Brazil’s Lula Backs Oil Exploration in Amazon Ahead of Hosting UN Climate Talks

In a move that has sparked both controversy and debate, Brazilian President Luiz Inácio Lula da Silva has thrown his support behind oil exploration near the mouth of the Amazon River. This decision comes just months before Brazil is set to host the United Nations Climate Change Conference (COP30) in November 2025, raising questions about the country’s commitment to its climate leadership role.

Lula’s administration argues that the potential revenue from oil exploration could fund Brazil’s transition to renewable energy. However, environmentalists and climate advocates warn that the move could undermine Brazil’s credibility on the global stage and jeopardize one of the most biodiverse regions on the planet.

The Push for Oil Exploration in the Equatorial Margin.

The focus of the debate is Bloc 59, an offshore oil exploration site located approximately 160 kilometers off Brazil’s eastern coast in the Equatorial Margin. This region, near the mouth of the Amazon River, is home to rich marine biodiversity and is considered ecologically sensitive. In May 2023, Brazil’s environmental regulator, Ibama, denied a license for exploratory drilling in the area, citing concerns about inadequate plans to protect wildlife in the event of an oil spill.

Petrobras, Brazil’s state-owned oil company, appealed the decision, and the case remains unresolved. Lula’s recent comments, however, suggest a renewed push to overturn Ibama’s ruling.

“I want to investigate it (oil). But before exploring, we need to research and see if there is oil and how much oil there is,” Lula said in an interview with radio station Diario. He criticized Ibama, stating, “We cannot continue this pointless, never-ending conversation—Ibama is a government agency, yet it appears to be working against the government.”

Balancing Oil Revenue and Renewable Energy.

Lula’s administration has framed the push for oil exploration as a necessary step to fund Brazil’s energy transition. Brazil is already a major oil producer, with output comparable to Iraq, and is increasingly becoming an exporter. At the same time, the country boasts one of the cleanest energy grids in the world, with approximately 90% of its electricity coming from renewable sources, primarily hydropower.

“We will follow all the necessary procedures to ensure no harm to nature, but we can’t ignore the wealth beneath us and choose not to explore it—especially because this wealth will provide the funds for the much-needed and long-awaited energy transition,” Lula said.

The president’s argument hinges on the idea that oil revenues could accelerate investments in renewable energy infrastructure, such as wind, solar, and biofuels. However, critics argue that expanding fossil fuel exploration contradicts the urgent need to reduce global carbon emissions and transition away from fossil fuels.

Environmental Concerns and Climate Leadership.

The timing of Lula’s push for oil exploration is particularly contentious, as Brazil prepares to host COP30 in Belém, a port city located just a few hundred miles from Bloc 59. The conference is expected to draw global attention to Brazil’s environmental policies, particularly its efforts to protect the Amazon rainforest and combat climate change.

Marcio Astrini, executive secretary of the Climate Observatory, a network of 133 environmental, civil society, and academic groups, criticized Lula’s stance. “President Lula often says that Brazil should lead by example,” Astrini told The Associated Press. “Exploring more oil is not a model action in the climate agenda.”

Environmentalists warn that drilling in the Equatorial Margin could have devastating consequences for the region’s ecosystems. The Amazon River mouth is a hotspot for marine biodiversity, and an oil spill could irreversibly damage this fragile environment. Ibama’s initial denial of the drilling license highlighted these risks, emphasizing the lack of a robust plan to mitigate potential disasters.

The Global Context: Fossil Fuels and Climate Goals.

Lula’s decision to prioritize oil exploration reflects a broader tension faced by many resource-rich countries. While fossil fuel revenues can provide significant economic benefits, they often come at the expense of climate goals. The International Energy Agency (IEA) has repeatedly warned that new fossil fuel projects are incompatible with limiting global warming to 1.5°C above pre-industrial levels, a key target of the Paris Agreement.

Brazil’s position as a climate leader has been bolstered by its success in reducing deforestation in the Amazon under Lula’s administration. However, the push for oil exploration risks overshadowing these achievements and sending mixed signals to the international community.

The Road to COP30.

As Brazil prepares to host COP30, the world will be watching closely to see how the country balances its economic interests with its climate commitments. Lula’s administration has an opportunity to showcase Brazil as a leader in both environmental protection and sustainable development. However, the decision to pursue oil exploration near the Amazon could complicate this narrative.

For now, the fate of Bloc 59 remains uncertain. Petrobras’s appeal is still pending, and Ibama’s final decision will likely set a precedent for future oil and gas projects in environmentally sensitive areas. In the meantime, the debate over Brazil’s energy future continues, with environmentalists urging the government to prioritize renewable energy over fossil fuels.

Conclusion.

President Lula’s support for oil exploration near the Amazon River mouth highlights the complex challenges of balancing economic development with environmental protection. While the potential revenue from oil could fund Brazil’s transition to renewable energy, the environmental risks and the timing ahead of COP30 raise significant concerns.

As the world grapples with the urgent need to address climate change, Brazil’s decisions will have far-reaching implications. The country’s ability to reconcile its economic ambitions with its climate leadership role will be a key test in the coming months, particularly as it prepares to host one of the most important global climate summits in recent history.

For now, the question remains: Can Brazil truly lead by example, or will the pursuit of oil wealth undermine its climate goals? The answer may well determine the future of the Amazon—and the planet.

This story was originally published by The Associated Press on February 17, 2025, and republished by The Canadian Press on February 12, 2025.