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Carbon neutrality and the energy transition

September 21, 2021

21/09/2021

By Leonardo Neri and Fabiana Porta

In December 2015, the international commitment to reduce global warming was approved. The agreement was discussed among 195 countries during the United Nations Climate Change Conference (COP21) in Paris, replacing the Kyoto Protocol.

Also ratified by Brazil, the pact's main objective was to reduce greenhouse gas emissions to curb the rise in global temperatures, in order to reduce vulnerability to extreme weather events and the susceptibility of underdeveloped countries to them. In April of this year, at the Leaders' Summit on Climate, hosted by the United States, the Brazilian government announced its intention to achieve carbon neutrality in the country by the year 2050, which can be achieved when no carbon dioxide equivalent is added to the atmosphere, either through emissions or withdrawal.

One way to achieve a “zero carbon footprint” is to not emit more CO2 than can be naturally absorbed through the photosynthesis process of forests and native vegetation. However, another way to achieve carbon neutrality is by reducing electricity production from coal plants and increasing production through renewable sources, such as wind, solar and biomass energy.

The Brazilian energy matrix, for example, is mainly represented by hydroelectric plants, which account for approximately 60% of the country's electricity generation. Although this is explained by the geographical conditions of the territory, exclusive dependence on this type of energy is detrimental, since the population depends on rainfall.

Regarding the growth in the participation of other renewable sources to obtain electrical energy, the country relies on wind energy, which, in 2009, had a share of 0.9% in the energy matrix and began to contribute, in 2021, with 10.2% of the energy generated, according to data obtained[1].

For the energy transition, energy production through renewable sources is not enough. Energy transition is needed in other sectors, such as transportation – use of renewable fuels, such as ethanol – and waste recovery (urban centers would be able to produce electricity through solid waste).

There needs to be a structural change in society, starting with the government. Faced with yet another crisis in the energy sector, we see that history is repeating itself and confirming itself, indicating that we cannot be dependent on a single source of energy.

Therefore, we need energy diversity for decentralized production, and it is essential to decouple energy production from water precipitation, which will give us greater efficiency and security of supply, as well as less waste, despite the promising scenario of recent years.

[1] https://origoenergia.com.br/blog/entenda-o-que-e-transicao-energetica

If you have any questions about the topics covered in this publication, please contact any of the lawyers listed below or your usual Mazzucco&Mello contact.

Leonardo Neri

+55 11 3090-7303

leonardo.neri@br-mm.com

This communication, which we believe may be of interest to our customers and friends of the company, is intended for general information only. It is not a complete analysis of the matters presented and should not be considered legal advice. In some jurisdictions, this may be considered lawyer advertising. Please see the company's privacy notice for more details.

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