Brazil: Environmental Issues, Policies and Clean Technology

Brazil is home to over 203 million people, making it the seventh most populous nation​. The country has many different landscapes, which come with both environmental challenges and opportunities. Around 87.4% of Brazilians live in cities, leading to pollution and waste management challenges in urban areas.

Brazil's important ecosystems, such as the Amazon and the Atlantic Forest, influence its environmental policies and goals for clean technology. In recent years, Brazil has experienced significant changes, including new political leadership, rapid growth in clean energy, and renewed commitments to stop deforestation.¹

Image Credit: Valentin Ayupov/Shutterstock.com

Deforestation and Biodiversity Pressures in Brazil

Deforestation remains Brazil’s most urgent environmental issue. The Amazon spans nearly 60% of Brazil’s territory and has been hit with illegal logging, cattle ranching, and mining.

From 2019 to 2022, deforestation reached levels unseen in over 10 years, partly because of weak enforcement under the previous government.²

Video Credit: BBC Earth/YouTube.com

However, in 2023, things changed. Preliminary satellite data from Instituto Nacional de Pesquisas Espaciais (INPE) showed that deforestation in the Amazon dropped by about 50% in 2023. This is the lowest level of deforestation seen in five years​. This dramatic improvement has been internationally recognized.

Norway pledged R$250 million to the Amazon Fund in 2023, restarting donations that were paused under the previous government. Brazil also reaffirmed its goal to stop illegal deforestation by 2030 at COP28.^3,4

Beyond forests, Brazil's biodiversity is facing significant threats. The latest report from Instituto Brasileiro de Geografia e Estatística (IBGE) shows that more than 2,800 species are threatened.

The Atlantic Forest is the most at risk, with 2,845 species, followed by the Cerrado with 1,199 species, and the Caatinga with 481 species. At the same time, there are encouraging developments. The number of jaguars in the Upper Paraná Atlantic Forest grew from 40 to about 90 between 2005 and 2016, thanks to conservation efforts.^5,6

Indigenous-led conservation has also played an essential role in protecting Brazil’s environment. Indigenous territories have the lowest rates of deforestation of all lands. Even during the deforestation spike of 2019–2021, most Indigenous reserves remained intact sanctuaries.

Research shows that forests managed by Indigenous people are cleared much less than unprotected areas. Lula’s government is also supporting Indigenous communities by establishing a Ministry of Indigenous Peoples and resuming the demarcation of new Indigenous lands.³

Brazil’s Urban Challenges and Climate Resilience

While Brazil’s natural forests draw global attention, everyday environmental challenges are also acute in its cities, where most Brazilians live. Rapid urbanization has caused problems like air pollution, poor sanitation, flooding, and heat stress.

Major cities such as São Paulo face traffic jams and smog from cars and factories. World Health Organisation (WHO) data shows that São Paulo's air quality often exceeds safe limits, especially during dry seasons.⁷

Climate change amplifies urban risks, with flooding and landslides triggered by extreme rainfall being significant concerns. In early 2023, record downpours in coastal São Paulo state caused deadly mudslides, highlighting the vulnerability of informal settlements on steep hillsides.

Urban resilience has therefore become a priority. Cities are investing in drainage systems, early warning systems, and green solutions to reduce flood damage. For example, São Paulo expanded its stormwater reservoirs and created plans focusing on early warnings, urban forests, and green infrastructure.⁸

Despite these efforts, funding remains insufficient. Brazil’s Growth Acceleration Program (PAC) allocated only R$15.3 billion out of R$1.7 trillion for climate resilience, a small amount that experts say is not enough. To address this, the federal government started AdaptaCidades, a project backed by the Green Climate Fund to help cities create climate adaptation plans.^9,10

Environmental Policy Reforms in Brazil

Environmental governance in Brazil has changed significantly under President Lula. On his first day in office, he restarted the Amazon Fund’s governing board, unlocking nearly R$3.9 billion (about $780 million) from international donors.

