Brazil Joins OPEC+ As It Balances Oil Growth And Climate Commitments

 

Brazil has officially approved joining OPEC+, marking a significant step in its rise as a major oil-producing nation—just months before it hosts the United Nations’ annual climate summit.

The decision, made by the National Council for Energy Policy, follows an invitation extended in 2023. OPEC+ consists of the 12 core OPEC members, which coordinate oil production to stabilize markets, along with 10 additional oil-producing nations, including Russia.

No Production Cuts, Just a Strategic Forum

While joining OPEC+ aligns Brazil with major global oil exporters, Mines and Energy Minister Alexandre Silveira emphasized that Brazil will not be subject to mandatory production cuts. Instead, he described OPEC+ as “a forum for discussing strategies among oil-producing countries.”

“We should not be ashamed of being oil producers,” Silveira stated. “Brazil needs to grow, develop, and create income and jobs.”

Balancing Oil Expansion with Environmental Goals

President Luiz Inácio Lula da Silva, who returned to office in 2023 with a strong environmental agenda, has worked to curb Amazon deforestation and protect Indigenous rights. However, he has also argued that increased oil revenues could help fund a transition to green energy.

In line with this, he has pushed for exploratory drilling near the mouth of the Amazon River—one of the world’s most biodiverse regions—despite environmental concerns.

Brazil currently ranks as the world’s seventh-largest oil producer, contributing about 4.3 million barrels per day, or roughly 4% of global production. In 2024, crude oil became Brazil’s top export, accounting for 13.3% of the country’s foreign sales, surpassing soy.

Controversy Ahead of COP30

As Brazil prepares to host COP30 in November, Lula’s oil expansion plans have drawn criticism. The annual climate summit focuses on reducing fossil fuel use, and Brazil’s alignment with OPEC+ sends a conflicting message.

“Brazil’s entrance to any OPEC body is another sign of the government’s setback,” said Suely Araújo, a spokesperson for the Climate Observatory, a coalition of environmental and academic groups. She warned that expanding fossil fuel exploration prioritizes outdated solutions over urgently needed climate action.

With global pressure mounting, Brazil now faces the challenge of balancing its growing influence in the oil sector with its environmental commitments on the world stage.