Brazil claims to be an environmental leader. Are they?

World leaders and delegates are meeting in the northern Brazilian city of Belém for COP30, this year’s major UN climate summit.

This is the first time the global climate meeting has been held in the Amazon. The world’s largest rainforest helps keep the planet’s climate in balance by removing carbon dioxide from atmosphere and storing it in dense forest and nutrient-rich soil. The Amazon Rainforest holds an estimated 56.8 billion tonnes of carbon in its trees, more than one and a half times the carbon released by human activities in 2023.

For host nation Brazil, this meeting is both an opportunity and a test.

President Luiz Inácio Lula da Silva (known as Lula) wants to show the world his country can lead on climate action and speak for the global south. He has also proposed a new Tropical Forests Forever fund to channel long-term financing to countries that protect rainforests.

Brazil is already known for its low-emissions electricity system (mostly hydropower), long-established biofuel industry (biofuels supply about 25% of the country’s transport energy), and expanding wind and solar sectors.

What’s at stake?

COP30 will take place at a critical moment for global climate action. The world is not on track to limit warming to 1.5 °C, and trust between rich and developing nations remains fragile.

Brazil has signalled it will use the summit to highlight the Amazon’s role in stabilising the global climate and to press for fairer access to climate finance for the global south. Lula has called for stronger international cooperation and more support for countries protecting tropical forests.

For Australia, which is bidding to host COP31 in 2026, Brazil’s experience may offer a preview of the opportunities and political tensions that come with hosting a global climate summit.

Brazil’s environmental credentials

Brazil describes itself as an environmental leader. In some areas, this claim holds weight. More than 80% of its electricity comes from renewable sources, mainly hydropower. It has a strong biofuel industry and rapidly expanding wind and solar power. Brazil’s ethanol program, launched in the 1970s to reduce dependence on imported oil, remains one of the most established in the world.

Even so, environmental pressures remain intense. Land-use change, especially rampant deforestation in the Amazon and Cerrado (tropical savanna) regions, still accounts for about half of Brazil’s greenhouse gas emissions. At the same time the agribusiness sector – broadly defined as farm production, processing, inputs and services – is a major economic force (about a fifth to a quarter of GDP) and carries substantial political influence.

Official data shows deforestation in the Amazon fell by about 11% in 2024-25, with around 5,800 square kilometres of forest lost (roughly half the size of greater Sydney). Illegal mining continues to affect Indigenous territories and river systems, while large cities struggle with air and water pollution.

Adding to the tension, Brazil’s environment agency recently authorised Petrobras, the state-owned oil company, to drill exploratory wells off the mouth of the Amazon River. Belém, where COP30 is being held, is also on the mouth of the river.

The approval is for research drilling to assess whether oil extraction would be viable, yet the timing, weeks before COP30, has drawn criticism from environmental groups. It raises questions about how Brazil will reconcile its clean-energy reputation with its fossil-fuel ambitions.

Political whiplash takes a toll

Brazil’s recent political upheavals have left a deep mark on its environmental record. During Jair Bolsonaro’s presidency (from 2019 to 2023), key environmental agencies were weakened, enforcement declined, and illegal deforestation and mining surged. Protections for Indigenous lands were largely ignored, and international partnerships such as the Amazon Fund were suspended. By 2021, Amazon deforestation reached its highest level in more than a decade.

Lula’s return to power in 2023 signalled a change in direction. His government restored the Amazon Fund, resumed environmental enforcement and reengaged with global climate negotiations.

Deforestation rates have since fallen, and Brazil’s reputation abroad has partially recovered. Yet Lula faces competing pressures at home. Agribusiness remains politically powerful, and the government’s focus on economic growth makes it difficult for Brazil to fully align its environmental goals with its development agenda.