Boca Raton, FL – Green Economy or any other preferred denomination, the fact is that humanity is going through a mindset shift in which it is no longer acceptable to increase production of goods regardless of the consequences. It is necessary to produce more, but within parameters that had little relevance just a few decades ago.
Above political-ideological discussions, the culture of society in various countries has been increasing the importance of environmental preservation. This is good news from an economic and social standpoint, not just the obvious environmental aspect.
The two most populous countries in the Americas, Brazil and the United States, have significant numbers to present. As illustrated in the figure below, investments in renewable energies have been consistently growing over the years.
Source: Adapted from the International Renewable Energy Agency (2017) cited in CALDEIRA et al. (2020), p. 139.
The trend line for the United States may seem modest due to the effect of the graph’s scale, but investment more than tripled during the period. Brazil’s investment is favored by specific natural and economic conditions that boost these numbers.
Unlike Europe and North America, Brazil’s reserves of coal are low and have lower energy potential. It was necessary for Brazil to take advantage of having many rivers and build its energy matrix based on hydroelectric power. Of the ten largest hydroelectric plants in the world, three are located in Brazil: Itaipu, Belo Monte, and Tucuruí.
As the generation of electricity from dams grew at a much faster rate, other renewable sources advanced in Brazil’s energy matrix, as shown in the figures below.
Source: EPE, 2019a cited by CALDEIRA et al. (2020), p. 276.
Although there is still a long way to go, the United States is heading in the right direction and changes in the energy matrix show unequivocal signs that renewable energy will increasingly take up space.
By the way, Brazil and the United States have a rich history of cooperation for environmental preservation and investments in renewable energies. Several agreements for technology exchange, joint regulation to favor the market for renewable fuels, bilateral trade, and other actions have been signed for decades between the two nations. Recently, the United States pledged to contribute $500 million to the Amazon Fund, which selects projects for environmental preservation and sustainable human development in that region.
The merit is not only of these two countries. Initiatives, heavy investments, and the creation of laws around the world are blooming to make the economy and production of goods less aggressive to the environment. The Paris Agreement, signed in 2015, now has 195 signatory countries committed to the goal of reducing greenhouse gas emissions. Within the set of actions, the significant growth rate of wind and photovoltaic power generation in the world stands out, as illustrated in the figure below.
Source: Powerweb cited by CALDEIRA et al. (2020), p. 177.
The movement to make the economy environmentally friendly is robust and irreversible. It stems from a shift in thinking, culture, and a greater flow of information that raises people’s awareness of the need to reshape how humanity produces and consumes the necessary goods to live well. In the wake of this current, new technologies are developed, new jobs are created, and human knowledge expands, providing evolution in related areas. It happens slowly, like many of the efforts throughout human history, and there is still much to be done, but the current is consistent, and the achievements so far need to be recognized. All of this is slow, it is true, but it is inevitable.
CALDEIRA, J.; SEKULA, J. M.; SCHABIB, L.. Brazil: Restorable Paradise. Rio de Janeiro: Estação Brasil, 2020.
By Rodrigo da Costa Fonseca