Brazil recently passed a groundbreaking energy bill favoring biomethane over traditional natural gas, aiming to cut greenhouse gas emissions by at least 1% by 2026. This shift towards renewable energy sources poses economic challenges for industries reliant on natural gas due to increased costs associated with biomethane.
The move towards integrating more biomethane into Brazil’s energy mix is driven by environmental goals, but comes with a hefty price tag. Brazilian consumers may see a yearly increase of R$658 million ($116.5 million) in gas costs to meet the decarbonization target.
Petrobras, the national oil giant, plans to absorb some of these costs to shield consumers from price hikes, while also investing in biomethane production to meet decarbonization targets and align with global environmental standards.
The energy transition in Brazil is a delicate balance between sustainability and economic impact, as industries like steel, glass, and chemicals fear rising operational costs. This legislation marks a progressive step towards reducing carbon emissions and tests Brazil’s industrial sector’s adaptability in the evolving global energy landscape.
