Brazil has established itself among the ten major producers of fossil fuels in the world, and its relevance in the petroleum geopolitics is undeniable, just as, directly and indirectly, in the global emissions by fossil sources.

In a direct way, due to the fact that emissions by burning fossil fuels represent 19% of emissions in the country. In an indirect fashion, because the fossil fuels distributed by Brazil to the world via exportations constitute energy sources for the most diverse sectors and are a part of global emissions. The scenario has already been mapped by an Intergovernmental Panel on Climate Change’s (IPCC) report, which should “sound like a death sentence to fossil fuels before they destroy the planet”.

Incentives and subsidies given for fossil fuels are intrinsically linked to countries, industries, and investors’ global resistance to restrict the growth of production and emissions, which has delayed the unavoidable energetic transition.

Following up on the monitoring of incentives and subsidies given to fossil fuels in Brazil, the Institute of Socioeconomic Studies (Inesc) launched the fourth edition of the study “Know, Assess and Reform”. In 2020, $24.05 billions were given in incentives and subsidies to fossil fuels, which represents 2% of the country’s GDP for the year. These figures are divided into categories (direct expenditures, indirect expenditures, and other waivers) and by modalities (consumption and production). Brazil has established itself among the ten major producers of fossil fuels in the world, and its relevance in the petroleum geopolitics is undeniable, just as, directly and indirectly, in the global emissions by fossil sources.