Bolsonaro signs decree extending the use of coal-fired energy until 2040.
The measure is likely to benefit the state of Santa Catarina, a political stronghold of Jair Bolsonaro.
Sputnik - Jair Bolsonaro (PL) approved a bill that guarantees the contracting of energy generated by coal-fired thermal power plants until 2040.
This measure is part of the Just Energy Transition Program. The law was published in the edition of this Thursday, the 6th, of the Official Gazette of the Union.
Although the text is seen as an incentive for the production and consumption of coal-fired energy, which is more polluting, the measure tends to benefit the state of Santa Catarina, the president's political stronghold.
The new legislation mandates the extension of contracts for the Jorge Lacerda power plants in Santa Catarina until 2040. This means that, until that date, the plants in the region will continue generating energy for the national electricity grid.
With this determination, Brazil is going against the grain of global decarbonization efforts. Last November, the country, along with more than 40 heads of state, made a commitment to eliminate the use of coal-fired power.
The agreement was signed during COP26 (United Nations Climate Change Conference) in Glasgow, Scotland.
With President Bolsonaro's decision, subsidies included in electricity bills will be passed on to power plants until 2025. After that, and until 2040, these subsidies will no longer be offered.
The General Secretariat of the Presidency of the Republic said that the sanction "will be important to promote a just energy transition for the coal-mining region of the state of Santa Catarina."
According to the document, the measures were designed taking into account "the environmental, economic and social impacts and the valuation of energy and mineral resources, as well as supporting small-scale public electricity distribution service concessionaires".
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