Companies swap board amid debt pressure

Proxy season will see 453 board members elected by end of April, according to Ânima; only 22.5% of candidates are women

04/17/2025

Brazilian publicly listed companies will elect 453 board members by the end of this month for the 2025 proxy season, amid a backdrop of rising debt costs due to higher interest rates, shareholder disputes, and minority investors pushing to gain representation.

According to a survey commissioned by Valor to consulting firm Ânima, 55 out of the 84 companies that comprise the Ibovespa, B3’s main index, will appoint board members this year. In 2024, a total of 360 board members were elected.

The survey shows that just 22.5% of candidates are women, and nearly half of the 453 individuals will be independent directors. “In addition to changes in board composition, the meetings will address crucial items such as financial statement approvals and bylaw amendments. The presence of minority shareholders, even with small stakes, contributes to a more transparent and balanced environment,” said Simone Monteiro, a partner at Ânima. Knowing who the candidates are “helps assess whether management’s interests are aligned with those of shareholders,” she said.

Eletrobras—despite being privatized—will also reformulate its board at the end of the month, with three nominees from the federal government: Maurício Tolmasquim, Silas Rondeau, and Nelson Hubner. The government and the company recently reached a governance agreement granting the state three board seats, pending shareholder approval. Even without the agreement, the government’s shareholding is sufficient to guarantee two seats.

At Eletrobras, the board election has become contentious, with the company backing a recommended list that includes the government nominees and Carlos Ferreira, a seasoned executive in the energy sector. Competing for seats outside the recommended slate are Marcelo Gasparino—an incumbent board member who was not re-nominated—and José João Abdalla Filho, one of the company’s largest individual shareholders.

Another high-profile case this season involves pharmaceutical firm Hypera, which is overhauling its board after a hostile takeover bid last year by EMS owner Carlos Sanchez—ultimately rejected by the company. Hypera’s founder, João Alves Queiroz Filho (better known as Junior), is seeking to return to the board. Mr. Sanchez, meanwhile, attempted to nominate directors and allied with L Par, controlled by businessman Lirio Parisotto, to propose candidates. Mr. Parisotto withdrew from the process yesterday.

Hypera has resisted its rival’s moves, even appealing to Brazil’s antitrust agency, CADE, to block EMS from gaining influence—indirectly or otherwise—on its board. The regulator requested further information and emphasized that EMS cannot exercise voting rights until a final decision is reached.

At supermarket chain Grupo Pão de Açúcar (GPA), French group Casino, businessman Ronaldo Iabrudi, and investor Nelson Tanure reached a deal on board composition shortly after a shareholder reshuffle. A source close to GPA said the agreement came after pressure from Mr. Tanure, who is reportedly aiming to merge GPA with DIA, a rival supermarket chain undergoing bankruptcy proceedings in which he invested last year. He is now GPA’s second-largest individual shareholder, ahead of Mr. Iabrudi, a former CEO. Other shareholders—including Rafael Ferri and the Coelho Diniz family—have also nominated board candidates.

In the midst of an out-of-court debt restructuring process at Casas Bahia, Michel Klein, a member of the company’s founding family, called a shareholders’ meeting in late March to replace board members and announce his own candidacy. He later withdrew the request, citing a “vote of confidence.”

At Eneva, where BTG Pactual is the main shareholder, André Esteves—founder of the investment bank—will take a seat on the board. Eneva is one of BTG’s energy investments. At B3, Antonio Quintella, chair of the exchange’s board, is stepping down after a decade. José Berenguer, CEO of XP, is rejoining the board.

Ms. Monteiro from Ânima says board changes can stem from a variety of factors, including corporate strategy, governance, and shareholder interests. She notes that in companies with state involvement—direct or indirect—board changes often follow political transitions. “Given the board’s central role in setting strategy and appointing senior management, it’s natural to see turnover in these cases,” she said.

Ownership changes and new investors also tend to spark board shakeups. Other common reasons for board turnover include shareholder pressure, M&A activity, strategic restructuring, governance issues, or even management crises, the consultant adds.

Despite the large number of seats up for election, this does not necessarily imply significant turnover across all companies, as many incumbents are likely to be reappointed. However, certain cases stand out due to their broader context. Generally, more dramatic changes occur in financially distressed companies, those with active minority shareholders vying for influence, and companies receiving board nominations from government-affiliated institutions like the Brazilian Development Bank (BNDES) and Previ, the pension fund for Banco do Brasil employees.

“The controversy often revolves around high-profile nominations, such as former ministers. What’s rarely questioned are family-backed nominees with little to no qualifications who are appointed solely based on their relationships,” said corporate governance expert Renato Chaves. He added that board elections usually draw the most attention from the market, though greater scrutiny should be placed on executive compensation. “Unfortunately, excessive compensation at some companies is rarely discussed,” he said.

