Brazil bans online health and teaching degrees

New rules require more in-person classes across higher education formats

05/20/2025

After four delays, President Lula signed on Monday (19) the decree establishing the new regulatory framework for distance learning (EAD) in higher education. The changes will also affect hybrid and in-person learning, reshaping the entire sector. Institutions will have two years to comply.

The strictest rules target undergraduate degrees in health and teacher education. These programs can no longer be offered entirely online. Teaching degrees must now include at least 50% of coursework in person. Nursing programs will be allowed only in traditional classroom settings. Other health-related degrees will require a minimum of 30% in-person classes.

“I believe the measures are positive, even if overdue. Distance learning is certainly a way to expand access to higher education—this has been the case in other countries—but it must be quality education. There’s no point in reaching remote areas if the education offered is poor,” said Claudia Costin, former global education director at the World Bank.

Ms. Costin noted that half of all students in distance learning programs drop out, and course quality is a major factor in that decision.

Nonprofit organization Instituto Península also supports the new requirement for 50% in-person attendance in teaching degrees. “Hands-on experiences, including internships and community engagement, shape good teachers. Practice is essential,” said Mariana Breim, the institute’s director of educational policy.

Education Minister Camilo Santana has raised concerns about the quality of training in health and teaching programs since he took office, particularly regarding the large number of students enrolled in online programs. In the 2022 college entrance cycle, about 80% of new students in teaching degrees chose online courses. For nursing degrees, 190,000 students were enrolled in remote programs, compared to 241,000 in in-person programs at private institutions.

“High-quality distance education is a powerful and strategic tool for expanding access to higher education. It plays a key role in meeting the goals of the National Education Plan, which expired last year and remains unmet,” said Mr. Santana at the decree signing ceremony.

The sector often argues that online education helps democratize college access, offering more affordable tuition (roughly a quarter of the cost of in-person programs), flexible schedules for working adults, and opportunities for students in towns without college campuses. Brazil has nearly 2,300 municipalities without in-person higher education offerings. However, only 10% of EAD students actually live in these areas.

The decree also introduces formal regulation of hybrid programs—those combining online and in-person elements—which have seen the fastest growth in recent years but previously lacked official classification. These were often just standard online programs with an increased number of in-person activities.

Meanwhile, for in-person degrees, the share of coursework that can be completed remotely will be reduced from 40% to 30%. Degrees in medicine, law, psychology, and dentistry will continue to be delivered exclusively in classrooms.

Distance learning programs must now include at least 20% of coursework as in-person or live online sessions, and all exams must be taken in person at designated locations.

The new regulatory framework aims to bring order to a market that experienced explosive and often disorderly growth following the pandemic. Brazil’s private distance education sector now serves 4.7 million students online, compared to 3.2 million in traditional classroom settings. In 2023, the number of first-year students in online courses was twice that of in-person programs.

This rapid growth has led to abuses by some institutions. Although regulations require that students complete exams, lab work (especially in health and engineering), and internships in person, it is not uncommon to find students taking exams online, conducting lab activities in virtual environments, and completing internships remotely. In such cases, students may complete a four-year degree without any face-to-face interaction, often leaving them unprepared for professions that demand social and interpersonal skills.

Going forward, exams must be taken in person and proctored by qualified instructors. For live online classes, enrollment will be capped at 70 students per class, and a certified teacher in the relevant field must be present.

While private institutions dominate the distance learning sector, public universities remain cautious. Only about 200,000 students are currently enrolled in online programs at public universities, compared to 1.9 million in in-person programs.

The Education Ministry also plans to inspect the physical locations, or learning centers, associated with online programs, where students are supposed to complete their in-person coursework. Many of these sites lack proper infrastructure, such as labs, libraries, and classrooms. Some operate with multiple institutions under one roof, offering little more than a storefront.

Roughly 50,000 learning centers are registered with the ministry, but it’s estimated that half are not adequately equipped. The sector is repeating the trajectory seen in 2008, when the first boom in distance education prompted the ministry to shut down 1,300 under-equipped centers.

At that time, the government banned the opening of new online programs and student slots for nearly a decade, which led to market concentration and high valuations for established players. In 2011, Kroton paid R$1.3 billion for Unopar, then the leading online education provider.

In 2017, the market reopened, and institutions were allowed to open between 50 and 250 centers per year. The number of centers skyrocketed to the current 50,000. In 2024, the Education Ministry again froze new courses, slots, and centers until the new decree was published, while also increasing in-person requirements for pedagogy and teaching degrees.

