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Organizations Demand A Schedule From The Government To End Oil Auctions In Brazil And Warn Of Economic, Environmental, And Social Risks If The Energy Transition Does Not Move Forward.
The future of oil in Brazil has once again come into conflict with the environmental agenda. While the federal government races against time to deliver an energy transition plan, civil society organizations raise the alarm: without clear deadlines, the country may remain trapped in a model that threatens both the environment and the economy.
The plan was requested by President Luiz Inácio Lula da Silva after COP30 and needs to be presented by the ministries by February.
However, so far, the content remains shrouded in mystery. Amid this lack of transparency, over 130 organizations gathered at the Climate Observatory decided to take action.
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Direct Pressure On The Government Exposes Lack Of Dialogue
The entities delivered to the federal government a detailed list of recommendations to guide the country’s energy policy in the coming years.
The goal is clear: to reduce dependence on fossil fuels, especially oil, and accelerate Brazil’s entry into a low-carbon economy.
However, the process has been marked by criticism. According to the group, there has not been enough dialogue with civil society so far.
“There is not much clarity on what is being built. The short deadline does not allow for broad dialogue with society, but a more participatory process has been promised later. Our proposal can also serve as a reference for the COP presidency at the international level in the coming months,” said the Energy Transition leader at WWF Brazil, Ricardo Fujii, in a conversation with journalists.
End Of Oil Auctions Becomes The Most Explosive Point
Among all the recommendations, one is considered the most controversial: the creation of an official calendar for ending oil auctions in Brazil. The proposal suggests that the country should meet its domestic demand only with existing wells, without opening new areas for exploration.
Additionally, the Climate Observatory proposes that oil production be reduced to the minimum necessary, abandoning the logic of maximum expansion that has dominated the sector for decades.
The group also wants to prohibit exploration in areas considered sensitive, such as the Equatorial Margin and the Mouth of the Amazon, areas that have been contested by economic and environmental interests.
Subsidies, Petrobras, And Assets That Could Become Scrap
The document goes beyond exploration. It directly impacts the economic model that supports oil in the country.
The entities advocate for the review and gradual elimination of subsidies for fossil fuels, which currently consume billions of public funds.
Another sensitive point is Petrobras. The report recommends a deep reformulation of the state company’s strategy, with more investment in renewable energies and less dependence on oil.
According to the Climate Observatory itself, up to 85% of Petrobras’ assets could become obsolete in scenarios aligned with the global goal of limiting the planet’s warming to 1.5°C.
In practice, this means platforms, refineries, and wells that could become stranded assets, without economic value.
Social Impacts And The Fear Of Unemployment
For the organizations, abandoning fossil fuels cannot mean abandoning workers. Therefore, the plan suggests the creation of a national program for decommissioning fossil infrastructures, accompanied by professional retraining and the generation of green jobs.
“When we talk about ending the use of coal for electricity generation, for example, we are talking about only 1.3% of the electric matrix. The most important thing is to have planning for the affected regions and guarantee income and alternative work for the workers. Maintaining these sources is more harmful. Nuclear energy, in addition, is very expensive and diverts resources that could be used in the transition,” explains Suely Araújo, public policies coordinator at the Climate Observatory.
Do you think Brazil should really set a date to end oil auctions, even if it affects jobs, prices, and the economy? Or is the proposal unrealistic?
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