be stated that Brazil's electricity matrix is one of the most renewable in the world. In 2023, around 90% of the electricity produced in the country came from renewable sources. 

Brazil therefore has great potential to find alternative routes for decarbonizing industrial chains.

BNamericas: How can the partnership with ITA contribute to this?

Rollemberg: With the partnership between MDIC and ITA, we’re allocating efforts and investments to improve green industrial projects. We’ll be able to identify these projects, assist in the search for investors, implementation, map new technologies and encourage the development of projects in line with the country's energy transition plans.

It's a great opportunity for developers and for the country as a whole. ITA is a great partner for financing these projects.

BNamericas: Why is the MDIC promoting the energy transition in industry?

Rollemberg: The energy transition is urgent. The extreme climate phenomena we’re seeing show us how essential and immediate this agenda is. That's why we at the MDIC, under the coordination of the minister and the vice president, Geraldo Alckmin, and led by the president [Luiz Inácio Lula da Silva], are working to leverage the industrial sector on a new basis.

Hence the New Industry Brazil (NIB) program, which promotes a more sustainable industry, with new routes, promoting the circularity of products, fostering the bioeconomy and the impact economy and working toward the decarbonization of chains.

BNamericas: What are the expected gains for the country?

Rollemberg: There’s a growing demand for products with a smaller environmental footprint. This is a great opportunity to reposition Brazilian industry in the world market. 

We expect to see major gains in the competitiveness of our industries in the national and international markets, as well as an important contribution by industry to the decarbonization of the Brazilian economy. 

We’re calling this process 'neo-industrialization', an industrialization along new lines, with sustainability, with actions that promote innovation, with gains in productivity and competitiveness to promote a green, diversified and densified economy. This is a unique opportunity for the country's development, which we don't intend to miss.