Four leaders of energy companies operating in Brazil said this Wednesday, in a webinar as part of CEBDS's ReVisão 2050 series, that it is now necessary to accelerate the pace and scale of the changes needed to decarbonize the economy. The creation of a carbon pricing mechanism was highlighted as a solution.
Rio de Janeiro, June 24, 2020 – Four leaders of major energy companies operating in Brazil highlighted this Wednesday that Covid-19 heightens the sense of urgency in the transition of business models to a clean economy. Changes are underway, but the pace and scale needed to promote broad, safe, and reliable access to different energy sources and decarbonize the economy must be accelerated. The statements were made in webinar from the ReVisão 2050 series, promoted by the Brazilian Business Council for Sustainable Development (CEBDS).
André Araujo (Shell Brazil), André Clark (Siemens Energy Brazil), Solange Ribeiro (Neoenergia), and Tiago Alves (Sunew) participated – alongside Heloísa Borges Esteves, director of Oil, Gas and Biofuels, at the Energy Research Company (EPE) – in the fifth meeting in the series that aims to plan and build a vision of the post-pandemic future with a view to 2050.
"Business leaders are clear that these changes are inexorable and that there are also many opportunities for business development in a new economic model, in which the planet's limits are respected," said Marina Grossi, president of CEBDS and moderator of the debate.
André Clark, President and CEO of Siemens Energy Brazil, understands that it's necessary to go beyond decarbonizing the energy matrix. "The scale of this change is greater. Energy transformation is a unique opportunity to promote high-quality economic growth. And companies have a huge responsibility in this context," said Clark.
"What we have now is a very strong sense of urgency," emphasized the CEO of Shell Brazil. For Araujo, although Brazil has a clean and diversified energy matrix—which provides a global competitive advantage—there is still much to be done. "We cannot become complacent. Brazil has a 'pre-salt' layer of oxygen. An opportunity that requires an economic enabler (carbon pricing mechanisms)," Araujo stated.
Neoenergia's deputy president, Solange Ribeiro, also advocated for the adoption of market instruments that price Brazil's environmental values. "Some changes necessarily involve public policies and regulatory instruments. This is what will truly enable the development of the energy sector," said Ribeiro. Furthermore, the executive noted that demands from investors and consumers now have a direct impact on business decision-making. "It's no longer optional; it's mandatory. The post-pandemic economic recovery process necessarily involves 'green'," she added.
Sunew's CEO also highlighted the development of carbon pricing mechanisms as strategic for Brazil. "Systemic transformations also involve investments in education, so that people can be empowered and lead the transformations, and by disclosure, which is the culture of information and transparency. It's necessary to take corporate information beyond annual reports," added Alves.
The director of Oil, Gas, and Biofuels at the Energy Research Company (EPE) stated that energy demand in Brazil is projected to grow through 2050, and that this quest for energy depends on reducing carbon emissions. "It's important to note that investments in renewables are remaining resilient even during the pandemic," said Heloísa, advocating for efforts to align public and private sector agendas. "Companies won't lead these changes alone. The National Energy Plan is an important guide to promoting the best use of our resources with competitive market designs that allow us to navigate these energy transformations," the executive stated.
Next agenda
With the coronavirus crisis, CEBDS is holding discussions with its member companies and multisectoral experts on business resumption and long-term planning, revisiting the commitments defined in the Brazil Vision 2050 document, launched at Rio+20 in 2012. Webinars are also planned to discuss Biodiversity and Forests, Circular Economy and Cities, with the aim of thinking about the post-coronavirus future.
The webinars feature representatives from the nonprofit sector and are held biweekly on Wednesdays from 8:00 a.m. to 9:30 a.m., free of charge and open to the general public. The Vision 2050 Webinar series is sponsored by Vale and Itaú, and supported by SESC, Sitawi, KPMG, and ERM.