Luiz Martha, director of knowledge at the Brazilian Institute of Corporate Governance (IBGC), stressed that shareholder meetings are among the most important events for a public company and should not be treated as mere formalities. “It should be a moment of engagement with shareholders,” he said. The board election, he added, is especially critical for shareholders, as their chosen representative becomes their voice inside the company.

When contacted, Eneva stated via its press office that board turnover is part of a process agreed upon by shareholders in 2024. “Eneva believes the new board composition will accelerate strategic decision-making, support healthy governance rotation, and reinforce shareholders’ commitment to expanding the company’s energy platform,” the statement read.

Eletrobras, B3, Casas Bahia, GPA, and Hypera declined to comment.

*By Fernanda Guimarães — São Paulo

Source: Valor International

https://valorinternational.globo.com/
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Be8’s profit soars nearly 30-fold in 2024

Brazil’s top biodiesel producer expands with new plants and investment in SAF, ethanol, and low-carbon fuel

04/15/2025

Be8 ended 2024 with a net profit of R$477 million—nearly 30 times higher than the previous year—and a recovery in sales.

The company has been aggressively expanding its operations in biodiesel, where it is Brazil’s largest producer, while also diversifying its portfolio with investments in sustainable aviation fuel (SAF), advanced biodiesel, and ethanol.

Net revenue from sales reached R$7.3 billion, a slight increase of 1.4% compared to 2023, though still below the record R$9.6 billion posted in 2022. Adjusted EBITDA doubled to R$599 million.

Last year, Be8 produced more than 900 million liters of biodiesel at its plants in Marialva (Paraná) and Passo Fundo (Rio Grande do Sul), and finalized the purchase of three additional biodiesel plants in the states of Mato Grosso, Piauí, and Pará. The deal was approved by Brazil’s antitrust agency CADE in January 2025.

The company is also advancing three greenfield projects. One is the construction of a free trade zone in Paraguay, where a SAF and hydrotreated vegetable oil (HVO) plant will be built—a project first announced in 2019. The second is an ethanol and wheat gluten facility currently under construction in Passo Fundo. The third is a new plant for producing BeVant, its proprietary low-carbon biodiesel, located next to its existing facility in the same city.

To support these investments, Be8 issued R$200 million in Agribusiness Receivables Certificates (CRA) last year. According to its financial statements, the company’s net debt rose 18.7% to R$541 million, while net cash fell R$544 million, closing the year at R$493 million.

*By Camila Souza Ramos, Globo Rural — São Paulo

Source: Valor International

https://valorinternational.globo.com/
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Brazil has tight import rules for online and travel purchases

Recent law ended exemption for international e-commerce under $50; all imports now subject to tax, with few exceptions

04/15/2025

Consumers who purchase products from international websites or bring goods from overseas travel are subject to paying Brazil’s Import Tax, a federal levy overseen by the Federal Revenue Service.

One of the agency’s stated goals is to protect the domestic market. In one of its tax education guides, the Federal Revenue Service noted that “by collecting import and export taxes, as other countries do, Customs protects the national industry, preserving jobs and our economy.”

How does the import tax work?

Any individual or business that brings or imports foreign goods for personal use or resale must pay fees associated with what’s known as “customs clearance”—the process of inspection and legalization of goods upon arrival in Brazil.

According to tax attorney Renata Bilhim, of law firm Toledo Advogados e Associados, both individuals and businesses are required to pay the Import Tax and the state-level Goods and Services Circulation Tax (ICMS), whose rates vary by state, during the clearance process.

The Import Tax rate ranges from 20% to 60% of the product’s final price.

In the case of businesses, other federal charges also apply, including:

  • PIS (Social Integration Program);
  • Cofins (Contribution for the Financing of Social Security);
  • AFRMM (Additional Freight Charge for the Renewal of the Merchant Marine), a levy on ocean freight and import operations.

Ms. Bilhim noted that travelers arriving by air or sea who bring personal-use goods or items within the $1,000 exemption limit are not required to pay taxes. The exemption for land border crossings is $500.

Travelers selected for inspection by the Federal Revenue Service with goods exceeding the exemption limits must either:

  • a) pay a 50% tax on the total value of the excess goods upon arrival;
  • b) or have the goods seized for later auction or donation.

Exemptions

The Federal Revenue Service lists several categories of items exempt from import taxes. These include:

  • Medicines imported by individuals for personal use, up to $10,000, for human treatment (cosmetics, supplements, and veterinary drugs do not qualify);
  • Commercially valueless samples, such as single shoes or miniatures;
  • Books, newspapers, and magazines;
  • Brazilian phonograms and videograms;
  • Goods replaced under warranty due to flaws;
  • Imports by diplomatic missions, consular offices, or international organizations.

Until August 2024, international online purchases up to $50 were exempt from taxes. However, Federal Law No. 14902/2024 removed this exemption—now, all foreign purchases are subject to tax, regardless of value.

