Climate Policy Engagement Analysis
Climate Policy Engagement Overview: Instituto Brasileiro de Petróleo e Gás (IBP) is strategically engaged on climate policy with predominantly negative positions, frequently engaging directly with policymakers to promote a long-term role for fossil fuels in the Brazilian energy mix, despite supporting renewable energy regulation in the country.
Top-line Messaging on Climate Policy: Instituto Brasileiro de Petróleo e Gás (IBP) has limited top-line messaging related to climate action. It supported the UN Paris Agreement and appeared to support action in line with a 1.5°C target in a July 2023 publication. However, in May 2024 the President Roberto Ardenghy emphasized that countries have differentiated responsibilities based on their historical contribution to climate change and did not clearly state support for limiting global temperatures in line with IPCC recommendations. IBP appeared to emphasize the need for climate mitigation measures to have limited short-term impacts on the economy in a January 2023 publication.
Engagement with Climate-Related Policy: Instituto Brasileiro de Petróleo e Gás (IBP) does not appear to support ambitious climate change regulations. In its 2023 Annual Report published in March 2024, IBP appeared to advocate for Brazil’s emissions trading system to include offsets from the RenovaBio biofuel program to compensate for actual emissions reductions. In an April 2023 position paper on the EU Carbon Border Adjustment Mechanism (CBAM), it highlighted issues with the CBAM’s impacts on developing countries and World Trade Organization (WTO) rules.
However, IBP appears to support renewable energy regulation in Brazil. In a comment to a debate with Brazilian policymakers in August 2024, the association supporting regulation to scale up offshore wind energy. In a July 2024 position paper IBP supported a more stringent RenovaBio policy, supporting stricter enforcement of fossil fuel distributors buying biofuel offset credits, to avoid greenwashing. In input to a debate in the Brazilian Commission of Mines and Energy, the association supported policy to scale up and incentivize sustainable aviation fuel production. However, IBP appears to have frequently advocated to weaken the Brazilian ‘Future Fuels’ legislation in 2024 in direct engagement with policymakers, for example, in a debate with policymakers in April 2024 it advocated to include fuels produced with coal and oil in the policy, and did not seem to support mandatory measures to scale up biomethane use in a June 2024 public audience with policymakers.
Positioning on Energy Transition: Instituto Brasileiro de Petróleo e Gás (IBP) strongly and consistently advocated for the continued role for fossil fuels in the future energy mix in 2022-24. The President Roberto Ardenghy has repeatedly advocated for new infrastructure and investments which will lock in unabated fossil fuels, for example, in August 2024 as reported by news outlet Poder360 and as cited by the Sergipe State Government in a press release in July 2024. In 2024, the association engaged directly with Brazilian policymakers to oppose the inclusion of fossil gas and oil in the ‘Selective Tax’ which proposed to designate particular products as harmful to the environment, for example, in a presentation to the Ministry of Mines and Energy in February.
IBP appears to support scaling up biofuel production in Brazil, however it accompanies this support with advocacy for continued oil and fossil gas use, for example, as stated by its President in June 2024. In its 2023 Annual Report published in March 2024, the association stated support for carbon capture and storage to reduce emissions from fossil fuel facilities, but did not state a position on the need to transition the energy mix away from fossil fuels.