Passarinho promises to block new incentives in the CDE and Silveira says "we don't need to subsidize renewables"

With collaboration by Ericka Araújo

The new president of the CME (Mines and Energy Commission) of the Chamber of Deputies, Joaquim Passarinho (PL-PA), who took office in February of this year, stated that he intends to block proposals that expand incentives financed by the CDE (Energy Development Account).

Today, the sector fund is used to finance public policies in the electricity sector, especially renewable energy projects and social programs. The statement was made during a committee meeting held on Tuesday (10).

According to Passarinho, under his leadership the CME has already begun rejecting projects that increased the CDE's burdens. "This committee's commitment is that we will not vote on any exemptions or increases to the CDE. In the last session, we rejected three projects that increased the CDE, and we have 20 more on the agenda," he said, implying that he will do everything possible to ensure that none of them are approved.

The parliamentarian also criticized the practice adopted by other parliamentarians of creating sectoral benefits financed by the fund. “It’s very easy for me to create benefits using other people’s money. I come here, benefit a category and push it into the CDE [Commission for Economic Development], which I don’t know where it comes from, and it’s already charged to each of us,” he stated.

In recent years, the growth of incentives for the CDE (Energy Development Fund) has been the subject of debate in the National Congress. The discussion gained relevance after the enactment of Provisional Measure 1304, at the end of 2025, which established a limit for subsidies in the electricity sector and stipulated the freezing of the CDE budget from 2027 onwards.

In the same session where Passarinho made the statements, the Minister of Mines and Energy, Alexandre Silveira, reinforced the congressman's speech. "We can no longer, nor do we need to, subsidize renewables. The Brazilian people cannot pay any more subsidies for renewables; it no longer makes sense to pay subsidies for renewables," said Silveira.

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