Importing companies or their legal representatives must file the Single Import Declaration (DUIMP)—which replaces the former Simplified Import Declaration (DSI) and Import Declaration (DI).

This unified electronic document must be submitted via the Siscomex Website, the federal government’s platform that consolidates customs, tax, and commercial information from both importers and exporters.

The measure is part of Brazil’s New Import Process (NPI), a federal initiative aimed at streamlining and reducing the bureaucracy involved in bringing goods into the country.

*By Priscilla The — São Paulo

Source: Valor International

https://valorinternational.globo.com/
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Economist warns workweek cut could shrink Brazil’s economy by up to 7%

Abrupt shift to 36 hours seen as risk to wages, jobs, and national output

04/11/2025

A sudden reduction of Brazil’s average workweek to 36 hours—the central proposal in a constitutional amendment backed by Congresswoman Erika Hilton to eliminate the 6-days-on, 1-day-off work schedule—could shrink the country’s value added to the economy and its GDP by 3.8% to 6.9%, depending on employers’ responses. The estimate comes from economist Fernando de Holanda Barbosa Filho, a researcher at the Brazilian Institute of Economics at Fundação Getulio Vargas (FGV Ibre).

In 2024, Brazil’s value added rose 3.1%, according to the Regis Bonelli Productivity Observatory, based on national accounts data from the statistics agency IBGE. Unlike GDP, value added excludes taxes and subsidies but remains a key measure of economic output.

Mr. Barbosa Filho noted that Brazil’s average weekly work hours are already well below the legal limit of 44 hours, standing at 38.4 in 2024. If this average were cut to 36 hours—with all other factors constant—he estimates a 6.2% drop in total hours worked and, consequently, a proportional 6.2% decline in value added.

“This assumes workers would be just as productive per hour as before, but would simply work fewer hours,” he said.

A broader analysis, however, includes not just employment and hours worked (i.e., labor productivity) but also the capital stock in use, thus accounting for the total productivity (TFP). Under this lens, the economist estimates a 3.8% decline in value added in 2024 if the measure were adopted. The productivity data used also come from the Regis Bonelli Observatory.

“The impact is obviously smaller because only labor, not capital, would be affected,” Mr. Barbosa Filho said. “Claiming GDP would fall by 6% seems far-fetched. But a decline between 2% and 3% is a real risk if such a change is made overnight. Although the proposal is moving through Congress, I think the government would weigh the electoral risk and decide this isn’t the time to introduce additional economic uncertainty.”

Mr. Barbosa Filho added that the measure could reduce per capita income and wages, lead to business closures, and result in job losses. “These are averages—some people work more, others less. Lowering the limit would pull some people down, and they’re usually the ones who will struggle most to adapt.”

His scenarios assume no immediate impact on total employment despite the real wage increase implied by a reduced workweek, which raises unit labor costs. For firms already using the national average of 38.4 hours, the 36-hour cap would increase real wages by roughly 6%. For companies operating at the current legal maximum of 44 hours, the hike would be about 18%.

That, in turn, could prompt layoffs, Mr. Barbosa Filho warned. In such cases, accounting for both labor and capital inputs, the loss to the value added could range from 4.1% to 6.9%, depending on the wage increase and employers’ responses. “It’s important to stress these are simplified partial-equilibrium exercises. In a general-equilibrium scenario, all prices in the economy would shift,” he noted.

One common argument in favor of shorter workweeks is that productivity will rise. However, labor productivity in Brazil has shown what Mr. Barbosa Filho called “mediocre” growth in recent decades.

Between 1981 and 2024, total factor productivity grew by only 0.2% annually. Since 2018, it has declined by 0.4% per year. Even under optimistic productivity assumptions, the proposed reduction would still weigh on economic output. A 2.5% TFP increase would still translate into a 1.4% fall in value added. With just 0.5% TFP growth, the decline would be 3.3%—comparable to Brazil’s 2015–2016 recession.

Since 1981, Brazil’s average workweek has gradually shrunk by 0.3% per year, he noted. “This reflects technological change, but also rising incomes. As people earn more, they tend to work fewer hours. If you compare rich and poor countries, the average workweek is usually shorter in wealthier nations,” he said.

Between 1988 and 1989, Brazil’s average workweek fell from 42.8 to 41.8 hours, a 2.2% drop that Barbosa Filho attributes largely to the 1988 Constitution, which reduced the legal cap from 48 to 44 hours. “Part of the 1980s economic crisis stemmed from that change. And later, we saw productivity fall—not because workers got ‘worse,’ but because they were working fewer hours,” he explained.

He added that current legislation already guarantees at least one day off per week and does not prevent companies from adopting alternative work arrangements. “Many companies already use different schedules from the 6 x 1 model,” he said. “The demand for shorter workweeks has been unfolding gradually, and sectors are adjusting. We’ll get there in time.”

