This publication was coordinated by Barbara Brakarz and Eduarda Zoghbi of the Inter-American Development Bank.

Opportunities for Meeting Brazil’s Nationally Determined Contribution and Stimulating Growth for a Low-Carbon Economy

To emerge from its deep recession, Brazil urgently needs to develop strategies and policies that promote growth and reduce poverty. At the same time, the nation’s Nationally Determined Contribution (NDC) within the Paris Agreement represents an ambitious commitment to reduce greenhouse gas (GHG) emissions by 2030.

This report is based on economic and policy analysis by Climate Policy Initiative (CPI/PUC-Rio) in Brazil in cooperation with the Inter-American Development Bank (IDB), Brazil’s Ministry of Planning, Development and Management (MP), and the World Wildlife Fund (WWF) by virtue of the technical cooperation project BR-T1377 InfraInvest: Sustainable Infrastructure for Brazil financed by the IDB. The report presents new evidence for policymakers and stakeholders. The analysts look at three sectors that are critical to creating a greener future for the nation: land use, energy, and transportation. For all three sectors, CPI delivers one message: promoting economic growth aligns with achieving Brazil’s climate commitments. The opinions expressed in this work are those of the authors and do not necessarily reflect the views of the IDB, its Board of Directors, or the countries they represent.

The report indicates that Brazil has the potential to drive green economic growth by using its lands more productively, scaling-up action in renewable energy and energy efficiency, and reducing the time cargo spends in transit and Brazilian commuters waste in traffic.

This report provides an economic analysis of the implementation of Brazil’s NDC, maps the institutional and policy arrangements for each sector, and outlines evidence-based strategies that will deliver low-carbon growth to the nation and its citizens. What is needed are significant investments and consistent policies. The opportunity cost of doing nothing will be higher than the cost of new investments. The returns from new climate-friendly investments and policies will outweigh their expense and effort: investing now will propel Brazil’s economy into a growing, more productive, and sustainable future.