06/08/2024 – 19:50
The Minister of Mines and Energy, Alexandre Silveira, stated this Saturday, 8th, that liberalism is not the answer for some public areas. The speech took place during a debate in a forum held by Esfera, in Guarujá, on the coast of São Paulo.
Silveira’s statement came as a counterpoint to the governor of São Paulo, Tarcísio de Freitas (Republicans), who, unlike Oliveira, said he was liberal and believed “in Brazil that will have a market economy, a Brazil that will take advantage of its potential , which will make an energy transition”.
Silveira came out in defense of a State that does not depend exclusively on the private sector. “The country needs to grow, generate jobs and income. We need to create opportunities for all this regulatory legal stability, since we have a country that is geopolitically very well placed and has social and political stability. And this was even demonstrated last year, with the maximum possible turbulence that could have occurred. We need to look for solutions so that we can invest again. And not all areas can be resolved exclusively with the ultra-liberal state that only believes in private investment”, stated Luiz Inácio Lula da Silva’s minister.
Silveira also stated that he sees no inconsistency between Brazil’s ambition to be a reference in the global energy transition agenda and, at the same time, continue exploring oil fields, including in the Foz do Amazonas Basin. “Unfortunately, there is no one in the world who can say how soon we will be able to give up the energy source of oil”, highlighted Silveira.
“It is not incongruous [com a agenda de transição]. We do have to give the right to Brazilians, to the productive sector, to know their natural potential and make Brazil grow and combat inequality”, reinforced the minister, who says he believes in decarbonization.
According to Silveira, while investing in oil exploration, Brazil contributes to global sustainability. Recalling that, thanks to public policies implemented over decades, 88% of the country’s electrical energy comes from renewable sources, he highlighted that Brazil has already made and will continue to invest in the energy transition.
In this sense, he cited the contracting this year of more than R$60 billion in transmission lines, which, according to him, will unlock even more clean and renewable energy for the country. He also said that he awaits the approval of the Fuel of the Future bill . Already approved in the Chamber, the project foresees a greater mixture of anhydrous ethanol in gasoline, from 27.5% to up to 35%, and biodiesel in diesel, from 14% to 25%.
For the Minister of Mines and Energy, Brazil has the authority to discuss energy transition in the international arena. By presiding over the G20 meetings this year and hosting, in November next year in Belém, Pará, COP30, the United Nations (UN) climate change conference, Brazil – defended Silveira – needs to take advantage of the opportunity to open the doors to investments that the rest of the world is making in replacing fossil fuels.
‘Magda Chambriard has our full trust’
Silveira reinforced that the government has confidence in the work of the new president of Petrobras, Magda Chambriard. He mentions again that the company’s CEO followed the discussion, in the first year of Lula’s new administration, about the priorities that the Executive defends for the company.
“We always highlight with vehemence and transparency what the government thinks of Petrobras. The government is controlling and we understand that, respecting the company’s governance, it must participate in strategic issues”, he declared before participating in the Esfera Forum panel.
Silveira has defended in public statements a balance between the need to maintain Petrobras’ attractiveness for internal and external investors and the investment agenda defended by the government. Jean Paul Prates’ departure is internally attributed to a possible misalignment with this agenda.
“The current president has all our confidence, especially because she followed this entire debate that lasted one year and four months. So she knows the agenda that is so important for Brazil, which is maintaining a vigorous company, with very secure governance and that is attractive to investors, but also fulfills its social function”, said Silveira.
The minister has also publicly reiterated that the government defends “what is already public”, when talking about the company’s priorities. The strategic plan for the period from 2024 to 2028 forecasts investments of US$102 billion. The amount is 31% above the US$78 billion in contributions between 2023 and 2027. In addition to oil and natural gas, there are priorities in “profitable” low-carbon investments, according to a statement from Petrobras released at the end of 2023.
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