*By Anaïs Fernandes — São Paulo

Source: Valor International

https://valorinternational.globo.com/
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World talks energy addition rather than transition, ex-minister says

Izabella Teixeira, Brazil’s environment chief from 2010–2016, says decarbonization brings opportunity—but globally, energy is being added, not replaced

04/11/2025

Amid global geopolitical turmoil, Brazil is the best place to host the next United Nations climate summit, said Izabella Teixeira, Brazil’s environment minister from 2010 to 2016. “Brazilian democracy’s ability to welcome the world with its diverse social expressions is remarkable,” said Ms. Teixeira, now a consultant and advisor to institutions such as the Brazilian Center for International Relations (CEBRI).

The biologist, who played a key role in the negotiations that led to the Paris Agreement in 2015, stressed that it’s crucial to observe how financial and corporate actors—from São Paulo’s Faria Lima financial district and beyond—will engage with the climate issue. “Decarbonization is indeed an opportunity for Brazil, but we need to approach the issue in a mature way, not through a polarized or biased lens,” she said.

In an interview with Valor, the former minister discussed what will really be at stake at COP30, to be held in Belém, and why the world is not truly progressing in the so-called energy transition. Below are key excerpts from the conversation:

Valor: Based on your experience with the Paris Agreement, how do you view COP30? What areas might reach consensus in Belém?

Izabella Teixeira: I’m not even sure the world is capable of reaching consensus at a COP today. The event in Belém is more about understanding the current global moment to work toward practical solutions to tackle climate change. We’re witnessing a profound transformation in the international order, which directly affects the COP and the multilateral system.

All the geopolitical conditions that enabled the Paris Agreement ten years ago have changed. Paris was a political agreement that mobilized global engagement around climate. Today, global governance is undergoing a deep shift, marked by intense debate. The United States, for instance, has prioritized energy security based on fossil fuels. Meanwhile, countries like China and India are taking their own paths. We’re not talking about energy transition anymore—we’re talking about energy addition.

Valor: So the world isn’t replacing its energy sources?

Ms. Teixeira: No, there’s no substitution of one energy matrix for another, but rather the addition of new sources to the existing mix. The data shows record investments in renewables, but fossil fuel investments remain high. Europe, for example, might return to coal because of the energy crisis triggered by the war in Ukraine. Geopolitics directly influences the climate agenda, and this must be acknowledged in global discussions.

Electrification is key to decarbonization and is closely tied to the digital and technological age, which depends on strategic minerals and new materials—all of which require more energy. Moreover, population growth and extreme weather events are increasing energy demand. Cooling energy consumption has skyrocketed globally. The world’s energy matrix is still largely fossil-based, and changes aren’t happening fast enough.

Valor: Is Brazil out of sync with this global trend?

Ms. Teixeira: Brazil has a relatively comfortable position in terms of its electric matrix, which is heavily based on renewables. But challenges remain—such as our reliance on diesel, since we are the seventh-largest diesel consumer in the world. Decarbonization presents opportunities, but it also requires strategic decisions across short, medium, and long terms. These decisions cannot be based on assumptions but must follow a strategic vision that brings together government, the private sector, the financial industry, and civil society.

Valor: To what extent can COP address this ongoing energy debate?

Ms. Teixeira: The climate summit isn’t just the event—it’s part of a broader process already underway, stretching to 2026 while Brazil holds the COP presidency. The country must define how it will lead this global and domestic debate, bringing together different sectors to craft realistic solutions. Our electric matrix offers strengths, but we face complex challenges, including organized crime linked to deforestation in the Amazon. The forest is crucial for global climate security.

We’re facing a real, global problem that requires maturity and strategic choices. What we decide now will shape the next decades. The current climate crisis is the result of past actions. What we do today will determine how vulnerable we are tomorrow. Brazil must approach this conversation as an adult—among other adults—without polarization. That’s the real challenge.

Valor: Can “all these adults” actually decide the world’s future in Belém?

Ms. Teixeira: Brazil’s role as COP president is to offer a platform for dialogue—for example, on climate financing. There won’t be a specific decision on this at COP30, but there will be efforts to set up a political process to define future pathways. The decision to invest $1.3 trillion was already made at the COP in Baku [last year]. Brazil and the COP29 presidency will provide a vision on how to raise these resources. But the conversation isn’t limited to the COP—it’s also happening in the G20, BRICS+, and G7. Similarly, there won’t be major decisions on NDCs [Nationally Determined Contributions]. What we will see is a report assessing how ambitious these national plans are. The gap to stay within the 1.5°C limit clearly still needs to be narrowed.

Valor: If Belém is more about setting future processes than major negotiations, could this COP still change the cultural mindset around climate?