*By Beth Koike, Sofia Aguiar and Renan Truffi — São Paulo and Brasília

Source: Valor International

https://valorinternational.globo.com/

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Legal disputes involving publicly traded firms on the rise in Brazil

Stock market slump and new litigation funders fuel surge in cases

05/20/2025

Legal disputes involving publicly traded companies in Brazil are on the rise as more businesses struggle financially due to the prolonged period of high interest rates and the emergence of specialized firms funding lawsuits through alternative investments. A key factor behind the trend is the sharp decline in share prices, driven by high risk aversion and the tight monetary environment.

To illustrate the surge, 1,760 new cases were filed in 2024 at the 1st Business Law and Arbitration-Related Disputes Court of the São Paulo Court of Justice (TJ-SP), up 8.4% from the previous year.Compared to 2021, the number more than doubled, rising 104%, according to a survey by law firm Yazbek Advogados for Valor. At the 2nd Business Court, filings totaled 1,782 last year—an 11.6% increase from the previous year and a 124% jump over three years. Arbitration chambers estimate that around 90% of cases involve corporate disputes.

Otavio Yazbek, a former director of Brazil’s Securities and Exchange Commission (CVM) and partner at Yazbek Advogados, said the rise in litigation is a consequence of Brazil’s cyclical economy. “They’re highly correlated. In times of market stress, economic relationships that started off well begin to deteriorate,” he explained.

Mr. Yazbek noted that the surge has become more apparent in recent years, especially after the Operation Car Wash probe, which marked a turning point in the legal landscape, prompting law firms to specialize in disputes involving listed companies. That was also when associations emerged that now lead many of these legal battles.

He added that lawsuits today are “multifaceted,” often extending into criminal courts and prompting complaints with the CVM, Brazil’s capital markets regulator.

The rise isn’t limited to high-profile cases like Americanas. At Toky (formerly Mobly), a dispute involves the founders of Tok&Stok, who attempted a takeover through a public tender offer (OPA) to gain control of the company. The case went not only to court but also to the CVM.

At Oncoclínicas, special situations fund manager Latache has petitioned the regulator to trigger a mandatory OPA due to a change in control. Other minority shareholders are also reportedly considering court action.

At Grupo Azzas, tensions between its two main shareholders—Alexandre Birman of Arezzo and Roberto Jatahy of Grupo Soma—have raised the possibility of a split due to business disagreements. While both parties have hired legal counsel, no court proceedings have begun.

Minority shareholders

Shareholder disputes also featured prominently during this year’s annual general meetings, particularly in board elections. One case involved Hypera, where EMS owner and rival Carlos Sanchez tried to appoint representatives, while Hypera’s main shareholder, João Alves de Queiroz Filho, opposed the move and raised the issue with Brazil’s antitrust authority, CADE.

“The stock market is down, companies are suffering, paying fewer dividends, and naturally, litigation increases,” said Guilherme Setoguti, a litigation partner at Monteiro Castro & Setoguti. He added that Brazil’s capital markets have matured, leading to more active minority shareholders.

“In the past five years, we’ve seen specialized funds defending their positions,” he noted. He also pointed to the evolution of the litigation funding market, with so-called special sits firms financing legal actions. “Litigation finance has matured in Brazil, creating the financial conditions for parties to pursue claims,” he said.

Some arbitration cases backed by litigation funds involve major companies such as Braskem, Vale, and Petrobras. These cases remain confidential under arbitration rules.

A growing number of companies undergoing bankruptcy protection also explains some of the disputes. More than 20 publicly traded companies are currently in court-supervised reorganization, as previously reported by Valor. In Agrogalaxy’s case, creditors challenged the recovery plan. In the textile firm Teka, creditors are in court seeking to prevent its bankruptcy.

Financial stress

Luís Flaks, a corporate law partner at BMA, said that during financial stress, his firm sees a rise in certain types of cases. These include shareholder lawsuits against capital increases that would lead to dilution, as well as liability claims against executives and disputes over shareholder voting conflicts.

He also pointed to an increase in administrative litigation, such as complaints filed with the CVM, and noted that more shareholders are now resorting to legal action to recoup losses.

Diogo Rezende de Almeida, a partner at Galdino, Pimenta, Takemi, Ayoub, Salgueiro e Rezende de Almeida, agreed that lawsuits tend to increase during financial crises. “In this environment of court-supervised or pre-bankruptcy proceedings, with companies restructuring debts, reviewing contracts, and renegotiating terms, creditors are turning to the courts to enforce their rights,” he said. At the same time, he added, companies are seeking ways to avoid enforcement actions.

Another sign of a maturing capital market, Mr. Almeida said, is the growing number of companies with dispersed ownership, pushing minority shareholders to assert their rights.

Mr. Yazbek pointed out that Brazilian law places limits on shareholder lawsuits. One example is the interpretation that only the company—not individual shareholders—can be compensated for damages. “This conservative reading of the law discourages direct shareholder actions,” he said. In the fund industry, however, this interpretation does not apply, which has led to a growing number of lawsuits.

