Davos 2023: Brazil on a new economic and environmental roadmap

Brazil is one of the "big players" in the Latin American region with a relatively stable economy, emerging green technologies that can help advance the global energy transition, 60% of the Amazon rainforest and strategic natural resources, which are crucial to the global fight against climate change.

Brazil is very aware of these advantages that make it a vibrant and unique nation. According to the panellists, the country is formulating strategies to maintain economic and social stability, as well as to become a leading force for climate action. While facing many domestic challenges - as witnessed earlier this year when an opposition movement organized anti-democracy riots in Brasilia - and against an uncertain international backdrop, Brazil looks set to leverage its robust institutions to strengthen democracy and boost its economy.

Fernando Haddad acknowledged that the new government is grappling with a challenging financial outlook due to high levels of social spending, among other factors. The minister reinforced his previous pledge that Brazil will end 2023 with a primary budget deficit of 1% of the gross domestic product.

"We want to balance our accounts and this will come accompanied by regulatory measures on credit, reindustrialization, looking at the ecologic transition, and regional integration."

Being home to a wealth of nature, biodiversity and cultural diversity, climate is a key topic in the agenda for Brazil, in the context of the global race to net zero and climate neutrality.

Marina Silva, who is the daughter of Amazon rubber tappers, said that the country was the first developing nation to have established climate targets and is now ready to take on a leading role in the environmental agenda, for example, by leading a global initiative on forest protection.

She said that Brazil is committed to zero deforestation by 2030 and has even offered to host the COP-30 in the Amazon - a gesture that can show the world and the Brazilian society that the government is serious about its environmental policies. She cautioned, however, that the world was yet to step up to its environmental commitments, adding: "We have good global regulation but the investments are lacking. The $100 billion that was pledged by the developed countries is still not here. We need to have resources for mitigation and adaption."

Latin American economies were strongly aided by commodities at the turn of the century. In their absence this time around, Haddad said the Brazilian government would push for a “regional integration boom” to ease trade and attract investments”.

Haddad added that the private sector has a role to play in fostering sustainable and inclusive development. The corporate sector still needs to take tangible action for the environment, gender equality, inclusion, sustainability, energy transition, and human rights.

Silva added that Brazil wants to lead by example. The country is hopeful that an economically prosperous, just, democratic and sustainable future can be achieved.