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Brazil extends coal use to 2040 under new 'just transition' law
REEI 2022/01/07

Brazil will continue to use and subsidize coal as an energy source until at least 2040, according to a so-called "just energy transition" law published on Thursday, which policy experts said goes against the climate and consumers.

Broadly, "just transition" is a process aimed at ensuring the benefits of a green economy shift are shared widely, while supporting those who may lose out economically, whether nations, regions, industries, communities, workers or consumers.

But Brazil's new law - far from promoting the adoption of climate-friendly clean fuels - benefits coal producers in southern Santa Catarina state by prolonging the activities of coal-based power plants in the region for a further 18 years.

Under previous policies, Brazilian subsidies for thermal coal-powered plants were supposed to end by 2027, and the authorization for three large plants in Santa Catarina to operate was meant to expire in 2025.






Guest post from Reuters