The energy transition is the process of migrating from energy production based on fossil fuels, such as oil and coal, to a cleaner generation, investing in renewable sources, such as wind, solar and biomass generation.
Part of the large Brazilian companies have already understood the importance and relevance of ESG goals within organizations. Increasingly, environmental, social and governance issues become priorities with internal changes and even compensation programs for executives linked to the achievement of goals.
The latest report by the Intergovernmental Panel on Climate Change (IPCC) states that the mitigation measures needed to tackle climate change are urgent.
The IPCC is a UN climate advisory body and was created in 1988 by the United Nations Environment Program and the World Meteorological Organization. Its objective is to monitor and disseminate relevant research related to climate change.
In order to decarbonize the energy matrix, many countries create a carbon market with the objective of allowing the purchase and sale of excess credit for emission reductions between companies or between companies and nations. This makes it easier for countries to meet their reduction targets.
With the use of fossil fuels, the planet has already warmed 1.2ºC. That's why the energy transition is so important to curb climate change.