Brazil has officially declared its intention to join a charter of the Organization of Petroleum Exporting Countries and its allies (OPEC+), aimed at addressing the transition away from fossil fuels.
In December 2023, President Luiz Inacio Lula da Silva announced that Brazil — which ranks as the world’s eighth-largest oil producer — would engage with OPEC+, although no specific details were provided regarding the nature of this participation. OPEC+ comprises the 12 primary OPEC members along with ten additional leading crude oil producers, all collaborating to manage production levels and pricing strategies.
As part of the Charter of Cooperation (COC) among oil-producing nations, Brazil will undertake an advisory function, without any obligations related to production reductions or price controls.
OPEC welcomes decision
OPEC has expressed its support for the National Energy Council of Brazil’s (CNPE) recent decision, which officially allows Brazil to join the Charter of Cooperation (CoC) among oil-producing nations. This decision follows an announcement by Brazil’s Minister of Mines and Energy, H.E. Hon. Alexandre Silveira, during the 36th OPEC and non-OPEC Ministerial Meeting (ONOMM) on November 30, 2023. This announcement came after the historic visit of OPEC Secretary General H.E.Haitham Al Ghais to Brazil in October 2023, marking the first time an OPEC Secretary General visited the South American country.
Thanks to the leadership of HRH Prince Abdul Aziz bin Salman Al Saud, Saudi Arabia’s minister of Energy and chairman of the OPEC and non-OPEC Ministerial Conference, numerous visits and high-level meetings throughout 2024 culminated in this important announcement.
The Charter of Cooperation, established in July 2019, serves as a platform for dialogue and the exchange of views on the conditions and developments in global oil and energy markets. Its aim is to promote a secure energy supply and lasting stability for the benefit of producers, consumers, investors, and the global economy.
Read more: Brazil to host BRICS summit in Rio de Janeiro in July
Promoting clean technologies
Being a part of this charter allows Brazil to “promote discussions on the use of clean and alternative technologies for the financing of decarbonization projects,” as stated in a ministry announcement. The decision comes as Brazil is set to host the COP30 UN climate talks in November in the Amazon city of Belem.
Despite aspirations to position Brazil as a leader in the battle against global warming, President Lula has supported oil exploration, which he views as vital for the advancement of Latin America’s largest economy. His push for a significant oil project at the mouth of the Amazon River has faced backlash from environmental advocates.
In recent years, Brazil has experienced severe weather phenomena, including floods, droughts, and fires, which many experts attribute to global warming. Currently, the country is enduring a heatwave that has caused temperatures to rise sharply in Rio de Janeiro and Sao Paulo.
The OPEC+ Cooperation Charter is designed to improve communication and technical partnerships between OPEC and non-OPEC oil producers, with the goal of maintaining stability in the global oil market.