Toky, contacted by Valor, said its board “aims to generate value for shareholders and other stakeholders.”

Grupo Azzas responded that “its key shareholders, Alexandre Birman and Roberto Jatahy, maintain an ongoing dialogue to improve governance.” In a statement, the company said that “despite the ongoing conversations, no transaction has been finalized between them, and the separation or breakup of the business is not under discussion.” It reiterated that “it does not comment on market rumors and remains focused on executing its strategic guidelines, which have delivered excellent results, as shown in the company’s consolidated first-quarter 2025 earnings.”

Teka issued a statement, saying that “with an estimated debt of R$4 billion and a breach of the court-supervised reorganization plan, the company is facing a situation of deep insolvency.” It added, “The court-appointed administrator has acted impartially and responsibly to ensure the legality of the process, transparency in its handling, and the continuation of operations, with special attention to workers’ rights, in strict compliance with its legal duties.”

The other companies mentioned in this story did not comment.

*By Fernanda Guimarães — São Paulo

Source: Valor International

https://valorinternational.globo.com/

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Brazil’s poultry exports to 17 countries suspended following avian flu outbreak

Temporary bans follow detection of H5N1 in commercial flock in Montenegro, Rio Grande do Sul

 

 

05/20/2025

Brazil’s poultry exports have been suspended to at least 17 countries after the detection of a highly pathogenic avian influenza (H5N1) outbreak in a commercial breeding farm in Montenegro, Rio Grande do Sul. The Ministry of Agriculture reported that, as of Sunday, nine countries had suspended imports, a number that has since increased.

Countries including Mexico, South Korea, Chile, Canada, Uruguay, Malaysia, and Argentina have formally notified Brazil of their decision to halt all poultry imports. In response, Brazilian authorities have ceased issuing international health certificates for exports to China, the European Union, South Africa, Russia, Peru, the Dominican Republic, Bolivia, Morocco, Pakistan, and Sri Lanka, in compliance with sanitary protocols.

The UK, Cuba, and Bahrain have suspended imports specifically from Rio Grande do Sul, while Japan has restricted imports solely from Montenegro. An embargo on shipments from a10-kilometer radius of the farm has been imposed by countries such as Singapore, the Philippines, Jordan, Hong Kong, Algeria, East Timor, India, Lesotho, Myanmar, Paraguay, Suriname, Vanuatu, and Vietnam.

At a press conference on Monday, Agriculture Minister Carlos Fávaro stated that complete disinfection of the affected farm is expected by Tuesday, May 20. This would initiate a 28-day monitoring period starting Wednesday, May 21. If no new cases are detected during this time, Brazil could declare itself free of the disease by mid-June. Mr. Fávaro emphasized that some countries may resume imports before the 28-day period concludes, depending on their assessment of the situation.

Mr. Fávaro acknowledged the difficulty in estimating the commercial impact of the suspensions but expressed confidence in a swift resolution through transparent negotiations. He reiterated that Brazil determines the start of the 28-day period and, absent new cases, can self-declare freedom from the disease to the World Organisation for Animal Health (WOAH).

As of the evening of May 19, four suspected cases were under investigation: two in commercial flocks in Ipumirim, Santa Catarina, and Aguiarnópolis, Tocantins; and two in backyard flocks in Salitre, Ceará, and Estância Velha, Rio Grande do Sul. Preliminary tests in Aguiarnópolis have returned negative for H5N1, according to the Tocantins Agricultural Defense Agency (Adapec).

Mr. Fávaro also addressed concerns about domestic poultry and egg prices, citing the 2024 Newcastle disease outbreak in Rio Grande do Sul, which had minimal market impact. He noted that 70% of Brazil’s poultry production serves the domestic market, suggesting limited price volatility.

Regarding financial resources, Mr. Fávaro indicated that additional budget allocations are not currently necessary for avian influenza control measures. However, sources within the Ministry of Agriculture suggest that a budget reinforcement of approximately R$100 million may be considered, pending evaluation by the Secretariat of Agricultural Defense.

Mr. Fávaro highlighted that the United States, a key market for Brazilian egg exports, has opted not to impose a blanket ban, instead restricting only genetic material imports from Rio Grande do Sul. He interpreted this as a sign of confidence in Brazil’s containment efforts.

In response to the outbreak, Brazilian states have implemented preventive measures. Santa Catarina, the country’s second-largest poultry producer, has banned the entry of live birds and eggs from 12 municipalities in Rio Grande do Sul. Goiás has declared a preventive animal health emergency to enhance surveillance, while São Paulo has conducted inspections of farms that received poultry or eggs from Rio Grande do Sul in May.

