Brazil's government has approved joining the OPEC+ alliance, a significant coalition of oil-exporting nations, marking a strategic shift for the country. As the world's seventh-largest oil producer, Brazil pumps approximately 4.3 million barrels daily, contributing around 4% to the global oil output. This move comes as President Luiz Inácio Lula da Silva navigates his third term, balancing economic growth with environmental sustainability.
The decision to join OPEC+ follows an official invitation in 2023 and approval by the National Council for Energy Policy. The alliance includes 12 OPEC members alongside 10 other significant oil-producing nations, with Russia being the largest external member. Notably, Brazil joins without binding obligations such as production cuts, distinguishing it from full OPEC membership.
President Lula da Silva, known for his environmental advocacy, has been actively working to curb deforestation in the Amazon and protect Indigenous rights. However, the need for economic development, job creation, and income generation remains a priority. Oil has become a pivotal aspect of Brazil's economy, overtaking soy as the top export product in 2024, accounting for 13.3% of foreign sales.
Despite these economic considerations, Brazil's move into OPEC+ has attracted criticism from environmental groups. Suely Araújo from the Climate Observatory expressed concern over the decision.
"Brazil’s entrance to any OPEC body is another sign of the government’s setback," – Suely Araújo
Furthermore, Araújo highlighted the implications of expanding fossil fuel exploration.
"Opening up new areas for fossil fuel exploration indicates that we are choosing solutions from the past in the face of a huge challenge for the present and the future," – Suely Araújo
As Brazil prepares to host the UN climate summit, COP30, in November 2024, the tension between its environmental commitments and economic ambitions is under scrutiny. The summit is expected to shed light on Brazil's strategies for addressing climate change while pursuing its developmental goals.
