Key facts
- Brazil's energy mix was around 50% renewable by 2025, including solar, wind, and bioenergy.
- Energy-related emissions accounted for less than 20% of Brazil's total greenhouse gas emissions in 2023.
- In August 2026, Brazil added 1.68 GW of solar, wind, and thermal capacity to its grid.
- As of August 2026, Brazil has 221 GW of total installed power generation capacity, with nearly 85% from renewables.
- The World Bank approved a $500 million loan for low-carbon industrial commodities and clean fuels in Brazil's Northeast.
- China's State Grid Corporation is undertaking Brazil's largest-ever investment in an electricity transmission franchise project.
Brazil is significantly expanding its renewable energy capacity, driven by favorable national policies and substantial foreign investment, while simultaneously increasing its oil and gas production to bolster energy security and establish itself as a regional energy hub. By 2025, the country had achieved an impressively low-carbon energy mix, with approximately 50% of its energy derived from renewable sources like solar, wind, and bioenergy. This diversification has been supported by long-term energy policies prioritizing energy security. In 2023, Brazil's energy-related emissions represented less than 20% of its total greenhouse gas emissions, a stark contrast to the global average of around 75%.
In August 2026, Brazil integrated about 1.68 GW of new solar, wind, and thermal capacity into its grid, comprising 15 solar plants, three thermal power plants, and two wind parks. This brought the year's total additions to 4.85 GW, with solar power contributing 3.5 GW. The nation's total installed power generation capacity now stands at 221 GW, with nearly 85% sourced from renewables.
Further bolstering its green energy sector, the World Bank approved a new project in May to promote investment in low-carbon industrial commodities, clean fuels, and related infrastructure in Brazil's Northeast region. This initiative includes a $500 million loan as part of a larger $968 million financing package aimed at developing the region's abundant renewable energy resources. The New Development Bank has also financed a significant wind project, the 648-MW Serra da Palmeira Wind Complex in Paraíba, completed by CTG, the Brazilian arm of China Three Gorges Corporation, in October 2025.
Cooperation between China and Brazil in renewable energy and cleantech has intensified, with Chinese companies introducing advanced technologies to support Brazil's sustainable development goals, aligning with strategic priorities of green development, energy transition, and re-industrialization. State Grid Corporation of China recently initiated construction on a 1,468-km ultra-high voltage power transmission project, representing the largest investment in an electricity transmission franchise in Brazil's history.
Ahead of the October presidential elections, business groups are advocating for policies that support green growth. The Brazilian Business Council for Sustainable Development (CEBDS), representing major Brazilian business groups, issued a '2026 Letter to Presidential Candidates' calling for enhanced focus, strategy, and governance to boost Brazil's competitiveness and sustainable development. Discussions at the CEBDS Sustainable Congress covered geopolitics, climate, investment amid uncertainty, water availability, power generation, and food production, emphasizing how Brazil can leverage its sustainability agenda for economic advantage. CEBDS President Marina Grossi highlighted the proposal for a national project that moves beyond commodity sales to offer climate solutions, leveraging Brazil's clean energy, biodiversity, and biofuel leadership.
The upcoming presidential election features a contest between incumbent leftist President Luiz Inácio Lula da Silva and right-wing Senator Flávio Bolsonaro. While Bolsonaro favors oil and gas expansion and increased energy subsidies, he acknowledges the widespread support for green energy and has not ruled it out of his agenda. In December, President Lula directed ministries to prepare an energy transition resolution within 60 days for the National Council for Energy Policy (CNPE), aiming to reduce dependence on oil, coal, and natural gas and establish financing mechanisms, including an Energy Transition Fund funded by the oil and gas sector. Lula has also expressed support for oil and gas within the energy mix and vowed to protect Brazil's oil and critical mineral resources from foreign control.