Ms. Teixeira: For Brazilians, it’s important to understand that they are part of global solutions. This isn’t some distant issue. Decarbonization can bring economic and social benefits to Brazil. We need pragmatism and realism to address all the moving parts. Our country must lead and offer solutions. Brazil has the diplomatic and economic capacity to influence the global conversation. COP30 is an opportunity to show that. Tackling climate change is in our direct interest. It’s not just an environmental issue—it’s about sustainable development, social inclusion, and technological progress. If Brazil plays it right, it can emerge stronger from this process.

Valor: So this will be a hands-on COP?

Ms. Teixeira: Climate change is happening—there’s no turning back. What’s needed now is action. This will be a COP of hard work, focused on restoring credibility and trust in the climate process, even as we deal with huge geopolitical uncertainties. These are issues that affect daily life, especially for younger generations, who are deeply concerned. We can’t be hostage to short-term tensions. Giving up or pretending the problem doesn’t exist is not an option.

We are creating life. That’s the key message: decarbonization brings the future into Brazil’s present and keeps us generating life. This is a country that looks to its future with innovation and a contemporary mindset, aware of the challenges of changing deeply rooted cultures.

*By Eduardo Geraque — São Paulo

Source: Valor International

https://valorinternational.globo.com/
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Brazil, U.S. resume trade talks as Trump tariffs bite

Economist Paul Krugman warns of inflation and false victories in new protectionist wave

04/11/2025

Brazil and the United States held their first negotiations since U.S. President Donald Trump’s sweeping tariff hike, which added a 10% duty on all Brazilian exports. According to sources, the two sides met on Thursday to discuss two main issues: clarifying the scope of the so-called “reciprocal tariffs” and securing continued access for Brazilian steel in the American market.

The Brazilian government is still pushing for the reinstatement of quotas imposed during Mr. Trump’s first term, including the 3.5 million-tonne cap for semi-finished steel, which serves as raw material for U.S. steelmakers.

Negotiators from both countries exchanged ideas on how to move forward, and a new round of talks is expected to be scheduled.

As previously reported, the Trump administration is still concerned about Brazil’s 18% import tariff on ethanol, which contrasts with the 2.5% duty applied by the U.S. It is widely expected that ethanol and steel may ultimately be bundled into a single deal, creating a trade-off that would appeal to both Brasília and Washington.

Mr. Trump is rushing to secure bilateral agreements under increasing pressure from segments of the U.S. private sector, even as the economic fallout from his trade policies continues to mount.

Last week, Mr. Trump presented tariff changes dramatically, displaying them on a large cardboard sign in the White House Garden. Although some duties have been slightly reduced—for example, the European Union will face a 10% tariff instead of 20% over the next three months—others have soared. Tariffs on Chinese imports, the third-largest source of U.S. trade after Canada and Mexico, have jumped to over 130% from 34%. High tariffs also remain on steel and aluminum.

Nobel Prize-winning economist Paul Krugman warned that claims of a tariff reduction miss the bigger picture. He pointed to an analysis by Yale’s Budget Lab, which suggests that the April 9 tariff regime could increase consumer prices even more than the April 2 package.

According to the report, Mr. Trump’s decision to apply a uniform 10% tariff to all countries, while sharply escalating duties on Chinese goods, is expected to raise U.S. consumer prices by 2.9%. That’s nearly ten times the estimated impact of the infamous 1930 Smoot-Hawley tariff, which helped turn a recession into the Great Depression and contributed to a rise in nationalism and global conflict.

Mr. Krugman questioned what the U.S. is even trying to negotiate. In many cases, he argued, other countries have no trade barriers to remove. He recalled that Mr. Trump’s trade advisor, Peter Navarro—mocked by Elon Musk as an “idiot”—has insisted that value-added taxes (VAT) are effectively tariffs. “They’re not,” Mr. Krugman said, adding that EU countries cannot afford to eliminate them.

In Mr. Krugman’s view, foreign governments may offer symbolic concessions that Mr. Trump will brandish as real victories. He cited Mr. Trump’s earlier trade deal with China during his first term, which he claimed involved major concessions from Beijing—claims that later proved false.

“In fact, American soybean producers never fully regained their lost market share,” Mr. Krugman noted. “And remember how Trump made minor tweaks to NAFTA and then claimed to have secured an entirely new trade agreement with Mexico and Canada.”

The two sides met on Thursday to discuss two main issues: the scope of the “reciprocal tariffs” and access for Brazilian steel in the American market — Foto: Pexels
The two sides met on Thursday to discuss two main issues: the scope of the “reciprocal tariffs” and access for Brazilian steel in the American market — Photo: Pexels

By Assis Moreira, Valor — Bordeaux

Source: Valor International

https://valorinternational.globo.com/
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Carbon market creates new job opportunities in Brazil

Companies seek professionals for emission reduction projects, clean energy adoption, and credit negotiations

04/10/2025

A new “green” industry is gaining momentum in Brazil and beginning to recruit professionals for strategic roles. The regulated carbon market—which allows companies and countries to offset greenhouse gas (GHG) emissions by purchasing credits tied to environmental initiatives—was established by a government bill at the end of 2024 and is expected to be fully operational by 2030.

