Decarbonizing the Growth Model of Brazil: Addressing Both Carbon and Energy Intensity

Abstract

Decarbonization of the world economy involves two challenges. The first is to find new carbon-neutral sources of energy which can reduce the reliance on fossil fuels. Solar, wind, and geothermal energy are the main paths to this energy revolution in most developed and emerging countries. Brazil has a great advantage in this respect as already about half of its energy supply comes from biomass and hydroelectricity. However, economic decarbonization also concerns the use of energy. In this respect, Brazil lags behind. Although the carbon intensity of the Brazilian economy has decreased, its energy intensity is rising. This puts into question the efficiency and ultimately the competitiveness of the Brazilian industrial economy itself. This article analyzes data from the state of São Paulo, the most industrialized state of Brazil, to discuss ways of decarbonizing an emerging economy.