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Towards the Energy Transition: The Emergence of a New Commodity Boom?

Written by Corporate
Published 06/06/2023 às 15:29

Big Oil or Big Energy? Experts discuss the energy transition in Brazil

The shift to cleaner energy is reshaping the energy landscape in Brazil and the world. In the quest to understand how this will affect the economy and the environment, Bloomberg organized a panel with renowned professionals to discuss the impact of the energy transition on corporate profitability, resource allocation and alignment with global climate goals.

Bloomberg and the Energy Transition: An Imperative Discussion

At Bloomberg's headquarters in Latin America, located in São Paulo, Fernando Valle, Senior Energy Analyst at Bloomberg Intelligence, led the debate with the presence of Décio Oddone, Director and President of Enauta; Vitor Burjack, Global Equity and Commodities Analyst at Opportunity and Tiago Cunha, Portfolio Manager at Ace Capital.

Valle pointed out that, despite Brazil's significant advances in the energy transition, there is still a challenge to be faced. “Global energy security and efficiency are still not fully achieved with renewable energy alone,” he said.

The main obstacle in Brazil's journey to become a leader in new energy investments, according to Oddone, is the absence of adequate regulation. “There is no lack of doubts about Brazil's potential for the production of green hydrogen, offshore wind energy and batteries. However, the lack of clear regulation and agility in negotiations may hinder our leadership on the global stage”, pondered Oddone.

The New Energy Configuration and Opportunities on the Horizon

On the other hand, Burjack noted that the market is already signaling a decrease in investment in oil, reflecting the shift to a cleaner energy configuration. “Brazil has the potential to become an important gas exporter in the coming years and we are committed to strengthening this market by 2026,” he said.

Cunha complemented this view, highlighting the accelerated adoption of renewable technologies and the growing restriction on credit based on ESG (Environmental, Social and Governance) criteria. “The richest countries are strongly committed to the energy transition. The reality that we projected for 2030 is already present”, he highlighted.

Vinicius Nunes, climate solutions analyst at BNEF, highlighted the strength of investments in the energy transition, which reached the mark of US$ 1,1 trillion in 2022, according to a survey by BloombergNEF. “Brazil leads investments in renewable energy in Latin America, relying on inexhaustible natural resources such as sunlight and strong winds,” said Nunes.

The event was also attended by Livia Guarda, Bloomberg's relationship manager for asset management companies, and Julio Aparecido, senior specialist in Commodities at Bloomberg. Aparecido emphasized Bloomberg's role in propagating effective market strategies to help companies achieve carbon neutrality efficiently and transparently.

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