Brazil's Energy Mix Goes Green Even As Oil Production Climbs
Brazil is continuing to expand its renewable energy capacity thanks to favourable national policies and support from foreign investors. The South American giant has developed an impressive green energy industry in recent years, expanding its oil and gas production to strengthen energy security and establish its reputation as a regional energy hub. By 2025, Brazil had an impressively low-carbon…
Brazil is making strides in its transition to a green energy mix while simultaneously expanding its oil and gas production. The nation has established a robust renewable energy industry through favorable policies and foreign investment. As of 2025, roughly half of Brazil's energy was derived from clean sources, such as solar, wind, and bioenergy.
This diversification has resulted in lower energy-related emissions, making up less than 20% of the country's total greenhouse gas emissions, compared to the global average of around 75%. In August alone, Brazil added 1.68 GW of solar, wind, and thermal capacity to the grid, bringing its total additions in 2026 to 4.85 GW, with solar power contributing 3.5 GW of new capacity.
The country now boasts 221 GW of total installed power generation capacity, with nearly 85% of it coming from renewable energy. The World Bank has approved a $500 million loan to encourage investment in low-carbon industrial commodities, clean fuels, and enabling infrastructure in Brazil's Northeast region. This development aims to create jobs and stimulate economic growth in one of the country's poorest regions.
The New Development Bank also provided financing for a wind project in Paraba, Brazil, totaling 648 MW. China and Brazil have strengthened their cooperation in renewable energy and cleantech development, with China's State Grid Corporation breaking ground on a 1,468-km ultra-high voltage power transmission project, marking the largest electricity transmission investment in Brazil's history.
Ahead of the presidential elections, business groups are urging candidates to support green growth. CEBDS, a business council representing 11 of the largest Brazilian business groups, has called for greater focus, strategy, and governance to strengthen Brazil's competitiveness and sustainable development. The election frontrunners include leftist President Luiz Incio Lula da Silva, who has expressed support for green energy, and right-wing Senator Flvio Bolsonaro, who favors oil and gas expansion but acknowledges the broad support for clean energy.
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