<article><p><i>Brazil does not yet have a consensus on climate and energy, or regional geopolitics, write Elizabeth Johnson and Lucas Parolin</i></p><p class="lead">Brazilian president Luiz Inacio Lula da Silva is pushing his leadership on regional climate and economic integration goals, but the breadth of his policy ambitions is causing frustration for some people — at home and abroad.</p><p>The UN has accepted Brazil's bid to host the Cop 30 climate conference in 2025, in Para state's capital Belem, on the edge of the Amazon rainforest, Lula says. But his environmental agenda is causing divisions within his own government. The recent rejection of state-controlled Petrobras' request to drill an exploration well in the offshore Foz do Amazonas basin has led to a rift between environment minister Marina Silva and other members of the administration.</p><p>Energy minister Alexandre Silveira has urged Petrobras to lodge an appeal, while senator Randolfe Rodrigues — an ally of Lula's from the northern state of Amapa, which could reap financial benefits from offshore oil exploration — has promised to fight the decision and withdrew from the Rede Sustentabilidade party headed by Silva. Adding further pressure, a congressional committee has approved draft legislation that could limit the powers of the environment and indigenous people's ministries that are key to fighting deforestation.</p><p>But Lula's greener goals have made more progress abroad, including calling on the US and other developed nations to fund global efforts to protect tropical forests, and visiting China to push his green agenda. And regional climate and energy transition efforts were part of a wider agenda when Lula hosted South American leaders from 11 countries in Brasilia on 30 May, aiming to strengthen ties that had frayed during the presidency of his predecessor Jair Bolsonaro.</p><p>The summit was an attempt by the Lula government to rebuild Brazil's role as a regional leader, as China continues to expand its influence and economic importance on the continent. Regional leaders signed up to the "Brasilia consensus", under which they agreed to work to expand co-operation and integration in the region, and pledged to create a mechanism to finance climate change mitigation projects and promote joint energy transition efforts.</p><p>Lula defended a series of policy proposals aimed at increasing regional economic integration, including creating a common currency to aid trade and reduce the region's "dependence" on other currencies. This has become a recurring theme — he suggested conducting commodities trade using the yuan while in China in April, and has tabled the idea of a currency for trade in the Mercosur bloc.</p><p>On energy, Lula called on regional countries to begin discussions on the creation of an integrated South American market. This would contribute to "secure supplies, the efficient use of resources" as well as "fair prices and social and environmental stability", he says. But talks to restore Brazil's energy links with Venezuela have raised political concerns among some leaders.</p><h2>Power play</h2><p class="lead">The summit marked Venezuelan president Nicolas Maduro's return to Brazil after an eight-year hiatus. He and Lula agreed to work to resume Venezuelan electricity exports to Roraima state in northern Brazil, which historically relied on Venezuela for up to half of its power until supplies halted in 2019. The countries are assessing the possibility of using the power exports to repay part of Venezuela's debt to Brazil. Petrobras chief executive Jean Paul Prates also announced an intention to resume investments in the region, including Venezuela.</p><p>Lula described Venezuela as a democracy in his meeting with Maduro, arguing that it has been the victim of an "anti-democratic and authoritarian narrative". But Uruguayan president Luis Lacalle Pou and his Chilean counterpart Gabriel Boric criticised this view, stressing serious human rights violations in Venezuela.</p></article>