The Ministry of Agriculture continues to monitor the situation closely, aiming to restore international confidence and resume normal trade relations as swiftly as possible.

*By Rafael Walendorff — Brasília

Source: Valor International

https://valorinternational.globo.com/

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Preventive Law.

 

By Alberto Murray Neto (alberto@murray.adv.br)

 

 

A company’s life is marked by intense dynamics. Several activities occur simultaneously, requiring managers to make quick and effective decisions when faced with the countless challenges of everyday business. In this environment of constant movement, it is natural for situations involving legal risks to arise — many of which can be avoided with proper prior guidance.

One of the most frequent aspects of the business routine is the signing of contracts. These are agreements with suppliers, customers, service providers, business partners, among others.

Although they may seem, in many cases, to be routine procedures, these instruments have enormous legal and financial relevance.

 

It is essential that companies ensure that these contracts are well drafted, with clear, balanced clauses that precisely contemplate the obligations and rights of the parties, the penalties, the cases of non-compliance, and the solutions for possible conflicts. Preventive care in drafting contracts is one of the most effective tools for mitigating risks and protecting the company’s interests.

 

Well-written contracts significantly reduce the chances of litigation. And even if, in the end, there is no alternative but to resort to Judiciary, the party that is protected by a solid and well-structured contract will have a much greater chance of having its rights recognized by the courts.

 

It is in this context that the importance of preventive law stands out. Far from acting only in crisis situations, the preventive lawyer is a true strategic partner of the business. His job is to identify potential risks, propose safe legal solutions and, above all, prevent problems from arisen or that, if they do arise, they have already been foreseen and adequately addressed.

Investing in preventive law is protecting the present and ensuring the sustainability of the company’s future.

 

May 2025

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Brazil confirms first avian flu case on poultry farm

Officials declare 60-day animal health emergency in Montenegro, Rio Grande do Sul

 

 

 

05/16/2025

The Ministry of Agriculture and Livestock (MAPA) has confirmed the detection of highly pathogenic avian influenza (HPAI), commonly known as bird flu, at a commercial poultry farm in Brazil. The case was identified in the municipality of Montenegro, located 60 kilometers from Porto Alegre in the state of Rio Grande do Sul.

This marks the first instance of HPAI detected within Brazil’s commercial poultry sector. Since 2006, the virus has primarily circulated in regions such as Asia, Africa, and Northern Europe.

A 60-day animal health emergency has been declared in Montenegro, encompassing a 10-kilometer radius around the affected commercial poultry facility. According to the ministry, the scope of the emergency zone may be adjusted based on ongoing epidemiological investigations and animal health surveillance efforts.

The Rio Grande do Sul State Department of Agriculture reported that on May 12, signs of respiratory and neurological symptoms were observed in birds at a breeding facility in Montenegro. Samples were collected and sent to the Federal Agricultural Diagnostic Laboratory in Campinas, São Paulo, which confirmed the H5N1 HPAI diagnosis on Friday (16).

Following confirmation, the state’s Official Veterinary Service (SVO-RS) isolated the area and culled the remaining birds, initiating the farm’s sanitation protocol. A supplementary investigation will be conducted within an initial 10-kilometer radius of the outbreak site and will assess potential links to other properties.

Earlier this week, the Sapucaia do Sul Zoo, located in the metropolitan area of Porto Alegre, reported the deaths of 38 swans and ducks of various species, which exhibited no specific symptoms. This incident is also under investigation, and the zoo has been closed to visitors.

The ministry is communicating with stakeholders in the poultry production chain, the World Organisation for Animal Health (WOAH), the Ministries of Health and Environment, as well as Brazil’s trade partners.

MAPA emphasized that Brazil’s veterinary services have been trained and equipped to address such diseases since the early 2000s. Preventive measures have included monitoring wild birds, epidemiological surveillance in both commercial and subsistence poultry farming, continuous training of official and private veterinary technicians, public health education initiatives, and the implementation of surveillance activities at points of entry for animals and animal products into Brazil.

According to the ministry, these measures have proven effective in delaying the introduction of the disease into Brazil’s commercial poultry sector for nearly two decades.

The Brazilian Association of Animal Protein (ABPA) and the Rio Grande do Sul Poultry Association (Asgav) issued a joint statement asserting that the situation is isolated and, like any occurrence of the disease in birds, poses no risk to consumers. The organizations stated they are supporting federal and state governments in managing the situation.

MAPA officials reiterated that the disease is not transmitted through the consumption of poultry meat or eggs. “The Brazilian and global populations can remain confident in the safety of inspected products, with no restrictions on their consumption. The risk of human infection with the avian flu virus is low and primarily occurs among individuals who have close contact with infected birds, whether alive or dead,” the ministry stated.

