International forums hosted by Brazil, such as the G20 Meeting in November 2024 and the COP-30 of the UN Framework Convention on Climate Change (UNFCCC) in November 2025, indicate the country’s need for a rapid transition to a more sustainable economy in several dimensions. In this paper, we discuss the challenges and opportunities for a transition process towards sustainability in Brazil. 

We answer the following questions: What has Brazil’s experience been so far in the process of green economic transformation? What challenges does the country currently face in achieving zero-carbon emission targets as well as maintaining sustainable economic growth? What are the opportunities for green economic transformation in the country? What is the role of policies in fostering green economic transformation in the country? 

Brazil’s green transformation started in the 1970s with oil shocks focusing primarily on energy security. In the 2000s, a new phase of technological transformation was driven by international and domestic climate policies and carbon markets. Governments moved from industrial policy and economic incentives on the demand and supply side of green technologies to gradually letting the market regulate supply and demand as the technologies matured. Despite being in a comfortable position in relation to other G20 countries in some areas, such as leadership in renewable energy, Brazil still faces a series of challenges, such as deforestation and making the ecological transition compatible with the solution of social problems, such as poverty and inequality.