With Norway and Germany resuming contributions, the Amazon Fund has supported many projects for monitoring forests, creating sustainable livelihoods, and empowering Indigenous communities.^4,11

The government also brought back the Action Plan for Prevention and Control of Deforestation (PPCDAm), which was originally developed during Lula’s earlier presidency. Next, Lula moved the Rural Environmental Registry (CAR) back under the Environment Ministry’s oversight to improve the review of land claims and enforce the Forest Code on private land.^4,11

In early 2023, President Lula announced a humanitarian crisis in Yanomami lands due to many illegal gold miners. These miners caused severe deforestation and polluted rivers with mercury.

To address this, the government created a task force with multiple agencies. By mid-year, they removed most illegal miners, destroyed their equipment, and banned flights and fuel to the mining sites. This effort shows Brazil's commitment to protecting the environment and indigenous rights.¹²

Brazil’s Clean Technology and Energy Transition

Hydropower

Brazil is often dubbed a “green energy powerhouse” because of its heavy reliance on renewables, and this sector has grown a lot through 2025. Around 60% of Brazil's electricity comes from hydropower. However, droughts have shown the risks of depending too much on hydro. In 2021, a severe drought lowered reservoir levels to historic lows, leading to energy rationing and higher electricity prices. To diversify its energy sources, Brazil is quickly expanding its wind and solar energy sectors to fill this gap.^13,14

Wind power

Wind power is a true success story. Brazil has rapidly grown its onshore wind farms by using strong, steady winds on its northeast coast and interior. As of 2023, the country ranks 6^th worldwide for installed wind capacity, with about 24 gigawatts (GW) of onshore wind. Companies like Neoenergia, a major utility, operate many wind farms and plan to build more. It currently runs 44 wind farms with over 1.5 GW of capacity.^15,16

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Brazil is also making good progress in developing its offshore wind industry. The federal environmental regulator is reviewing 97 projects that could produce 234 GW of energy.

The first auction for leasing offshore wind areas is planned for 2025. Analysts expect Brazil to have its first offshore wind farms by 2030, with about 2 GW of energy available by then. This large, untapped resource could help Brazil strengthen its position in clean electricity.¹⁷

Solar energy

Solar energy in Brazil has experienced exponential growth, particularly in distributed generation. Thanks to supportive net metering policies and falling costs, millions of households and businesses installed solar panels on rooftops and small plots.

In 2023, Brazil added 5.7 GW of distributed solar energy, bringing the total capacity to 24 GW. Although growth slowed slightly after some incentives were reduced, Brazil’s solar market is still strong.

Panel costs are at record lows, making payback periods for consumers very attractive.

Other green technologies in Brazil

Companies are also investing in battery storage and smart grids to integrate and manage renewable energy sources.¹⁸

Brazil’s abundant renewables are opening the door to new clean technologies. Green hydrogen hubs are being developed, with Piauí partnering with ENGIE to plan production routes.

Significant progress is also being made in bioenergy. Recently, the National Bank for Economic and Social Development (BNDES) approved R$100 billion in funding for Raízen’s second-generation cellulosic ethanol plant, which will have an annual capacity of 82 million liters.^19,20

Future Pathways for Sustainability in Brazil

Brazil’s path forward hinges on bold actions and sustained investments. The country aims to strengthen its position in carbon markets, potentially earning $10 billion by 2027 through forest carbon credits if current deforestation trends continue.²¹

Technology will also enhance Brazil’s environmental monitoring. INPE’s real-time satellite tracking and MapBiomas land mapping already empower enforcement and supply chain accountability. In the future, drones, machine learning, and blockchain will further enhance environmental, social, and governance (ESG) practices and protect forests from illegal use.^3,22

With strong political will and international support, Brazil can demonstrate that it can protect forests while boosting the economy. The coming years will be crucial for both Brazil and the planet.