According to the International Chamber of Commerce (ICC Brazil), the sector could attract up to $120 billion in investment over the next five years, potentially generating 3.4 million jobs by 2040.

Professionals in this segment, which has been active in other countries for more than two decades, are recruited to lead projects aimed at reducing GHG emissions, such as the adoption of clean energy and reforestation efforts. They may also calculate an organization’s carbon footprint, advise leadership on sustainable practices, and facilitate carbon credit negotiations between companies.

“In the last two years, we’ve seen an 18% increase in the number of projects recruiting for this area,” says Kleber Bonancio, senior associate manager at Talenses, an executive search firm that has specialized in carbon market hires for six years. “The number reflects growing interest in the topic in Brazil, especially after progress on regulated market discussions and projections of sector contributions.”

Mr. Bonancio notes that the positive outlook is heating up the job market and prompting more companies to form dedicated teams. “Hiring is happening mainly in the energy sector—both renewables and oil and gas—along with agribusiness, chemicals, and manufacturing,” he explains. However, as the market is still emerging, companies will likely face difficulties filling roles due to a shortage of qualified candidates. “That’s making the talent search extremely competitive and demanding CVs with strong technical skills,” he says.

This is the case of Maria Belen Losada, head of carbon products at Itaú Unibanco, who joined the bank in 2022. With more than two decades of experience in the treasury departments of global institutions such as BNP Paribas and Morgan Stanley, the São Paulo-based Argentine executive has spent the last three years immersed in the carbon market. She was recruited by Itaú’s HR team to take on the role. “My responsibilities include advising on carbon project generation, credit commercialization, and market advocacy,” says Ms. Losada, who holds a degree in economics and a specialization in sustainable finance from the University of Cambridge.

Among her notable achievements is the creation of a carbon credit trading and custody platform developed in partnership with eight international banks, including BNP, UBS, and BBVA. “The goal is to connect credit supply and demand across the banks’ client bases,” she explains.

Leading a team of four, Ms. Losada believes the sector in Brazil urgently needs more professionals. “The new accounting and reporting obligations for publicly traded companies, along with the growing need to plan for climate-related risks, will require specialized talent,” she says. “We’ll need professionals skilled in greenhouse gas emissions measurement, climate transition consulting, environmental and international law, and data science.”

At Bichara Advogados, partner Patrícia Mendanha Dias—who holds a master’s degree in environmental engineering—has worked with carbon-related cases for about a decade. “My legal practice has always focused on environmental matters, and I transitioned to the climate agenda because of its growing relevance and increasing client demand,” she explains.

Ms. Dias provides legal counsel on environmental issues and assists companies in structuring credit transactions, reviewing contracts, and monitoring sector-specific legislation.

With a team of five employees dedicated exclusively to carbon projects, she’s currently involved in initiatives in northern Brazil that bring together investors and riverside communities. “To do this work well, you need to be ready for constant change,” she says. “The sector’s regulations and project viability criteria are continually evolving. In this field, the ability to offer well-directed, proactive guidance is essential.”

Soraya Dias Pires, head of decarbonization at the Brazilian environmental solutions multinational Ambipar, emphasizes the need for both technical expertise and a strategic mindset. “In addition to being able to connect sustainability, economic viability, and business development,” says the agronomist, who was recruited by a headhunter in 2022.

Her background in innovation and deep understanding of the low-carbon economy helped open the door to the sector, says the executive, who previously served as business development manager at BP Bunge Bioenergia, in the sugar and ethanol industry. “I worked on structuring projects with both environmental and financial impact, linking environmental regeneration with a sustainable economy,” she explains.

Reporting directly to CEO Tércio Borlenghi Jr., Pires leads a 70-person team and oversees the certification and sale of carbon credits, the development of corporate decarbonization plans, and the application of geotechnologies for project monitoring. “Our mission is to make decarbonization accessible to companies by securing funding sources that make implementation feasible,” says Ms. Pires, who works on environmental conservation and restoration projects in states such as Amapá, Pará, and Rondônia. “What drives me is knowing that my work contributes to the global climate agenda and creates a legacy for future generations.”

*By Jacilio Saraiva — São Paulo

Source: Valor International

https://valorinternational.globo.com/
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Santos-Guarujá tunnel auction draws interest from four groups

Construction cost and port disruption top list of investor worries

04/10/2025

The auction for the Santos-Guarujá tunnel concession is scheduled for August, but private-sector players are already gearing up for what is considered an exceptionally complex project. According to sources familiar with the matter, at least four business groups are actively studying the bid: China’s CCCC, partnered with Portugal’s Mota-Engil; Spain’s Acciona; Italy’s WeBuild, teaming up with Brazilian companies Andrade Gutierrez; and OEC (Odebrecht Engenharia e Construção), which is finalizing a joint venture with Queiroz Galvão’s EGTC and a third, as-yet-undisclosed firm expected to provide the financial backing for the consortium.

