Brazil Set 60-Day Deadline for Fossil Fuel Phase Out Plan

Experts are watching if the the proposal will address Brazil’s planned increase in oil production

Brazil has launched a formal process to design a national roadmap to reduce its reliance on fossil fuels, after its announcement at COP30 to help lead a global shift from oil, coal, and gas. 

President Luiz Inácio Lula da Silva in the new directive instructed key ministries to submit a proposal within 60 days and to include the creation of an Energy Transition Fund, partly financed by oil and gas revenues. The fund would support new investments, cover transition costs, and help finance cleaner energy systems. 

The move comes weeks after COP30 closed in Belem where more than 90 countries came out in support of establishing a roadmap to transition away from fossil fuels. Though the proposal did not make it to the summit’s final decision.

The COP30 presidency pledged to create a roadmap on the issue outside of official negotiations. COP30 president Andre Correa do Lago said recently that an initial draft of the roadmap could be ready by April, when Colombia is set to host a global summit on the topic.

Experts call for fair and orderly transition 

Analysts are watching whether the proposal will address Brazil’s planned increase in oil production, whether the new fund will meaningfully accelerate the transition, and how closely the proposal will track with Brazil’s national climate plan.

Natalie Unterstell, President, Talanoa said, “If this initiative truly shifts Brazil away from fossil-fuel expansion and opens space for a real energy transition, it’s good news. But two questions matter most: how will the government change the current path of growing production, and how will it use oil and gas revenues to fund the transition without extending the industry’s life? The answers will show whether this is real change or just a symbolic move.”

Andrea Sieber who is an associate director for policy and campaigns at 350.org believes that for the process to truly work, it will require participation from civil society, scientists, and workers whose livelihoods are at stake. She said, “ A meaningful roadmap must deliver a fair and orderly transition grounded in science and the public interest. That also means securing adequate, fair and transparent financing to make the transition real on the ground.” 

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