President Luiz Inacio Lula da Silva called for Brazil's own draft roadmap for a "just and planned" energy transition, focusing on the move away from fossil fuels, after leading efforts for such an international plan.
Brazil's energy, environment and finance ministries, as well as the chief of staff, must draft a resolution by 60 days from 5 December, or by 3 February, according to a presidential decree published in the official gazette on 8 December.
Lula called for the creation of an international roadmap to move away from fossil fuels during a leaders' summit only a few days before the UN Cop 30 climate summit. That led to over 80 countries supporting a call for a roadmap to be included in final agreements at Cop 30. But the proposal did not make it to the summit's final decision.
Instead, the Cop 30 presidency pledged to create a roadmap on the issue outside of official negotiations. Cop 30 president Andre Correa do Lago said recently that an initial draft of roadmap could be ready by April, when Colombia is set to host a global summit on the topic.
Energy transition fund
Lula also requested the creation of a draft resolution to "propose financing mechanisms to implement an energy transition policy", which would include creating an energy transition fund financed "by a portion of government revenues from oil and gas exploration".
The ministries and chief of staff will also have 60 days from 5 December to draft this resolution.
Lula had also asked oil and mining firms to pay their fair share of climate financing during a speech at Cop 30. This comes after similar efforts at previous climate summits. An initiative from the Cop 29 presidency called for a climate fund, capitalized with voluntary contributions from oil, coal and gas-producing countries and companies, to support developing economies in addressing climate change. But the fund was never set up and the topic slid from the agenda.
Brazilian state-controlled oil firm Petrobras did not answer Argus' requests for comments on the topic. Mining giant Vale declined to comment.
But Brazil's oil, gas and biofuels institute IBP "recognizes the importance of creating a fund to finance energy transition and climate change projects and understands that the oil and gas sector can and should be part of the solution for this process", it told Argus.
Brazil's oil and gas sector contributes with R325bn ($60.85bn)/yr in taxes and "part of this amount should be directed towards climate finance and a fair and efficient energy transition process", IBP said. But for that it is necessary to maintain oil and gas production, it said.
Brazil has been steadily increasing its oil production. It produced 4.03mn b/d of crude in October, a 23pc increase from the same month in 2024, data from hydrocarbons regulator ANP show.
The country has plans to expand oil production to 5.3mn b/d by 2030, according to energy research bureau Epe, hinging on new exploratory frontiers such as the southern Pelotas basin and the environmentally sensitive equatorial margin.
IBP also argues that Brazil's oil sector already faces a large tax burden, with 66pc of all crude destined for the payment of taxes, fees and royalties.
"We want to and will contribute, but it's necessary to point out that there's no way to create more burdens on the sector's supply chain", it said. The group argues that the fund's financing should come from the redistribution of current government oil and gas revenues.
"Increasing taxation on oil and gas exploration and production could make future projects unfeasible," it said.
