Brasil
October 18th, 2024
1. Productivity in the manufacturing industry sees a slight decline in Q2
Labor productivity in Brazil’s manufacturing industry fell by 0.3% in the second quarter of 2024, according to a survey by the National Confederation of Industry (CNI). Although this result follows a 1.4% decline in the previous quarter, CNI considers the index close to stability, as industrial production increased by 0.9%, while hours worked grew by 1.3%.
For the coming quarters, experts predict a recovery in productivity, driven by the completion of new employee training and government policies that encourage industrial modernization. Among the measures are the financing of the “Mais Produção” Plan and the new accelerated depreciation law, which are expected to improve companies’ investment conditions.
Agência Brasil: Produtividade na indústria cai 0,3% no segundo trimestre
2. Chamber of Deputies approves bill that allows city administrations to oversee electricity companies
Amid São Paulo’s energy crisis, the Chamber of Deputies has approved a bill that decentralizes the oversight of electricity concessions in Brazil, allowing municipalities to participate in the monitoring and drafting of concession contracts. The bill aims to strengthen local involvement in the supervision of energy distribution services. The bill will now be reviewed by the Senate.
The approval of the bill comes at a critical time, as over 500,000 customers of Enel Distribuição in São Paulo were left without power after a storm. The company, which serves 24 municipalities, is struggling to restore service due to the complexity of rebuilding entire sections of the electrical grid. The bill seeks to ensure greater local control over the quality of services provided, while adhering to current legislation and the decisions of the National Electric Energy Agency (Aneel).
3. Report warns of a 2.4ºC increase in global temperature and highlights energy challenges
Despite significant growth in renewable energy sources, global demand for fossil fuels such as coal, oil, and gas is expected to peak later this decade, but without a substantial reduction in greenhouse gas emissions. According to a new report from the International Energy Agency (IEA), the planet remains on a trajectory toward 2.4°C of warming, far above the 1.5°C target set by the Paris Agreement, exacerbating the risks of severe climate change.
The report notes that while investments in clean energy reached nearly $2 trillion in 2023 – double the amount allocated to new fossil fuel sources – the expansion of renewable sources like solar and wind is still insufficient to meet global climate goals. China is leading this transition, accounting for 60% of the new renewable energy capacity added in 2023. However, challenges remain, such as the efficient integration of this new capacity into power grids and delays in clean energy projects in emerging economies. Growing electricity demand, driven by data centers and the use of air conditioning, is also a concern, especially in regions like Africa, Asia, and Latin America.
The combination of geopolitical factors, high demand, and rising temperatures due to climate change places the energy sector in a critical position, requiring coordinated efforts to accelerate the energy transition and mitigate the impacts of climate change.
Folha de São Paulo: Planeta caminha para aquecer 2,4°C com demanda atual de energia
4. Ecological transformation plan could boost Brazilian economy by up to R$722 billion by 2050
The Brazilian government has launched the Ecological Transformation Plan (PTE) with the goal of reshaping the economy and promoting sustainable development. According to the Ministry of Finance, the plan has the potential to accelerate GDP growth by 3% by 2026 and generate an economic impact of R$772 billion by 2050, based on a study conducted in partnership with the World Bank.
The PTE focuses on technological innovation and the responsible use of natural resources, with measures such as regulating the carbon market, investing in green infrastructure, and providing incentives for sustainable agricultural practices. The plan also aims to reduce greenhouse gas emissions by 12% and decrease deforestation by 55% by 2050, though it highlights that achieving these ambitious targets depends on factors beyond public policy.
CNN Brasil: Fazenda espera impacto de R$ 396 bilhões na economia até 2030 com Plano de Transformação Ecológica
5. Possible return of daylight saving time postponed to 2025
The return of daylight saving time in 2024 has been ruled out, but there is a possibility of its reinstatement in 2025, depending on future technical assessments. According to the Minister of Mines and Energy, Alexandre Silveira, current measures – despite the worst drought since 1950 – have ensured adequate reservoir levels, making the immediate change unnecessary.
Although a recent analysis by the National Electric System Operator highlighted benefits for the energy system, such as greater efficiency between 6 p.m. and 8 p.m., the decision prioritized alternatives already in place to reduce peak-time consumption. The debate over the return of daylight saving time continues, but without a concrete timeline for implementation.
Estadão: Governo diz que horário de verão este ano está descartado, mas que pode ser retomado em 2025