Climate change issues have gained prominence globally since the 1990s with the implementation of significant governance and monitoring instruments, such as the United Nations Framework Convention on Climate Change (UNFCCC), the Intergovernmental Panel on Climate Change (IPCC), and the Conference of the Parties (COP). From this international coordination emerged landmark agreements for the environmental agenda, such as the Kyoto Protocol in 1997 and the Paris Agreement in 2015. However, the agenda gained momentum in the 2000s and is currently a central theme in policymaking at both international and national levels. Naturally, the commitment to addressing climate change varies from country to country and government to government, depending on their respective agendas and objectives.
Brazil has positioned itself as a collaborative actor in these agendas, although the establishment of an institutional framework to address the issue only occurred in 2007 with the creation of the Interministerial Committee on Climate Change and the Special Joint Committee on Climate Change of the National Congress. Despite these efforts, significant gaps exist between proposed objectives and actual outcomes, exacerbated by the constantly changing institutional framework.
This paper evaluates the recent evolution of the Brazilian federal budget concerning climate change and the transition to a sustainable, low-emissions economy. It discusses the importance of financing for this transition and the institutional challenges that may hinder its progress. The analysis utilizes data from the Federal Budget Panel provided by the Integrated Planning and Budget System (SIOP), covering the period from 2015 to 2024 and spanning the Plano Plurianual administrations of the second Dilma government, the Michel Temer administration, the Bolsonaro government, and the recent plan of the third Lula government.
Preliminary results indicate discontinuities in both temporal and allocation strategies, revealing a fragmented allocation of resources. While there has been a significant increase in initial appropriations in 2024, it is not proportionally reflected in actual disbursements, particularly in investment categories. Furthermore, there is a relative decline in investments related to climate change, particularly in the energy sector, with no investments allocated in the energy function in 2024.
In conclusion, the budget allocated for addressing climate change and transitioning to a low-carbon economy is crucial for sustainable economic development and social well-being. However, challenges such as low investment engagement and coordination issues hinder progress. Adequate budget allocation and effective resource management are essential to ensure the success of these initiatives and mitigate the long-term costs associated with climate crises.
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