“All necessary measures to contain the situation were promptly adopted, and the situation is under control and being monitored by government agencies. At the same time, the organizations trust in the swift actions to be taken by the Ministry and the State Department at all levels, ensuring that any consequences arising from the situation are resolved as quickly as possible,” the ABPA and Asgav statement concluded.

Avian influenza, also known as bird flu, is a highly contagious viral disease that primarily affects wild and domestic birds but can also infect humans.

Common symptoms in birds include respiratory distress, nasal or ocular discharge, sneezing, lack of coordination, neck twisting, diarrhea, and high mortality rates.

The Rio Grande do Sul State Department of Agriculture advises that any suspected cases of avian influenza—characterized by respiratory or neurological signs, or sudden and high mortality in birds—should be immediately reported to the nearest Agricultural Defense Inspectorate.

*By Fernanda Pressinott and Marcelo Beledeli, Globo Rural — São Paulo and Porto Alegre

Source: Valor International

https://valorinternational.globo.com/

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Marfrig and BRF merger creates R$152bn global food powerhouse

MBRF formed through share swap, with expected annual synergies of R$805m

 

 

 

05/16/2025

Food giants Marfrig and BRF announced the merger of their businesses on Thursday (15), creating MBRF Global Foods Company, which launches with R$152 billion in consolidated net revenue over the past 12 months. The deal had been widely anticipated by the market, as Marfrig had gradually acquired shares in BRF in recent years until it gained control of the company.

The transaction involves the incorporation of BRF shares into Marfrig at an exchange ratio of 0.8521 Marfrig share for each BRF share. As part of the agreement, BRF shareholders will receive up to R$3.52 billion in dividends, while Marfrig shareholders will receive R$2.5 billion.

“The merger unlocks value and creates the structure needed for relocating the company’s headquarters abroad,” said Marcos Molina, controlling shareholder and chairman of the boards of Marfrig and BRF, in an interview with Valor.

According to Mr. Molina, the new company’s growth drivers—Marfrig, BRF, and U.S. subsidiary National Beef—are centered in the United States, the Middle East, and China. Of MBRF’s estimated net revenue, 43% comes from the U.S., 24% from Brazil, 20% from Asia, and 13% from other markets.

In this context, North America is a potential destination for the company’s new headquarters. “This brings significant advantages, such as high liquidity in the U.S. market, access to more attractive capital costs, and the potential for a revaluation of the companies’ multiples,” he said.

Mr. Molina did not say when the relocation might take place.

New synergies

He noted that BRF’s management has been preparing for this moment over the past three years, ever since Marfrig gained control of the poultry and pork producer. Since BRF returned to profitability, the two companies have already been pursuing commercial synergies.

In his view, the companies have captured all the synergies they could under the previous structure. To unlock further gains, a full business combination was essential.

The newly mapped commercial and logistical synergies in MBRF amount to R$805 million per year, with R$400 million to R$500 million expected in the first 12 months and the remainder in the medium to long term.

On the revenue and cost fronts, the goal is to achieve R$485 million per year in synergies. Operating expenses are expected to fall by about R$320 million annually, with measures such as unified commercial and logistics operations, a consolidated IT system, and streamlined corporate structure.

There is also an estimated R$3 billion in present-value tax synergies through the consolidation of corporate tax IDs (CNPJs), which would accelerate the monetization of federal and state tax credits.

Since Marfrig already held 53% of BRF’s capital, the transaction will not require approval by Brazil’s antitrust regulator CADE, Mr. Molina said.

The companies will now call shareholder meetings to vote on the merger. The meetings are expected to take place on June 18, with the transaction slated for completion on July 28.

Of the new company’s total sales, 38% come from processed foods, 34% from poultry and pork, and 29% from beef.

MBRF launches as one of the world’s largest food companies, operating in 117 countries and managing brands such as Sadia, Perdigão, Qualy, Banvit, and Bassi. Its portfolio includes beef, pork, and poultry products, processed items, ready meals, and pet food.

Back in 2019, Marfrig and BRF had discussed a merger but abandoned the talks over disagreements on governance. Marfrig then began acquiring BRF shares until it gained control, now holding 53%.

In 2023, Marfrig sold most of its beef operations in South America to Minerva, aiming to refocus on higher-value-added products.

In the second half of 2024, the two companies took steps that signaled a merger was drawing closer. In September, they announced the unification of their main brands: Marfrig’s premium beef burgers adopted the Sadia/Bassi label, while Perdigão/Montana became the new brand for Perdigão’s processed beef line. The following month, they announced that Sadia would become Marfrig’s export brand for beef.

