The possibility of attracting investments of up to R$ 500 billion in the coming decades places Brazil in a strategic position on the global path of energy transition and the circular economy.
This amount, estimated by ABREN (Brazilian Association of Waste Energy), is directly linked to the maturation of trade relations between Mercosur and the European Union, which should facilitate access to financing and technologies essential for the biogas, biomethane and waste-to-energy (WtE) sectors.
The projection was the central point of the association's participation in the launch of the Joint Parliamentary Front in support of the European Union-Mercosur Integration, held this week at the National Congress in Brasília.
The event celebrated the new steps toward implementing the treaty originally signed in January 2025, which establishes one of the largest free trade zones on the planet, encompassing a market of 718 million people and a combined GDP of approximately US$22 trillion.
Technology and trade exchange
According to ABREN, the main driver of this growth will be the drastic reduction of trade barriers between the blocs.
With the new customs regime, the import of high-efficiency industrial equipment and cutting-edge European technologies will make the implementation of waste-to-energy plants more financially viable in Brazil.
In addition to modernizing the national infrastructure, this flow should strengthen local production chains, generating skilled jobs in engineering, plant operation, and environmental services.
Yuri Schmitke, CEO of ABREN, highlighted that Brazil has one of the greatest potentials in the world for this market and that the agreement will allow "unlocking investments" and positioning the country as a protagonist in decarbonization.
To make this scenario viable, the association has intensified institutional partnerships with chambers of commerce in Italy, Germany, Switzerland, and Austria.
Climate benefits and circular economy
Beyond the financial boost, the initiative is crucial for Brazil's environmental agenda. Energy recovery allows for the diversion of massive volumes of waste that currently overload landfills and dumps.
By transforming this waste into electricity or renewable fuels, the country directly combats methane emissions — a greenhouse gas whose polluting potential is up to 86 times greater than that of carbon dioxide (CO₂) over a twenty-year period.
The valorization of waste also integrates the logic of the circular economy by transforming what would be discarded into new industrial products and energy. According to the OPENThe development of this market is crucial to significantly reducing the environmental impacts of solid waste management in Brazilian cities.
Decarbonization of heavy fleets
Another significant benefit lies in the replacement of fossil fuels in the transportation sector. Biomethane produced from waste emerges as the ideal alternative to diesel and natural gas in trucks and buses.
This switch not only contributes to reducing emissions from heavy vehicle fleets and industries, but also increases the country's energy security by diversifying renewable fuel sources.
The current scenario is seen as strategic for accelerating the modernization of waste management in Brazil. With the support of the international agreement, the expectation is that the country will be able to convert its enormous potential for biomass and urban waste into a driver of industrial development and the attraction of foreign capital.
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Good morning. I'm from Maringá. They've already tried generating energy from urban waste, and the mayor was attacked, with people saying the city would turn into a giant garbage chimney. I would like more information about the possibility of conducting a study for this project here in Maringá (production of 9.500 tons of waste per month).