Energy Transition

The energy transition is essential to limiting global warming to 1.5 degrees Celsius, requiring the expansion of renewable energy and a reduction in fossil fuels, while also bringing economic and social benefits, including job creation and gender equality.

Scientists around the world warn thatglobal warming of 1.5 degrees Celsiusabove pre-industrial levels could haveserious consequences, including food insecurity and the extinction of species. This temperature rise is driven by emissionsof greenhouse gases (GHGs), primarily carbon dioxide (CO2) and methane, resulting from activities such as the extraction and production of fossil fuels—oil, coal, and natural gas. This means that, from plastic consumption to burning coal to generate electricity, the habits of individuals and businesses can contribute to climate change.

However, the Intergovernmental Panel on Climate Change (IPCC) emphasized in its mostrecent report on mitigation, published in April 2022, that despitethe dire outlook, it is still possible to cut emissions in half by 2030.The energy sector is the largest contributor to global emissions, which is why governments, companies, and civil society organizations must take action to promote more sustainable policies in this market.
 

What is the energy transition?

Expanding renewable energy sources and reducing the use of fossil fuels, along with a focus on energy efficiency and investments in technology, are the foundations of a low-carbon energy transition. This concept aims to transform the energy mix toward less polluting solutions.

The IPCC’s guidelines also include increasing access to electricity for all people and the use of alternative fuels, such as renewable hydrogen (blue or green). Other approaches that have been adopted include energy storage and initiatives to remove or offset carbon emissions, including carbon capture and trading on the carbon market.
 

How should the energy transition take place?

The IPCC’s proposal, in its report on mitigation, includes three pathways for expanding sustainable energy:

Decarbonize primary energy and electricity generation;

 

Expand the use of electricity, bioenergy, hydrogen, and other fuels produced
from low-carbon sources;
 

Limit energy use by improving efficiency and promoting conservation.

 


This process offers benefits such as stimulating the creation of a new economy and generating jobs. According to the International Labor Organization (ILO), measures to make the energy sector more sustainable could result in a net gain ofapproximately 24 million jobs by2030. In addition, renewable energy promotes greater income and gender equity; according tothe International Renewable Energy Agency (IRENA), women account for one-third of jobs in the renewable energy sector—a better situation than in the oil and gas industry.

 

What is a just energy transition?

A “just transition” isa necessity recognized by various international organizations and, according to the IPCC, involves adopting measures to ensure that the impacts caused by changes in energy technologies are minimized and that benefits are maximized. Poverty eradication, equitable distribution of prosperity, and job creation in sectors considered “green” are some of the key issues. Actions should take local circumstances into account and can be aligned with the SDGs.

Energy Transition in Brazil 

In Brazil,the electricity and energy mixes havea higher share of clean and renewable sources than in the rest of the world—while 46% of the country’s energy comes from these sources, globally that percentage drops to 14%; for electricity, the figures are 83% and 27%, respectively. The main national source is hydropower, which accounts for more than half of the country’s installed capacity, followedby wind power.
 

The Energy Research Company(EPE), responsible for the studies that inform sector planning in Brazil, states that one of the country’s greatest challenges is the transportation sector. Initiatives to reduce emissions include encouraging the use of biofuels, such as ethanol (derived from sugarcane juice) and biodiesel (derived from vegetable oils), as well as electric vehicles.

Neoenergia's Role in Brazil's Energy Transition 

Action and energy policies are needed to achieve a sustainable transition. The company recognizes that the fight against climate change is one of the most important challenges humanity must face in the 21st century.

Everyone has a role to play in the transition toward a decarbonized society. Neoenergia is committed to driving the energy transition—a challenge the company has embraced, which has made it one of Brazil’s leading renewable energy companies. Our commitment to the electrification of the economy is a reality, along with the promotion of green energy and technological innovation to ensure a more sustainable future for future generations.