Energy transition: risk or opportunity?

Or hired energy transition is in vogue in Brazil, which does not mean that more in-depth knowledge on the subject is effectively disseminated, nor that the concept is completely well understood, or even well-regarded in the market.

This is exactly why it is necessary to define what the energy transition is and why it represents a business opportunity.

From a definitional point of view, we understand that the energy transition describes the transition from energy matrix focused on fossil fuels for a low carbon emission, based on renewable sources, in addition to the focus on energy efficiency and investments in technology.

From an analytical point of view, when thinking about ESG, on a global scale, it is understood that it is a movement towards take care of the planet and which uses as a tool the reputational aspect of the companies that adhere to it.

With a lack of knowledge and a regulatory gap, there are several companies in Brazil that commit “greenwashing”, that is, they talk green without acting green, which even constitutes a crime in some countries abroad, such as France. And this is, in part, why the efforts of the green movement still cause fear in the business world.

In this context, the energy transition is effectively perceived by many organizations as a risk, an interpretation that needs to change, as the process is ongoing and is irreversible, precisely because energy accounts for around 78% of global emissions.

And with that, the transition becomes a barrel of opportunities for the same companies that fear it. In practical terms, I am talking here about care for the environment associated with significant cost reduction in the medium and long term, not to mention the benefits of the image of an ecologically responsible company in the public eye.

Of course, this is not a simple transformation, overnight, but it is possible to green attitudes in a planned way, with a view to a more sustainable business.

It is about looking at the operation as a whole and understanding that, yes, the energy transition is advantageous at different levels, including the economic one. It is comprehensive and does not just involve electrical energy, for example.

There are countless consumption reduction and optimization solutions available, including gas, steam, heat and other utilities that are crucial to the operation of companies. There is a strong global movement seeking a low-carbon economy, with goals that include the energy transition, through renewable sources.

In Brazil, we have a very fertile base, with an abundance of natural resources and the ability to make the country a protagonist in this movement. We even have resources to spare, in addition to domestic economic needs, which has attracted attention from the rest of the world towards us.

For example, the European Union has just announced an investment of €2 billion to develop green hydrogen industry in Brazil, with the goal of importing 10 million tons per year by 2030.

Furthermore, in the new government, which has industry as the guiding principle of economic policy, there is talk of green industrialization. With highly competitive sources, it is possible to replace processes, in order to reduce emissions and offer lower costs for the industry and consequently make it more competitive.

To exemplify this idea, I venture a comparison with artificial intelligence. Executives and corporations in general seem scared about the possibility of technology taking their place.

In the age of AI, many questions are raised about the limits that these tools can reach or exceed. But when analyzing and understanding the infinite possibilities presented by AI as a tool, it is possible to realize that every fear can be transformed into an opportunity.

The same happens with the energy transition, which has even seen AI as a facilitator for its implementation, for example in digital platforms for predicting the energy consumption of business units.

Therefore, it is notable that the energy transition is a path of no return. Companies must be attentive to the opportunities that open up at this early stage, as the transition will not stop.

It is possible to position yourself to take advantage of this wave or wait to be swallowed by it. For now, it is still a choice and corporate strategies are precisely made of choices (or non-choices).

As Seneca said, “for those who don’t know where to go, any path will do”. I formulate my vote so that each entrepreneur can see the energy transition as an opportunity for their business and so that a new cycle of prosperity based on sustainable business can open up for our country.

The opinions and information expressed are the sole responsibility of the author and do not necessarily represent the official position of the author. Canal Solar.