A post-pandemic green recovery can bring to emerging countries much more than a return to economic activity, but to attract companies and promoting sustainable development, especially in Brazil.
This was one of the conclusions of a study by the Global Wind Energy Council (GWEC). On the other hand, the agency also warns that the country risks losing hundreds of thousands of green jobs, billions of dollars and billions of tonnes of saved emissions if it chooses another path.
In an interview with Valor, the GWEC’s CEO Ben Backwell and the executive president of the Brazilian Wind Energy Association (Abeeólica), Elbia Gannoum, emphasize that a political commitment is needed to mobilize private investment.
In total, Brazil could add an additional $8 billion of gross value added (GVA) to national economies in the recovery scenario. “This is an activity in which most of the investments come from the private sector. In addition, the industry is a huge job creator,” says Mr. Backwell.
In GWEC’s calculations, Brazil could see 575,000 green jobs over the lifetime of the wind farms if it opted for a green recovery rather than a business-as-usual approach.
Ms. Gannoum adds that more companies could land in Brazil because of the attractiveness of the business. Today, there are only six wind turbine manufacturers and two wind blade companies, but this number could grow more.
She recalls that, unlike what happened in developed countries that made billion-dollar recovery plans, in the case of developing countries, government does not have the capacity for the recovery.
“The renewable energy sector has a strong attraction for private investment and Brazil, in this scenario, should look at the situation as an opportunity. We have an abundance of renewable resources, so the energy transition is a great business opportunity for companies.”
From 2022 to 2026, the report calculates a 40% reduction in carbon emissions, helping the country accelerate progress in meeting its Paris Climate Agreement targets.
The report focuses on five countries – Brazil, India, Mexico, the Philippines and South Africa – each of which face specific challenges due to Covid-19 but which have significant untapped wind energy resources that can unlock rapid economic growth under green recovery measures.
“Unlike Mexico, where the government has practically stopped investments in the wind sector, Brazil has better conditions to develop the wind industry”, compares Mr. Backwell.
The executive says that this energy source grows significantly in the world, but it should be between three and four times bigger to reach the decarbonization goals. “We should be installing around 400 GW a year, but we are installing just under 100 GW.”
Source: Valor International