Odebrecht has reportedly held talks with several asset managers and international companies—including WeBuild and Chinese groups—in a bid to secure a financially viable partnership. One source indicated that with the addition of the third investor, now in advanced negotiations, the consortium’s financial structure would be in place. The company is also said to have hired an international firm specialized in tunnel design, given that the construction method being proposed has never before been used in Brazil.

Acciona has already partnered with Ballast Nedam, a Dutch firm specializing in submerged tunnel construction. Sources say the Spanish group has been studying the project for over a year and has held biweekly meetings with government officials. Talks were reportedly held with Vinci to potentially form a consortium, but the French firm ultimately walked away. Observers note, however, that Vinci remains interested in the auction, though its immediate focus is on other large-scale mobility projects in São Paulo that require substantial capital investment.

Acciona told Valor that it is “constantly assessing opportunities” and sees “significant value in Brazilian infrastructure assets.” CCCC, Odebrecht, EGTC, and Andrade Gutierrez declined to comment. Mota-Engil, WeBuild, and Ballast Nedam had not responded by press time.

The auction is widely seen in the market as highly challenging. The construction will require significant investment, involve an engineering method unprecedented in Brazil, and may interfere with operations at the country’s largest port. On the other hand, the fact that both the São Paulo state government and the federal government are contributing funds and sharing key risks is viewed as a strong point for the project’s feasibility, according to industry sources.

One major red flag cited by analysts is the project’s estimated rate of return, which some say is based on outdated interest rate assumptions. Given the complexity and risk of the initiative, they argue that a revised rate reflecting current financial conditions is needed.

There are also doubts surrounding the capital expenditure estimates. The project’s preliminary studies put CapEx at R$5.8 billion, but sources say the figure may be significantly underestimated due to incomplete technical details in certain areas of the project, which introduce uncertainty. The final construction cost, they warn, could be considerably higher.

Analysts are also concerned about potential impacts on shipping traffic. “The challenge is to execute a project of this scale without disrupting ongoing port operations,” said Casemiro Tércio Carvalho, a partner at infrastructure consultancy 4 Infra. “It’s a logistical challenge both for the port authority and for the contractor.”

Civil engineer and infrastructure consultant Jennyfer Tsai flagged further complications related to the staging areas where tunnel segments—which are to be built off-site and then submerged—will be constructed.

The auction notice identifies four possible locations within the Port of Santos for this activity, but Ms. Tsai noted that all of them overlap with areas designated for future terminal projects by the port authority, raising doubts over land availability. “If none of these sites can be used, that will drive up costs,” she warned.

In a statement, the Santos Port Authority (APS) said it is working to ensure “that any proposed location aligns with current port planning and is compatible with strategic projects underway,” while adding that the final site selection will be the concessionaire’s responsibility.

Regarding concerns about shipping operations, APS said that the tunnel is “urgently needed and will be built with the highest level of responsibility, with any necessary navigation suspensions planned well in advance in coordination with terminal operators.”

São Paulo’s Department of Investment Partnerships emphasized that the tunnel project was designed to minimize disruption to port activity. “Navigation through the main channel is expected to be suspended for only two days per module—six modules are currently planned, though that number could be reduced,” the agency stated. It also defended the current return and CapEx parameters, saying they were “based on robust studies.”

Despite lingering concerns, analysts and insiders acknowledged that several major risks—such as demand uncertainty, expropriation challenges, and geotechnical issues—have been adequately addressed. “From a regulatory standpoint, I don’t see any deal-breakers. The risk matrix already accounts for key issues,” Mr. Carvalho said.

The auction is set for August 1. The contract will be awarded to the bidder offering the highest discount on annual payments, which are capped at R$304 million. If the maximum discount (100%) is reached, bidders may then offer a discount on the public subsidy, which can go up to R$4.96 billion.

*By Taís Hirata — São Paulo

Source: VAlor International

https://valorinternational.globo.com/business
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Analysts fear Brazil could lose ground in U.S. trade talks

Projections point to closer ties with China, potential delays in investment

04/10/2025

The Trump administration’s surprise decision to impose new tariffs on Chinese imports has split Brazilian analysts over the potential fallout for Brazil’s economy. Experts interviewed by Valor expect continued headwinds for sectors like steel and aluminum—particularly if the 25% tariffs remain in place, well above the general 10% rate—while also anticipating a further deepening of Brazil’s commercial ties with China. At the same time, there are concerns that Brazilian products could lose ground to competitors in the U.S. market and that investment decisions may be postponed.

