The approval of the new legal framework for gas will modernize the regulation of the sector and may unlock R$ 60 billion ($ 12bn) in estimated investments in this area. The assessment was made by Moody’s when the House of Representatives signals to resume the assessment of the matter in the next few days, after approving, by 323 votes, the urgency for the processing of what is called the Gas Law.
The Ministry of Infrastructure’s final proposal for investments in public works through Pró-Brasil foresees a budget requirement of R$ 40.4 billion ($ 8bn) from 2020 to 2023. The resources would be invested in 153 road, rail, waterway and airport projects. To start these works this year, the IM need an extra injection of R$ 5 billion ($ 1bn). The ministry has already executed 70% of the budget guaranteed in 2020.
In Brazil, renewable energy sources reached a 46.1% demand for participation in the Energy Matrix, an increase of 0.6% over 2018, according to the MME. The Brazilian indicator represents three times the world indicator. Total energy demand reached 294 million toe, showing a growth of 1.4% over 2018, above the GDP rate (1.1%), and accounting for 2% of world energy.
The Brazilian government decided to include several solar energy equipment’s in a list of capital goods whose import taxes are zero-rated until the end of 2021, according to publications in the Official State Gazette. Import taxes for solar modules are usually 12%, while inverters pay tariffs of 14%.
The fiscal impact of the Brazilian program to support the economy due to the covid-19 reaches almost 10% of GDP, but the measures help to mitigate the negative effects on the growth of local activity. These were some of the observations made by Brazil during the financial meeting of the G20 group. The percentage is higher than the average of 5.8% of advanced economies and 4.1% of developing countries, according to the government.
20% of Brazil’s soybean imports by the European Union may come from illegally deforested land, indicated a study released, which provides detailed information on the supply chain. The study, published by Science magazine, also found that 17% of Brazil’s beef exports to Europe are related to the deforestation.
The Brazilian government has projected the construction of up to 10 GW in new nuclear power plants by 2050 in a long-term plan for the energy sector, which also points to the re-powering of old hydroelectric plants as a way of expanding the supply of generation. According to PNE 2050, the government will seek to insert between 8 GW and 10 GW in new nuclear power plants in the next three decades.
The deforestation of the Legal Amazon in the first semester of 2020 was 25.47% higher than in the same period last year. The forest lost 3,070 km2, according to Inpe. This corresponds to about twice the area of the municipality of São Paulo. Also, this represents the worst result of the first semester in the last five years.
The share of railways in the total transportation in Brazil should reach more than 30% in up to eight years. This is the federal government’s plan. Currently, the railroad mode accounts for 15% of the Brazilian transport ecosystem. The Ministry of Infrastructure argued that the achievement of this goal should be guaranteed from the railroad concessions already planned.
The Brazilian Government has stopped using million-dollar resources already donated by other countries to combat crimes in the forest. More than R$33 million ($6.3 mm) already donated to Brazil through the Amazon Fund, a programme financed with money from Norway and Germany, are available for two actions: one to fight fires by Ibama and the other for the Ministry of Justice to expand the work of inspection in the forest by the National Force. These resources, however, are stored in the BNDES.