How Brazil can put climate action back at the centre of the global agenda

Reuters

09-04-2025

April 8 - The recent scene in the Oval Office, where Ukraine's President Zelensky found himself in a high-stakes clash with U.S. President Donald Trump and Vice President JD Vance, is another reminder of how the leaders of the world's largest economies are consumed by an unravelling international order. Climate action, once a priority, risks becoming collateral damage.
This is a dangerous miscalculation. In a world grappling with uncertainty, climate leadership offers the potential for long-term economic stability and peace. Investing in clean energy and nature positive economies creates jobs, secures supply chains and protects nations from economic and environmental shocks. It is no accident that businesses, from industrial giants to agricultural cooperatives, are increasingly looking to decarbonisation as an essential strategy for long-term resilience.
Brazil, as host of COP30 in Belem later this year, has the opportunity to put climate back where it belongs, at the centre of the global agenda. It has already taken a bold step with its new Nationally Determined Contribution (NDC), committing to cutting emissions by 59-67% by 2035 , opens new tab from 2005 levels, a significant leap forward from its previous target for 2030. But targets, while necessary, are meaningless without mechanisms to implement them.
That is why Brazil's Plano Clima (Climate Plan) and its forthcoming national emissions trading system (ETS) are so critical. They send a clear message: this is a country ready to move beyond rhetoric and into execution. And implementation is what investors want to see.
A new analysis, How Brazil's new NDC can drive private sector investment in climate action, opens new tab, highlights why Brazil has everything to gain from leading the charge. The country is already an energy powerhouse, with 85% of its electricity coming from renewables – far ahead of other G20 economies. By expanding its clean energy infrastructure, doubling down on sustainable agribusiness, and making full use of its natural capital through nature-based solutions, it can position itself as the epicentre of green economic growth.
But time is short. COP30 is not just an environmental conference; it is a geopolitical moment. Brazil must use it to demonstrate that climate leadership is the new global currency of power.
Deforestation remains one of Brazil's biggest environmental challenges, contributing nearly half of the country's greenhouse gas emissions in 2023. While efforts to curb deforestation have seen some success, maintaining these gains requires stronger collaboration between the government and private sector. Brazil has committed to ending illegal deforestation and significantly reducing overall forest loss by 2030, but this will only be possible with stricter enforcement, investment in land restoration and better support for sustainable agriculture.
Energy follows the same pattern. The country has long benefited from a high share of renewables, and data shows investment in renewable energy creates more employment than in the fossil fuel industry. Brazil is one of the largest renewable energy job creators in the world, opens new tab, behind only China.
But future growth depends on the speed at which it scales up new energy solutions such as electrification, advanced biofuels and green hydrogen. Global markets are shifting. European and Asian economies are placing increasing value on low-carbon supply chains. If Brazil acts now, it can secure long-term trade advantages while simultaneously attracting the capital needed to accelerate the transition.
To ensure Brazil's NDC drives private sector investment in climate action, the government must implement clear and coherent policies. This includes establishing priorities, decarbonisation pathways and policies aimed at tackling barriers to private sector investment within each sector.
In forestry, deeper collaboration with the private sector is needed to build on progress from initiatives such as the Amazon Deforestation Action Plan and the soy moratorium, opens new tab. In agriculture and livestock, agricultural plans, land restoration efforts and greater clarity on accounting for carbon removals could help to reduce emissions, while maintaining competitiveness and resilience.
Meanwhile the energy, transport and industry sectors need clear targets and timelines for phasing out fossil fuels and scaling up clean energy solutions. This together with strengthened policies for innovation, support for deployment of clean energy solutions, and implementation of the forthcoming Emissions Trading System, could drive further private sector action.
Finally, fostering consistent dialogue between the public and private sectors is critical to translating policy into action. Brazil can support companies to decarbonise their operations and supply chains by creating stronger economic incentives to reduce emissions and promote the development of business transition plans.
Spaces for structured collaboration – such as business-government workshops, technical assistance programmes and transparent reporting mechanisms – will strengthen trust and encourage joint action toward net-zero goals. Strengthening public-private collaboration will be key to realising Brazil's climate ambitions.
Climate is the security issue of our time. If COP30 is to succeed, Brazil must ensure that climate action is framed not as an environmental imperative, but as an economic, geopolitical and peace stabiliser. There will be more political crises and distractions, but none of these change the simple truth: climate action is the only viable path toward long-term stability.
Brazil has the power to shift the conversation. By delivering a carefully thought through climate plan it can bring new investment, new industries and new jobs – not just for its own people, but for the global economy. It can be the bridge between developed and developing nations, proving that sustainable growth is possible and profitable.