References and Further Reading

1. 2022 Census: 87% of the Brazilian population lives in urban areas. Agência de Notícias - IBGE. https://agenciadenoticias.ibge.gov.br/en/agencia-news/2184-news-agency/news/41910-2022-census-87-of-the-brazilian-population-lives-in-urban-areas
2. The Amazon Rainforest. WWF. https://www.wwf.org.uk/where-we-work/amazon
3. Barnard, M. (2025). Brazil’s Deforestation Rate Drops 50% in 2023 as Amazon Protections Strengthen. Medium. https://medium.com/climate-wins/brazils-deforestation-rate-drops-50-in-2023-as-amazon-protections-strengthen-b416c7abaf36
4. Norway announces R$250 million donation to the Amazon Fund at COP28. Planalto. https://www.gov.br/planalto/en/latest-news/2023/12/norway-announces-r-250-million-donation-to-the-amazon-fund-at-cop28
5. IBGE updates statistics on threatened species in Brazilian biomes. (2023). Agência de Notícias - IBGE. https://agenciadenoticias.ibge.gov.br/en/agencia-news/2184-news-agency/news/36980-ibge-updates-statistics-on-threatened-species-in-brazilian-biomes
6. Festival draws attention to the importance of conserving jaguars. WWF Brasil. https://www.wwf.org.br/?87620/Festival-draws-attention-to-the-importance-of-conserving-jaguar
7. Silva de Sousa, A. et al. (2024). Impacts of urban emissions and air quality in São Paulo State, Brazil. Environmental Monitoring and Assessment 196, 433. DOI:10.1007/s10661-024-12529-x. https://link.springer.com/article/10.1007/s10661-024-12529-x
8. São Paulo Municipal Climate Resilience and Adaptation Plans. Regions4. https://regions4.org/actions/sao-paulo-municipal-climate-resilience-and-adaptation-plans/
9. What Will Help Brazil Recover From Deadly Flooding? Inter-American Dialogue. https://thedialogue.org/analysis/what-will-help-brazil-recover-from-deadly-flooding
10. Brazil’s Federal Government launches initiative to support states, municipalities in climate change adaptation. (2025). Secretaria de Comunicação Social. https://www.gov.br/secom/en/latest-news/2025/02/brazil2019s-federal-government-launches-initiative-to-support-states-municipalities-in-climate-change-adaptation
11. Lula revives $1 billion Amazon Fund and environmental protections. Climate Home News. https://www.climatechangenews.com/2023/01/04/first-day-office-lula-revives-1-billion-fund-amazon/
12. Brazil's Lula orders crackdown on supplies to illegal miners in Yanomami territory. (2023). Reuters. https://www.reuters.com/world/americas/brazils-lula-orders-crackdown-supplies-illegal-miners-yanomami-territory-2023-01-31/
13. Changing Climate in Brazil: Key Vulnerabilities and Opportunities. (2024). IMF eLibrary. https://www.elibrary.imf.org/view/journals/001/2024/185/article-A001-en.xml
14. Brazil's hydropower faces risk from drying river basins. (2024). Reuters. https://www.reuters.com/business/energy/brazils-hydropower-faces-risk-drying-river-basins-2024-09-11/
15. Terra, N. (2023). Wind energy in Brazil breaks records and creates jobs. International Recruitment & Employer of Record for Technology & Energy. https://www.airswift.com/blog/wind-energy-brazil
16. Renewables. Neoenergia. https://www.neoenergia.com/en/renewables
17. Brazil could be the world’s most promising region for offshore wind. (2024). Marsh. https://www.marsh.com/en/industries/energy-and-power/insights/brazil-could-be-the-worlds-most-promising-region-for-offshore-wind.html
18. Distributed-generation solar hits 24 GW in Brazil. pv magazine International. https://www.pv-magazine.com/2023/10/24/distributed-generation-solar-hits-24-gw-in-brazil/
19. Developing a Green Hydrogen Strategy for the State of Piaui, Brazil. (2024). Engie Impact. https://www.engieimpact.com/insights/piaui-green-hydrogen
20. BNDES approves $163.6M financing for Raizen’s 82M liter 2G ethanol plant. (2025). Biofuels Digest. https://www.biofuelsdigest.com/bdigest/bndes-approves-163-6m-financing-for-raizens-82m-liter-2g-ethanol-plant/
21. Mobilizing Amazon societies to reduce forest carbon emissions and unlock the carbon market (commentary). (2023). Mongabay Environmental News. https://news.mongabay.com/2023/03/mobilizing-amazon-societies-to-reduce-forest-carbon-emissions-and-unlock-the-carbon-market-commentary/
22. These maps show deforestation and much more across Latin America – here’s how they can help counter the climate crisis. (2023). World Economic Forum. https://www.weforum.org/stories/2023/09/mapbiomas-climate-crisis-deforestation-brazil/