Photo: screengrab from the official website of Brasil 247

By Brasil 247 – Brazilian President Luiz Inácio Lula da Silva instructed ministries to prepare a resolution on energy transition within 60 days for the National Council for Energy Policy (CNPE), according to Brasil 247 and G1. The decision follows COP30 in Belém, which ended without agreement among countries on a global roadmap to phase out fossil fuels. 

Lula directed the ministries of Mines and Energy, Finance, Environment and the Chief of Staff’s Office to draft guidelines for a structural shift in the country’s energy model. The proposal will set parameters to reduce Brazil’s dependence on oil, coal and natural gas, and outline financing mechanisms, including the creation of an Energy Transition Fund supported by revenue from the oil and gas sector. 

Energy transition involves replacing high-emission sources with clean and renewable alternatives such as solar, wind, electric and hydropower. The issue is central to global climate negotiations but again faced diplomatic deadlock at the UN conference in Brazil, remaining outside the COP30 final declaration. 

Despite the president’s strong international stance, the government faces domestic contradictions. Brazil continues to rely on fossil fuel exploration as a development strategy, and efforts to limit oil expansion have stalled. 

The topic gained momentum after Ibama authorized Petrobras to drill a well in the Equatorial Margin, an area officials say could help finance the country’s energy transition. The presidential directive states that part of oil revenue will support the transition, echoing earlier comments from Petrobras CEO Magda Chambriard, who argued that “the energy transition will be financed by oil itself.” Petrobras recently reduced planned investments in the area by 20 percent. While the 2025–2029 plan allocated $16.3 billion, the 2026–2030 projection dropped to $13 billion. 

International debate on phasing out fossil fuels remains slow. At COP28 in Dubai, countries acknowledged the need to “transition away” from fossil energy, but COP29 in Azerbaijan produced no concrete progress. With the lack of consensus at COP30, the Brazilian government presented its own roadmap, which has so far gained the support of around 80 countries.


(Reported by Brasil 247 on December 8, 2025)