The institutional framework builds on 2024 directives from Brazil’s National Energy Policy Council (CNPE), which established decarbonization guidelines for oil and gas exploration and production activities. Those directives specifically target methane emission reductions in line with the Global Methane Pledge, to which Brazil has been a signatory since 2021. The pledge commits participating countries to collective efforts aimed at reducing global methane emissions by 30 percent from 2020 levels by 2030.
Methane regulation in Brazil’s oil and gas sector intersects with broader industrial decarbonization efforts. The country recently secured approval from the Climate Investment Funds for its Industrial Decarbonization Investment Plan, becoming one of the first among seven selected nations to complete this stage. The plan directs $250 million toward decarbonization projects in iron and steel, cement, chemicals, and fertilizers—sectors accounting for approximately 65 percent of Brazil’s industrial emissions. The funding is expected to mobilize over $3 billion in co-financing, including $1.36 billion from private sources.
The timing coincides with Brazil’s submission of an updated Nationally Determined Contribution (NDC) ahead of COP31 in Turkey, raising its 2035 emissions reduction target from 59 percent to 67 percent compared to 2005 levels. The enhanced ambition reflects the government’s broader commitment to achieving carbon neutrality by 2050, with energy sector emissions increasingly scrutinized as part of that trajectory.
This article was curated and published as part of our South American energy market coverage.
