Brazil is facing a series of important policy decisions that will determine its energy future over the next several decades, with important implications for the country's economic competitiveness, the well-being of its citizens, and the global climate. The decisions concern the direction of approximately 0.5 trillion U.S. dollars of anticipated investment in energy infrastructure over the next decade -- which can either lock in carbon-intensive infrastructure, or advance Brazil's position as a leader in the low-carbon economy.
This report examines Brazil's key energy-related GHG emitting sectors through a climate lens in order to offer recommendations for a more integrated approach that can more effectively reconcile energy and climate needs. It begins with an overview of Brazil's past energy and GHG emissions profiles, current pledges and future trends, and a discussion of the implications for a possible allocation of the remaining global carbon budget. Next, it reviews available scenarios for Brazil's energy-related GHG emissions in order to identify key drivers and results and compare them to a given allocation of the global carbon budget. It then focuses on the top emitting subsectors -- transport, industry, and power generation -- to identify key abatement opportunities. The report concludes with recommendations regarding a portfolio of policies and measures that could achieve both climate and energy objectives.