The global emphasis on decarbonization has brought attention to Brazil, the seventh largest GHG emitter, and its potential to lead in the energy transition. This paper employs standard renewable energy scenarios, consolidating academic work and numerical data on affordable sources of clean energy finance in Brazil. The aim is to facilitate the qualitative alignment of financing supply and demand in the Brazilian environment. The study shows that, given current investment mandates and lending criteria, the resources needed for an effective energy transition are insufficient. The current financial landscape is between 1.4 and 2.3 times less than the amount needed. Institutional investors and lenders such as pension funds and banking institutions are hesitant to invest in renewable energy or grid infrastructure due to anticipated policy discontinuities. Moreover, there is a need for additional venture and investment capital to finance early-stage projects of innovative clean energy technologies. This research builds a framework that reflects the role and needs for accessibility of various financing sources and new intermediation channels in the energy transition, outlining how they should be implemented in Brazil.
Complete tool for submission, evaluation and publication of proceedings for scientific events.
