Despite a speech committed to social and climate rights, the Federal Government faced difficulties in ensuring significant progress towards the energy transition in 2024.
This is the main conclusion of the report “Budget and Rights: assessment of the implementation of public policies (2024)”, produced by Inesc (Institute of Socioeconomic Studies) and launched last Tuesday (29).
Among the various insights presented, the survey draws attention to the low allocation of resources to the energy transition in the last two years and to an alleged lack of coordination on the part of the MME (Ministry of Mines and Energy).
In the chapter on Energy Transition, Inesc highlights that, when analyzing the Ministry's budget between 2023 and 2024, it is observed that only two actions – “Incentive for the Generation of Renewable Electricity” (2E75) and “Studies of the Biofuel Industry” (21BD) – are specifically aimed at promoting the energy transition.
In this context, the resources authorized for these activities didecreased by 83,06%, as illustrated in the image below.
Last year, the amount represented just 0,002% of the total budget of R$6,92 billion that was authorized by the MME for discretionary actions. The report also highlights that there was a reduction of R$145 thousand (or 50,7%) in the resources authorized for action 21BD between 2023 and 2024.
Values below ideal
For Inesc, the values remain far below what is necessary, compromising Brazil's position as leader of the global environmental agenda, especially with the proximity of COP 30 (30th United Nations Conference on Climate Change), which will take place in Belém (PA) in November.
Inesc assesses that there is a lack of willingness on the part of the Federal Government to encourage the expansion of these sources — especially important for regions that depend on renewable energy solutions, such as distributed generation, to adapt to climate change.
“What we are seeing is a contradiction between the discourse of a progressive government and the practice of an austere fiscal policy. There is an effort to rebuild, yes, but there is a lack of ambition, political will and real competition for the budget,” says Cleo Manhas, political advisor at Inesc.
O Canal Solar ed the MME press office and is awaiting a position from the Ministry on the matter.
The study
The study released by Inesc analyzes the Federal Government's budget execution in areas considered priorities by the organization: economic panorama, education, cities and climate adaptation, energy transition, environment, indigenous peoples, quilombolas, racial equality, women, and children and adolescents.
In addition to the MME, the report also analyzed other ministries that have resources allocated to the energy transition, such as:
- MDA (Ministry of Agrarian Development and Family Farming);
- MDS (Ministry of Development and Social Assistance, Family and Fight Against Hunger);
- MCTI (Ministry of Science, Technology and Innovation);
- MDIC (Ministry of Development, Industry, Commerce and Services) and MAP (Ministry of Agriculture and Livestock).
The report, which is approximately 200 pages long, provides an analysis of budget execution by function, action and program. Inesc's recommendations include reviewing the fiscal framework, increasing transparency in parliamentary amendments and creating permanent sources for redistributive policies.
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