Climate and Policy Resilience in Brazilian Renewable Energy

Hung Q. Tran, Travis Knoll and Otaviano Canuto

No 2638, Policy briefs on Economic Trends and Policies from Policy Center for the New South

Abstract: The Brazilian context involving a clean-electricity base, a more balanced lobbying landscape, and mounting climate and social pressure, makes it more difficult for the kind of abrupt and unrestrained energy policy swing seen in Colombia. The trend in Brazil tends to be more economically viable for renewables. However, these structural conditions by themselves will not guarantee the success of the transition. Fruition will depend on whether policymakers use this window to prepare for unavoidable climate disruption and the technological shifts of the coming decades, directing investment and infrastructure to real demand with disciplined allocation of scarce resources that can benefit communities and not just small segments of society. Getting the build-out of AI infrastructure and of other decisive technologies right, alongside the sine qua non energy transition, is instrumental to position Brazil to compete in the next phases of the global innovation race in a way that can distribute democratically possible benefits to society and that preserves already stressed natural systems. Pairing the energy transition with adaptation and resilience investment is not simply Brazil's best opportunity, it is a precondition for the country's long-term prosperity and survival. In June 2026, Latin America’s renewable energy advocates watched Colombia pivot sharply away from its ongoing fossil-fuel phaseout led by its former president Gustavo Petro. Newcomer Abelardo de la Espriella, winner of the May 31 presidential election, has pledged to aggressively expand oil and gas exploration to replace waning hydroelectric capacity, rather than to deepen the energy transition.

Date: 2026-09
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