ESG: Time to build the new era

The election of President Luiz Inácio Lula da Silva was excellent news for Brazilian international relations. After a period of four years of isolation for Brazil on the international scene, Brazil will once again be an important player, especially in issues related to climate change. For companies and investors, ESG investment opportunities will be relevant. Below we list some of these opportunities for Brazil and the world:

(1) Electricity generation: Brazil is a leader in the construction of solar and wind power plants, as well as in the energy storage of these sources. It is important to note that this plant can generate three more jobs than oil and gas plants. It is the best way to reduce carbon emissions and the investment cost of increasing energy capacity;

(2) Investments to improve industry efficiency: building retrofits, new power plants and production and installation of new appliances. Technologies are available today to reduce energy costs by up to 50%;

(3) Transport: electric vehicles (light and heavy), renewable sources (alcohol and other vegetable sources), aviation, navigation. These changes imply a substantial change in infrastructure that will generate many jobs. This is the area where Brazil can contribute to zero carbon emissions;

(4) Technological and productive innovation: Brazil is developing a lot in the hydrogen (H2) and CCUS – Carbon Capture Utilization and Storage industries, which can play an important role in the decarbonization of the steel, chemical, oil and gas industries;

(5) Investment in new and same agricultural areas with substantial improvement in water management and mangrove protection. In addition, there are new technologies to improve the quality and productivity of smaller areas for growing food around megalopolises such as São Paulo and Rio de Janeiro;

(6) Restoration and protection of nature: Brazil must stop deforestation and restore the destroyed areas, especially Amazon and the Pantanal. These initiatives can greatly change the form and quality of production in these regions. There are many opportunities for innovation and new technologies.

(7) Agriculture: Brazil is the most productive country in the world in this area. At this moment, investment in sustainability will play a fundamental role in the coming decades. New practices must be adopted to regenerate areas, reduce food losses and waste and produce more organic food.

Original: https://www.eurolatamlex.com/images/newsletter/Newsletter-EuroLatamLex-N14-2022.pdf