*By Nayara Figueiredo, Alda do Amaral Rocha  and Cleyton Vilarino  — São Paulo

Source: Valor International

https://valorinternational.globo.com/

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Lula’s vetoes on offshore wind bill face backlash in Congress

Energy sector pushes to reverse vetoes that critics say favor polluting sources and could raise electricity bills

 

 

05/13/2025

With Congress set to vote on the issue on May 27, Brazil’s electricity sector is ramping up pressure on lawmakers to overturn President Lula’s vetoes of controversial sections of Bill No. 576/2021, which regulates offshore wind energy generation in the country.

At the heart of the dispute are Articles 22, 23, and 24, vetoed by Mr. Lula for addressing issues unrelated to the bill’s original intent—so-called riders. Initially designed to unlock Brazil’s offshore wind potential, the bill was altered during its passage through the Lower House and took on provisions far beyond its initial scope.

These included mandates for the compulsory contracting of gas-fired thermal plants that must operate at least 70% of the time, extensions of contracts for coal-fired plants, mandatory purchases of energy from small hydroelectric plants (PCHs) regardless of market demand, and the postponement of benefits for distributed generation projects, among others.

A study by consultancy PSR estimates that keeping the vetoed articles in place could cost Brazilian consumers R$545 billion in electricity bills by 2050—equivalent to an average 9% increase in rates.

“Beyond the direct impact on electricity bills, these riders throw the sector into disarray,” said PSR CEO Luiz Barroso. “They distort future auctions, increase power curtailments, affect free-market prices, damage institutional credibility, and hinder long-term energy planning. Worst of all, they consume the already narrow room in tariffs to fund needed investments, such as those related to climate adaptation.”

Luiz Eduardo Barata, president of the National Front of Energy Consumers, echoed the concerns, saying the unrelated provisions undermine current proposals aimed at reducing electricity costs.

“If Congress overturns the vetoes, consumers will see immediate rate hikes, and the legal framework for offshore wind, which should promote the energy transition, will instead subsidize dirty, expensive generation,” he said.

Aware of the growing pressure, the president’s office has launched a political effort to preserve the vetoes. The assessment is that giving in to economic interest groups would damage the government’s environmental credibility and raise energy costs for the public.

Should Congress reverse the vetoes, Brazil could end up with an offshore wind framework that paradoxically favors coal and gas, drives up rates, and undermines the country’s clean energy future.

ABEGÁS, the association representing gas distribution companies, supports keeping the gas-fired thermal plants in the bill, arguing that it would enable the expansion of infrastructure and the use of natural gas inland. The group claims these plants would provide predictability and ultimately reduce electricity costs for all consumers—both residential and industrial.

The wind sector, which originally proposed the bill, is pushing back. “Since when does the legislature decide what source of energy consumers will use, where it will be produced, and how much it will cost?” asked Marcello Cabral, head of new business at ABEEÓLICA, the sector’s association. “That should be the job of energy planners—the Energy Research Company (EPE) and the Ministry of Mines and Energy (MME), as the granting authority.”

While the wind power segment stands to benefit most from a regulatory framework, it sees other sectors taking advantage of the bill without accounting for the societal costs.

The Brazilian Small Hydropower Association (ABRAPCH) is also lobbying lawmakers to overturn the vetoes. Its president, Alessandra Torres, called the effort a “positive lobby,” arguing that there’s misinformation surrounding the issue and that studies support the provisions advocated by the segment she represents.

“Just because it’s an offshore wind bill doesn’t mean we can’t address other issues,” Mr. Torres said. “That’s always been normal over the years. Replacing 8 GW from the Eletrobras privatization law with 4.5 GW of small hydro is actually advantageous for consumers.”

Despite its green façade, the vetoed articles could increase Brazil’s greenhouse gas emissions by up to 25%, according to experts. In the case of coal, the bill calls for contract extensions for plants in southern Brazil through 2025. The controversy highlights an ESG dilemma: lawmakers argue that maintaining coal plants is necessary to preserve 36,000 jobs in Santa Catarina and Rio Grande do Sul.

On the other hand, experts point out that the proposal runs counter to Brazil’s environmental commitments just ahead of COP30. Luiz Fernando Zancan, president of ABCS—which represents companies in the coal supply chain—said keeping the plants online is essential for system reliability.

“During the 2023 blackout, it was the coal plants that kept southern Brazil’s outage to just 15 minutes, while the Northeast was out for nearly five hours,” Mr. Zancan said. “Without these rotating machines providing inertia, energy, power, and auxiliary services, the grid faces serious problems.”

*By Robson Rodrigues — São Paulo

Source: Valor International

https://valorinternational.globo.com/

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Brazil’s ethanol seeks bigger role in energy transition

At Paris event, sugarcane industry discussed plans to quadruple global biofuel supply by 2035

05/13/2025

Brazil’s sugar-energy industry is stepping up its international outreach to gain a larger role in the global energy transition. On May 14, the Brazilian Sugarcane and Bioenergy Industry Association (UNICA) will participate in the traditional NY Sugar Dinner in New York, where it will promote Brazilian ethanol as one of the fastest and most effective solutions for decarbonizing land and maritime transport.