These measures add to global uncertainty and insecurity, said Welber Barral, partner at consultancy BMJ and former secretary of foreign trade. They’re likely to trigger a wave of negotiations with countries and blocs most affected by the U.S. trade policy. Mr. Barral warned that the move could open new markets for U.S. agricultural goods, posing risks to Brazil’s export sector. He believes blocs hit hardest by the new tariffs—such as the European Union, Japan, and South Korea—will likely receive priority in trade talks with Washington. Brazil, he says, could end up “at the back of the line” in negotiations for the 10% base tariff.

“In exchange for lower tariffs, the EU will offer the U.S. access to its agricultural market, which would be bad news for Brazil. Japan is expected to do the same, and South Korea may seek to negotiate around meat exports,” Mr. Barral added. According to Mr. Barral, the U.S. must secure new buyers for its agricultural output.

If the 25% sector-specific tariffs—which in Brazil’s case target steel and aluminum—remain, the executive believes the Trump administration will effectively be blending trade policy with commercial defense issues, heightening uncertainty. The 125% tariff on Chinese electric vehicles is also likely to raise concerns among U.S. Midwest farmers, who rely heavily on Chinese demand.

Sergio Vale, chief economist at MB Associados, sees a natural shift ahead: stronger Brazil-China relations. “If there was still any doubt that Trump would take a hard line against China, there’s none now,” he said. “This tariff will likely be reduced in time, but the broader consequence will be a faster decoupling between the U.S. and Chinese markets—and a growing alignment between Brazil and China.”

Trade between Brazil and China has surged in recent years and now amounts to twice the total volume of trade between Brazil and the U.S., Mr. Vale noted. Currently, trade between Brazil and China totals $160 billion, compared to $80 billion with the United States. “Within five years, Brazil-China trade could reach $200 billion—nearly three times the volume with the U.S., which may fall to $70 billion,” he said.

Still, Mr. Vale cautions that the short-term outlook remains volatile. “Even if Trump backtracks and returns to the negotiating table, this episode sends a clear message: the U.S. is no longer seen as the reliable trade partner it once was. And it’s making poor decisions on trade,” he said.

Luis Otávio Leal, chief economist at G5 Partners, sees a potential short-term window of opportunity during the 90-day suspension of reciprocal tariffs. “If all tariffs are in fact reduced to 10%—including those already levied on aluminum and steel—it could give U.S. companies a chance to rebuild inventories in preparation for a potential tariff hike once the suspension ends,” he said.

However, forecasting Brazil’s gains or losses is far from straightforward, said Carla Beni, economist and professor at the Getulio Vargas Foundation. “Companies need stability to make investment decisions and sign long-term contracts,” she said, adding that the prevailing uncertainty is likely to delay capital allocation—a negative outcome for all involved.

*By Marta Watanabe, Marsílea Gombata, Michael Esquer and Alex Jorge Braga — Brasília

Source: Valor International

https://valorinternational.globo.com/
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Orange juice industry faces $100m blow from new U.S. tariff

CitrusBr says cost to Brazilian exporters could rise 80%

04/08/2025

The tariff hike announced by U.S. President Donald Trump is expected to cost Brazilian orange juice exporters more than half a billion reais. According to CitrusBR, which represents exporters Cutrale, Citrosuco, and Louis Dreyfus, the new 10% tariff on the commodity could add $100 million per year in taxes for Brazilian companies.

The additional tariff, unveiled last week, targets a range of Brazilian products.

CitrusBR’s estimate assumes Brazil will export around 235,500 tonnes of orange juice to the U.S. during the 2024/25 harvest season. The U.S. currently accounts for 37% of Brazil’s total orange juice exports.

Data from the Foreign Trade Secretariat (SECEX), compiled by CitrusBR, show that between July 2024 and February 2025, Brazil shipped 207,200 tonnes of frozen concentrated orange juice (FCOJ 66 Brix) to the U.S., generating $879.8 million in revenue.

The new tariff would be in addition to existing charges, including a $415-per-tonne duty on FCOJ at 66 Brix concentration. That charge alone amounted to $85.9 million in 2024, according to CitrusBR.

Taken together, the existing and new tariffs could push the total annual tax burden on Brazil’s orange juice exports to about $200 million, or roughly R$1.1 billion.

“This 10% tariff leads to an over 80% increase in costs. We’re jumping from $415 per tonne to nearly $800, while Mexico—our main competitor in the U.S. market—pays zero thanks to its free trade agreement with the U.S.,” said Ibiapaba Netto, CitrusBR’s executive director, in an interview with Valor.

Despite the headwinds, CitrusBR said that “Brazilian companies continue, individually and in line with their commercial strategies, to supply the U.S. market with high-quality orange juice.”

“The industry regrets, however, that the decision was made without taking into account the long-standing complementary relationship between Brazilian production and Florida’s processing industry, as well as long-term partnerships with U.S. bottling companies,” Mr. Netto added.

Last year, the U.S. was the destination for 32.12% of Brazil’s orange juice exports.

*By Fernanda Pressinott, Globo Rural — São Paulo

Source: Valor International

https://valorinternational.globo.com/
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