Brazil environment minister demands ‘ceiling’ on oil production

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Brazil must consider capping oil production and exploration, the country’s environment minister has said, casting her in opposition to the government’s own plans of turning the nation into one of the biggest crude producers by 2029.

“One issue that will have to be faced is the issue of limits, a ceiling for oil exploration. It is a debate that is not easy but that oil-producing countries will have to face,” Marina Silva told the Financial Times.

Her comments reflect a tension in President Luiz Inácio Lula da Silva’s efforts to play both sides of the climate debate — burnishing Brazil’s environmental credentials in protecting the crucial ecology of the Amazon, while supporting oil drilling for its economic benefits. The energy ministry has set a goal of increasing output from 3mn barrels a day last year to 5.4mn by the end of the decade.

Born in the Amazon rainforest and raised by impoverished rubber tappers, the 65-year-old Silva is today among the world’s most respected environmentalists. Her appointment as minister earlier this year by President Lula was hailed as a symbol of Brazil’s commitment to ecological protection and the green transition.

But her mission faces obstacles even within the leftwing administration, notably from the energy ministry and state-controlled Petrobras, which are both hoping to harness new giant offshore fields to increase crude output.

The energy plan would make Brazil the world’s fourth-largest producer, ahead of Iran, Canada and Kuwait. Earlier this month, the country joined the Opec+ group — which comprises the Organisation of the Petroleum Exporting Countries plus its allies — although Lula has insisted its status will remain that of an observer.

“Brazil is an oil producer. This is a debate that will have to be had, even in the context of wars. We are committed to the goal of tripling renewable energy. But all this cannot be done if we do not discuss the issue of limits to exploration,” Silva said.

Alexandre Silveira, Brazil’s energy minister, told the Financial Times that he saw “no contradiction” between the country’s oil and gas targets and its aspiration to lead the world’s transition to green energy. He said oil revenues would help finance the shift.

Brasilia’s focus on fossil fuels, however, has prompted scepticism internationally, especially as Lula regularly asks western nations to shoulder a larger financial burden to protect the Amazon rainforest and the global environment.

“Brazil said one thing, but did another at the COP28 summit [in Dubai]. It is unacceptable that the same country, which claims to defend the goal of limiting global warming to 1.5 degrees, is announcing its alignment with the group of the largest oil exporters in the world,” said Leandro Ramos of Greenpeace Brasil.

Environment minister Silva added: “We cannot give up on the energy transition. Energy security is necessary, but we also must think about transition. Both things must happen.”

Lula has said that Brazil’s involvement in Opec+ would be focused on convincing wealthy oil nations to invest in alternatives.

In the first nine months of this year, his government has succeeded in reducing illegal deforestation in the Amazon by about 50 per cent compared with the same period last year. The growing destruction of the rainforest under the previous Jair Bolsonaro administration had sparked international censure.

Silva said, however, that she would not claim victory.

“We have sectoral goals. It’s not just deforestation. It is also energy, industry, transport, land use and agriculture. All these have CO₂ reduction targets,” she said. “We cannot be resigned to results already achieved because no matter how good they are, they will need to be improved.”

Additional reporting by Beatriz Langella