Haddad and Marina react to the alliance with OPEC in the middle of COP28 – 12/01/2023 – Environment

The announcement that Brazil will join OPEC+ — the group of countries allied to the Organization of Petroleum Exporting Countries (OPEC) — provoked different reactions from two ministers from President Luiz Inácio Lula da Silva’s government who are participating in the UN climate conference (COP28).

On Thursday (30), OPEC announced that Brazil intends to adhere to the entity’s charter in January 2024, after the participation of the Minister of Mines and Energy, Alexandre Silveira, in a videoconference of the entity.

In Dubai, this Friday (1st), Lula did not speak publicly about the matter. But the Ministers of Finance, Fernando Haddad, and Minister of Environment and Climate Change, Marina Silva, expressed different positions on the issue.

Haddad said he did not know whether Brazil would even join OPEC+ and suggested that the decision may not have been made definitively yet.

“I don’t know the terms of the invitation. Brazil will have until June to decide,” the minister told the press after an event in which he launched an investment plan in green energy.

“I believe that the oil industry has to be the first to invest in decarbonization. It is largely responsible for the problem we are facing. There is nothing like companies in the sector, like Petrobras is doing, investing more and more resources in decarbonization and heavy investment in clean energy research and production.”

Haddad stated that the problem of global warming caused by fossil fuels “exists, no one is denying it.”

Minister Marina Silva stated that Brazil’s accession to OPEC+ means that the country will be able to use this space to defend cleaner energy sources.

“Firstly, Brazil will not participate in OPEC. It will participate as an observer, including to take advantage of the debates and technological contributions,” said Marina, alongside Haddad in Dubai.

“Brazil can have a 100% clean energy matrix and help the world to also make its energy transition with green hydrogen. Obviously, oil producing countries will have to understand exactly what the minister has just said.”

She said that it is not a contradiction for Brazil to be in OPEC+ and defend the reduction of the use of fossil fuels.

‘Slow pace’

“If we are going to lead the debate on the green economy, on the need to decarbonize the planet, it is not [é uma contradição o Brasil entrar na Opep+]. It is exactly to take the debate that needs to be faced within the scope of those spaces that are the major producers of fossil fuel, which is largely responsible for the warming of the planet”, said the minister.

“Everyone knows that humanity’s biggest problem is facing the problem of fossil fuels. Brazil cannot be put in the place of the problem, it is part of the solution.”

Both Lula and the Minister of Mines and Energy did not mention the subject this Friday.

In the early afternoon, a few hours after the release of the OPEC+ note talking about Brazil’s accession, Lula made his first speech at the UN high-level leaders’ session on climate change.

“It’s time to face the debate about the slow pace of decarbonization of the planet and work for an economy less dependent on fossil fuels. We must do it urgently and fairly,” said Lula in his speech in Dubai.

“How many world leaders are actually committed to saving the planet?”

Brazil’s decision to join a group of major oil producers surprised many activists participating in COP28 in Dubai.

The UN climate conference is the main global forum to discuss climate change – and scientists say the planet is warming at a much faster rate than originally predicted.

Brazil arrived at the meeting with the ambition of becoming one of the global leaders in the fight against global warming – and one of the problems highlighted by scientists is precisely the burning of fossil fuels on a large scale.

But in the video meeting with OPEC+ ministers on Thursday (30), Lula’s Minister of Mines and Energy praises OPEC+ for generating “benefits for oil-producing countries” and also for fossil fuel consumers.

“The OPEC+ agreement has effectively preserved the stability of the oil and energy markets. This stability brings benefits not only to oil producing countries but also — and mainly — to consumers, directly reflecting on the global economy,” said Silveira.

“I would like to conclude my words by informing that the excellent President Lula confirmed our OPEC+ cooperation letter starting in January 2024. This is a historic moment for Brazil and the energy industry, opening a new chapter of international dialogue and cooperation in the energy field.”

OPEC has existed since 1960. The entity jointly negotiates production cuts or increases that move international prices.

In the 1970s, these cuts generated international economic crises – which strongly affected industrialized countries, such as the United States.

The entity that Brazil can join is called OPEC+ and was formed in 2016. OPEC+ countries can voluntarily agree to make production cuts – but they are not obliged to do so.
man walking in front of logo

Hamas and Mercosur hostages

Lula had a busy schedule in Dubai — but with many bilateral commitments not necessarily related to the environment.

The president met with the UN Secretary-General, Antonio Guterres, with the President of the European Commission, Ursula Van Der Leyen, with the President of Israel, Isaac Herzog, and with the President of Spain, Pedro Sánchez.

The Ministry of Foreign Affairs said that Lula spoke with Sánchez and Van Der Leyen about the Mercosur-European Union agreement.

Itamaraty said that Lula and Van Der Leyen commented that there had been “significant progress in the meetings between the technical teams of both sides, particularly after the last telephone call between them. They committed to continuing the negotiations until the next Mercosur summit and exchanged views on the conflict in the Middle East”.

Brazilian and European authorities have expressed a rush to sign the agreement that was negotiated years ago, before Argentina’s new president, Javier Milei, takes office, as the Argentine opposes Mercosur.

With President Israel, Lula spoke about the situation of the Hamas hostages – but no further details were given about the dialogue.

In Lula’s meeting with Guterres, Brazil’s role in the G20 presidency was discussed and how the UN can help in this process.

They also discussed the role of global governance institutions. Lula highlighted the importance of reforming the UN, especially the Security Council – a historic demand from Brazil.

Meetings with British Prime Minister Rishi Sunak and the President of Guyana, Mohamed Irfaan Ali —which were initially on Lula’s agenda—did not take place.

This text was originally published here.