Guedes: Market economy and democracy make Brazil a reliable country

As a western democracy structured in a market economy and located close to European and North American markets, Brazil can benefit from the increasing search of other countries for energy and food security. But to maintain this position, it is essential that the country also stands out as a green power that preserves environmental resources, and makes progress in the transition to clean sources of energy.

These thoughts were expressed by Brazil´s Minister of Economy Paulo Guedes on Wednesday (May 18), during the Global Carbon Market Congress – Decarbonization & Green Investments. Ministers, secretaries, businessmen, and authorities participate in the event at the Environment Museum, in the Botanical Garden of Rio de Janeiro.

“Brazil is a green, energy and food power, and the world already knows that,” said the minister in his speech. He pointed out the relevance of its role in the relationship with other countries, in a post-COVID-19 pandemic context, followed by a war that has altered global production chains.

According to him, the pandemic has made the world plunge into a digital economy. The war between Russia and Ukraine has resulted in “a much more urgent problem for Europeans: both the energy supplied by Russia and grain supplied by Ukraine are lacking,” the minister said.

Proximity and trust

Guedes added that this context has shown the world the relevance of two "key concepts" reinforced by the US and Europe: nearshore - which is the search for business with geographically close countries, in order to facilitate logistics; and friendshore - a concept related to more reliable countries.

“We are close, from a logistical point of view, and at the same time we are reliable because we are a democracy with a market economy,” Guedes added.

The minister also said another factor that interests other economies is related to the environment. For him, it is essential that the country promotes the transition to a more sustainable economy from an ecological point of view.

In this sense, Guedes pointed out that Brazil´s image has changed. The minister's perception is based on conversations held with foreign authorities. “We used to be seen as a problem [from the climate point of view] for the world, perceived as polluters. That has changed,” he said.

During these conversations, Guedes has reiterated the Brazilian intention of “taxing pollution, applying taxes to those who pollute; of stimulating innovations that use depolllution technologies; and of rewarding those who preserve environmental resources”.

Carbon credit

Large economic and financial groups abroad are increasingly concerned about sustainability, as stated by the president of the Brazilian Central Bank Roberto Campos Neto, who also participated in the Global Carbon Market Congress. According to him, Brazil can benefit a lot from the carbon credit market.

Clean energy and agriculture

The Central Bank president added Brazil has been standing out for its potential for clean energy and agriculture, and also for its sustainable investments.

In this process aimed at developing the carbon market, Campos Neto pointed out the need to create investment funds focused on governance policies on the environment.