“Ethanol has proven to be highly efficient, significantly reducing carbon emissions compared to fossil fuels,” said UNICA president, Evandro Gussi. Ethanol can cut carbon emissions by up to 90% relative to gasoline.

At a recent event in Paris, industry leaders discussed strategies to increase the global biofuel supply fourfold by 2035. In this scenario, Brazil is seen as having the greatest expansion potential through the conversion of degraded pastures into sugarcane fields, gains in crop productivity, and greater use of corn for ethanol production. “There are also significant investments in biomethane, which will further expand the sector’s energy offering,” Mr. Gussi said.

Brazil is the world’s largest sugarcane producer, with 621.88 million tonnes harvested in the 2024/25 crop year, and the second-largest ethanol producer, having posted a record output of 34.96 billion liters in the last season.

On the demand side, maritime transportation is expected to drive higher ethanol consumption. The International Maritime Organization (IMO) has set targets to cut net emissions from international shipping by 20% by 2030 and reach net-zero emissions by 2050. Companies like Compagnie Maritime Monégasque and Wärtsilä are developing ethanol-powered vessels.

Japan is also expected to boost demand. The country plans to blend 10% ethanol into gasoline by 2030 and 20% by 2040, increasing annual consumption from 1.5 billion liters to 4.45 billion liters. In March, UNICA and the Institute of Energy Economics, Japan (IEEJ) signed an agreement to enhance technical collaboration on sustainable biofuels.

According to Mr. Gussi, initiatives such as Brazil’s Green Mobility and Fuel of the Future programs have strengthened the image of Brazilian ethanol as a sustainable alternative.

*By Cibelle Bouças, Globo Rural — Belo Horizonte

Source: Valor International

https://valorinternational.globo.com

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Bosch taps Brazilian know-how as the world enters “Latin mode”

Volatile global economy pushes headquarters to learn from Latin American leadership

 

 

05/09/2025

Last year, several countries began facing inflation, high interest rates, and abrupt changes to their economic environment—conditions they were not used to. In response, Bosch’s global leadership invited the executive heading Latin American operations to Germany to explain how to navigate a region accustomed to volatility.

“When things started getting rough, they said, ‘Come tell us how you do business in Latin America,’” said Argentine Gastón Diaz Pérez, who has led Bosch in the region since 2022.

Mr. Peréz titled his presentation “Driving in the Fog.” It opened with a car approaching Copacabana, complete with palm trees, the beach, and Brazilian music. A click later, thick fog set in, blinding the road ahead. The car’s headlights turned on, revealing just a few meters of visibility. “Doing business in Brazil, you can’t see the long term,” he said. And in Argentina? “That would be the extreme—driving with the lights off,” he added. “The Germans loved it,” he recalled.

“We’re used to making decisions in volatile environments. That’s an advantage we have over the rest of the world, which is now uncomfortable,” said Mr. Peréz, pointing to U.S. trade policy as an example. “I think the world has shifted into Latin American mode.”

From Bosch’s perspective, this shift could play in the region’s favor. The world’s largest automotive parts maker has not only learned from the region’s economic instability but has also begun to recognize the potential of its Brazilian subsidiary, which combines technical expertise, a concentration of talent, and competitive advantages—enabling reduced reliance on the headquarters.

Bet on electric engines

One of the latest developments in talks between Bosch Brasil and global leadership is the potential production of electric motors for vehicles. If approved, the German multinational would begin manufacturing electric or hybrid engines in either Campinas (São Paulo) or Curitiba (Paraná), where its factories are located. The experience would start with heavy vehicles, Mr. Peréz said. These plans are under evaluation, he noted.

Further along is the plan to localize production of the ESP (Electronic Stability Program), a system that controls vehicle traction. Bosch has been manufacturing the mechanical component of this system in Brazil for about a decade. By the end of this year, it will begin producing the electronic component as well, which is currently imported from Mexico and Asia.

“This is a highly sophisticated computer. If a truck suddenly appears in front of you, the ESP system brakes and lets you swerve. You think you’re a great driver, but it’s the system that managed everything,” Mr. Peréz said. “Imagine the sensor data processing speed required to make a decision at 100 kilometers per hour.”

Latin America growth

The localization of parts and new projects have helped drive Bosch’s growth in Latin America. While results were less favorable in key global markets, the company’s revenue in the region rose 12% in 2024 to R$10.8 billion. Brazil accounted for 77% of that, or R$8.4 billion, with exports making up 21% of the total.

