An aerial photograph of Rio de Janeiro at dusk.

    Core area “Climate and energy, just transition” Fostering renewable energy and sustainable urban development

    Brazil's climate and geography have endowed it with enormous energy resources and huge potential for the development of renewable energy. The share of renewable energy is about 47 per cent in final energy consumption. This means that Brazil is already a world leader in renewable energy. Yet high investment will be needed in the coming years to further increase the share of renewable energy while demand is rising, and to secure reliable energy supplies. The share of Brazilians living in cities is 88 per cent, and one in four people in cities lives in informal settlements, which are particularly vulnerable to extreme weather events such as floods and droughts. This means that cities play a key role – both for climate action and for fighting poverty and inequality. Germany is supporting Brazil's transformation towards carbon-neutral, climate-resilient, socially inclusive energy supplies and urban development.

    At present, Brazil covers most of the national energy demand through hydropower. However, in the past there have been repeated electricity outages during dry periods and at times of increased energy demand, and massive price increases as a result of switching to fossil fuels, which are expensive and harm the climate. This vulnerability highlights the need for diversifying energy sources. The expansion of energy generation from renewable sources such as wind, solar power and green hydrogen and the improvement of energy efficiency are therefore becoming more and more important.

    The capacity of the transmission network has not kept pace with developments in recent years. Brazil's sheer size and the fact that some areas are very sparsely settled mean that expanding and managing the transmission network is a highly complex matter. The Amazon region still has isolated power generation systems based on diesel generators, with negative implications for the environment and for supply security.

    Even though the share of renewable energy in Brazil's energy mix is high, the country is faced with the challenge of providing increased amounts of sustainable energy to meet rising demand, especially for transport, industrial production and heating, and of investing in grid expansion and stability.
    Brazil is still a long way from achieving carbon-neutral and climate-resilient urban energy supplies. Industrial production and transport account for over 60 per cent of energy-related greenhouse gas emissions. Most of these emissions are generated in urban areas. At the same time, cities – and especially informal settlements, partly due to their location – are particularly vulnerable to the impacts of climate change. As a consequence of the increasing climate disasters of the last few years, more attention is now being given to climate change mitigation and adaptation, including in urban areas.

    Objectives of cooperation

    In order to improve the exchange of expert knowledge, cooperation between public and private sector players in the energy sector is being strengthened. In addition, GIZ is working with vocational training facilities and with universities in order to develop and expand initial and ongoing training programmes in the field of renewable energy and energy efficiency. Furthermore, support is being prepared for a guarantee fund to be set up at the Brazilian development bank. The intention is that it will be used to promote investments by small and medium-sized enterprises aimed at increasing their energy efficiency. This will make a contribution towards achieving climate goals on the one hand and ensuring economic stability and protecting jobs on the other.

    Processes and project examples

    • The BMZ has assisted Brazil from the beginning in creating a conducive environment for the expansion of solar and wind energy generation. This support has been geared, among other things, towards the development and implementation of appropriate legal frameworks, the piloting of the first wind energy auction, and investments in the country's first solar energy systems and wind parks. Brazil has now become the country with the fastest-growing wind and solar energy sector in the world.
    See also
    • Image symbolising hydrogen (H2): circles in different sizes, each surrounding the chemical molecular formula of hydrogen, H2

    Green hydrogen and Power-to-X products

    • Brazil now wants to use its wealth of renewable energy in order to move forward on producing green hydrogen. The BMZ is supporting these efforts, among other things, through the establishment of pilot facilities, training labs and technical training centres.

    • Most Brazilians are living in cities. Cities play a key role for climate action, for instance in the transport sector. There is great potential in Brazil for shifting transport towards electric energy. In Latin America's largest metropolis, São Paulo, the BMZ has provided loans to help finance the metro system, which runs on renewable energy, and to introduce electric buses.

    • The current Brazilian government has decided to make the improvement of living conditions in slums a priority. The BMZ is supporting these efforts, for instance by facilitating exchange of experience and expert advice in 54 cities as they develop innovative solutions for improved housing, better water supply and sanitation, and more climate action. These measures are benefiting 1.3 million people.

    As at: 07/11/2025