In a constantly evolving world, the energy transition and the integration of ESG (environmental, social and governance) practices have become imperative for companies and governments. The year 2023 has been remarkable in this sense, with significant advances and challenges still to be overcome.
The Global Cry for Sustainability
The impacts of climate change are increasingly evident. Extreme phenomena, such as heat waves, forest fires and floods, have become frequent, leading to a growing demand for concrete actions. Decarbonizing the economy is seen as a crucial solution, with companies and governments being pressured to adopt “Net Zero” targets.
The Role of Finance Executives
CFOs, traditionally focused on finance, now play a crucial role in the energy transition. They are challenged to understand their company’s emissions, the energy efficiency of their processes and the risks associated with environmental pollution. Furthermore, they must identify opportunities to increase energy efficiency and assess the reliability of sustainability indicators.
Investments and Challenges
Brazil has seen an increase in investments in renewable energy. The new Growth Acceleration Program (PAC) foresees significant investments in energy transition, with the private sector playing a fundamental role. However, regulation is still an obstacle. Legal security is essential to attract investment, and the country still has a long way to go to offer a clear and stable regulatory environment.
Green Hydrogen: The New Frontier
Green hydrogen (H2V) has emerged as a promising solution for the decarbonization of industrial sectors. Brazil, with its electrical matrix rich in renewable sources, is well positioned to lead the production of H2V. It is estimated that the low-carbon hydrogen market will be a main driver of growth in electrical demand in the country.
The energy transition and the adoption of ESG practices are no longer an option, but a necessity. The year 2023 has witnessed advances and challenges in this field. With increasing investments, innovation and collaboration between the public and private sectors, Brazil has the potential to become a global leader in sustainability.