Mr. Peréz said the strong result stems from both improved competitiveness and growth in the automotive market, Bosch’s main business segment in the region.

“Cars are becoming more and more high-tech. That helps a company like ours, because we sell technology to the auto industry,” he said. Mr. Peréz expects continued growth as hybrid vehicle production increases—especially flex-fuel hybrids that can run on ethanol. “All automakers have announced they’ll launch one or more flex hybrid models in the coming years, and we’re happy about that.”

Mr. Peréz said the headquarters sees Latin America as a region that “grows below its potential.” “We all feel that Brazil’s GDP could be growing 6% or 7%, right? The region is far from global conflicts, geopolitically neutral, and still has a young population and many of the resources the world will need in the coming years,” he said.

Agribusiness potential

Food production is one of those key resources, Mr. Peréz noted. That’s why Bosch has been investing in agribusiness technology. In February, Brazil was selected as the group’s global research and development center for agriculture. “Our clients are here,” he said. The plan includes a R$200 million investment and the hiring of 100 professionals, including several who were previously working abroad.

Mr. Peréz underscored Brazil’s role in boosting global food output. “Besides favorable weather and abundant fresh water, we have three harvests a year. Latin America will be the world’s top food exporter in the coming years.”

As an example of new agricultural technologies, Mr. Peréz highlighted an intelligent sprayer developed using artificial intelligence. The system can distinguish between weeds and soybean plants, spraying herbicide only where needed—even at speeds of 20 kilometers per hour.

“Are we going to keep just producing grains and importing technology from others? Or are we going to take on the challenge of being both top producers and the place where the best technology is developed to make it all happen?” he asked.

*By Marli Olmos — São Paulo

Source: Valor International

https://valorinternational.globo.com

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Petrobras expected to post higher Q1 profit on stronger output

Analysts from BTG, UBS BB, and Ativa project net income of R$34.9bn from revenue of R$130bn

 

 

05/09/2025

Higher oil and gas production in the first quarter is expected to drive a year-on-year increase in Petrobras’s earnings, according to estimates gathered by Valor from three banks and brokerages. On average, analysts forecast a net profit of R$34.9 billion, net revenue of R$130 billion, and EBITDA of R$64.3 billion. If confirmed, those figures would represent increases of 47.25% in profit, 10.47% in revenue, and 7.16% in EBITDA compared to the same period last year.

The projections reviewed by Valor come from Ativa Investimentos, BTG Pactual, and UBS BB. Forecasts for net income ranged from R$24.7 billion (Ativa) to R$41.3 billion (BTG), while revenue projections spanned from R$121.2 billion (Ativa) to R$137.3 billion (BTG). EBITDA estimates ranged from R$60.7 billion (Ativa) to R$67.2 billion (BTG).

In the first quarter, the state-controlled oil company reported production of 2.77 million barrels of oil equivalent per day, up 5.4% from the first quarter of 2024.

BTG Pactual analysts Luiz Carvalho, Pedro Soares, and Henrique Pérez noted that, following the market’s negative reaction in the fourth quarter—mainly due to higher capital expenditures—investors remain focused on how spending is evolving. Rising capex, they cautioned, could limit future dividend payouts.

According to BTG, lower investment levels combined with higher production should be key to a recovery in Petrobras’s share price. The analysts also said the company is likely to benefit from better refining margins and lower operating costs due to improved efficiency and fewer maintenance shutdowns.

A separate report from UBS BB, authored by Matheus Enfeldt, Tasso Vasconcellos, and Victor Modanese, emphasized that “the big question for the quarter is capex.” The report noted that the key issue is how capital spending will influence dividend expectations, and flagged a particular risk in Q1 results due to the rollover effect of investments made in the fourth quarter of 2024.

Santander analysts Rodrigo Almeida and Eduardo Muniz said they expect EBITDA growth to be driven by higher output, lower lifting costs, and stronger refining margins. However, they foresee weaker results in the gas and power segment, primarily due to a $283 million charge tied to a legal settlement with EIG Energy. In March, Petrobras agreed to pay $283 million—without admitting fault—to settle a lawsuit filed by the U.S. firm, which claimed losses linked to its investment in the FIP Sondas fund managed by Sete Brasil. Sete Brasil filed for bankruptcy after Petrobras canceled contracts for exploration rigs.

Santander’s estimates, provided in U.S. dollars, project first-quarter net income of $5.393 billion, up 12% from a year earlier. The bank expects net revenue of $20.621 billion and adjusted EBITDA of $11.359 billion—down 13% and 9%, respectively, compared to the first quarter of 2024.

*By Rafael Rosas, Valor — Rio de Janeiro
Source: Valor International
https://valorinternational.globo.com
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