OBJECTIVE

The Clean Energy Coalition – just and gas-free transition aims to exclude the use of natural gas from the mix of energy sources for electricity generation in Brazil by 2050.

WHO WE ARE

We are a Brazilian group of civil society organizations committed to advocating a socially fair and environmentally sustainable energy transition in Brazil. The following organizations are part of: Energy and Environment Institute (IEMA), Arayara International Institute, Institute of Socioeconomic Studies (Inesc), Brazilian Institute for Consumer Defense (Idec) and ClimaInfo.


To acheive this objective, we articulate and facilitate actions to promote the energy transition through the reduction and elimination of fossil gas energy sources, the reduction and elimination of the exploitation of hydrocarbon reserves such as shale and the import of liquefied natural gas (LNG) .

WHY

Increasing the use of natural gas is not the solution and what are our main arguments to oppose the use of gas as a transition fuel.

The perception of natural gas as an indispensable fuel for the decarbonization of the global energy matrix delays transition and compromises long-term investments in renewable forms and sources of energy.

The perception of natural gas as an indispensable fuel for the decarbonization of the global energy matrix delays transition and compromises long-term investments in renewable forms and sources of energy.

Increased use of gas in thermoelectric energy generation will produce unnecessarily higher emissions in the electric energy sector, thus compromising Brazil’s level of ambition before the Paris Agreement.

Socioenvironmental impacts associated to gas and energy should be evidenced and exposed in the entire process of venture viability research – auctions, public bidding processes, licensing – therefore increasing opposition to its economic viability and legitimacy before society.

Measuring and exposing the economic impacts of the natural gas chain on public coffers and consumers’ electrical energy bills is essential to influence decision-making with regards to hiring new energy, as well as to oppose the compulsory hiring of gas power plants provided for in Law No. 14.182/2021, which privatized Eletrobras.

Expansion of the energy matrix should continue the trend of diversification that took place in prior decades so as to increase the installed capacity of wind and solar sources, the two most economical options according to the last energy auctions, followed by biomass thermoelectric plants, which are capable of complementing this varying generation and contribute to the base load during droughts in hydropower plants.

Although the financial sector does not have any regulatory role, its power to induce the gas market and block energy transition is evident. Monitoring and disclosing financial flows, the gaps in the safeguards of natural gas chain projects and its corporate chains, can influence decision-making in these funding sources.

CONTEXT

Brazil has increasingly invested in building demand and expanding the supply of natural gas, especially for the electricity sector.

In 2021, the increase in the operation of thermoelectric plants to minimize the risk of electricity rationing boosted the increase of imported liquefied natural gas (LNG). This also happened with the contracting of 14 natural gas thermal plants in an emergency auction in October of the same year. For the medium term, natural gas also had projects contracted in the 2021 capacity reserve auctions and in others provided for in Law No. 14.182/2021, that allowed the privatization of Eletrobrás, to come into effect from 2022, with an increase of 8 GW from 2026 to 2030 in states without pipeline infrastructure, mostly concentrated in the North and Northeast regions of the country.

Natural gas production is planned to increase from 130 million to 276 million m3/day by 2030. Additionally, the planning of 21 new LNG terminals signals the possibility of importing the fuel from the United States and other countries. The expansion of these imports is signaled by the projects of 12 regasification terminals, in addition to the five already existing. The use and investment of LNG in thermoelectric plants will result in the country’s dependence on this source of fossil energy, precisely when the global economy needs to rapidly zero net carbon emissions to respect the maximum global warming target of 1.5oC established by the Paris Agreement.

ARTICLES