The Minister of Environment and Climate Change, Marina Silva, defended this Tuesday (14), during the Pre-COP 30 debates, in Brasília (DF), that public subsidies aimed at renewable sources exceed those granted to fossil fuels.
"Today, these subsidies range from $1,5 trillion to $7 trillion, depending on the methodology. In contrast, subsidies and investments in renewable energy are much smaller: around $170 billion in G20 countries, or $500 billion if we include private investment," she said.
In the case of Brazil, data from Inesc (Institute of Socioeconomic Studies) reveal that fossil fuels account for about 82% of subsidies public destined for energy in Brazil.
For every R$1,00 invested in renewable sources, the Federal Government allocates R$4,52 to incentives for the oil and gas industry. In 2023, total subsidies to the energy sector amounted to R$99,8 billion, of which R$81,7 billion went to fossil fuels and only R$18 billion to renewables.
For Cássio Cardoso Carvalho, political advisor at Inesc, expanding investment in renewable energy generation is essential and should be given greater importance by the country. "But until the Federal Government reviews the values of this type of...Oil Exchange' for the sector, the energy transition remains hampered,” he said.
Renewables in the sights of distributors
Even with this difference, incentives for renewable sources have been the target of criticism from companies that hold a large part of the monopoly in the national electricity sector, according to complaints from associations.
According to the entities, distributors and other business groups argue, for example, that subsidies for DG (distributed generation) — financed by the CDE (Energy Development Account) — impact consumer tariffs and may generate imbalances in the system.
In contrast, the associations emphasize that the expansion of renewables has contributed to reducing transmission losses, decreasing dependence on fossil fuels, and promoting the decentralization of generation, factors considered strategic for the country's energy security and climate transition.
MP 1304 / 2025
In recent weeks, the topic of subsidies has returned to the center of discussions in the National Congress with MP (Provisional Measure) 1.304/2025, which proposes mechanisms to limit the growth of the CDE and create the ECR (Resource Complement Charge).
This new charge aims to ensure that the CDE does not exceed a budget ceiling — if this occurs, the ECR would be activated to cover the difference, potentially transferring additional costs to the benefiting consumers.
The proposal is viewed with concern by representatives of the solar and wind sector, who believe that the measure could alter the regulatory balance established by Law 14.300/2022 — the Legal Framework for DG, which ensures predictability and legal certainty for new investments.
Behind the scenes, distributors and business groups have been defending the creation of the ECR, claiming the need to control sectoral costs, while the renewable energy segment warns of possible impacts on consumers who have invested in their own systems, especially solar energy.
Impasse on the eve of COP 30
It is in this context that Brazil is preparing to host COP 30—the 30th edition of the United Nations Climate Change Conference. The event, which will bring together world leaders, scientists, and civil society representatives from November 10 to 21, 2025, in Belém, Pará, will address topics such as climate finance, energy transition, and biodiversity preservation.
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