Brazilian President Luiz Inácio Lula da Silva has intensified his push for a large-scale oil project at the mouth of the Amazon River, despite environmental concerns, as the country gears up to host the COP30 climate summit in November. Lula, who has ambitions to position Brazil as a leader in the fight against climate change, has staunchly defended oil exploration as crucial to the growth of Latin America’s largest economy.
“We want oil because it will be around for a long time,” Lula said on Wednesday, arguing that revenue from oil should help finance the costly energy transition.
This comes as Brazil’s environmental protection agency, IBAMA, is considering whether to grant state-owned Petrobras an exploration license in the offshore Equatorial Margin, an area spanning 350,000 square kilometers (135,000 square miles) in northern Brazil, about 500 kilometers (310 miles) from the Amazon’s mouth. Petrobras estimates the region contains 10 billion barrels of oil reserves. Brazil’s proven reserves totaled 15.9 billion barrels in 2023, according to government data.
However, the project has drawn heavy criticism due to the role of fossil fuels in driving climate change.
‘Waging War for Peace’
Lula’s first two years in office saw significant environmental achievements, including a dramatic reduction in deforestation and the strengthening of greenhouse gas emission reduction goals. But experts argue that the oil project threatens to undermine these environmental gains, especially as COP30 prepares to take place for the first time in the Amazon, in Belem.
“You can’t be a climate leader and at the same time push for more fossil fuel production,” said Suely Araujo, a former IBAMA president and current climate advocate with the Brazilian NGO Climate Observatory.
Araujo likened the rationale of using oil revenue for the energy transition to the notion of “waging war to obtain peace.” She added, “Opening up the Amazon for fuel exploration contradicts the government’s rhetoric of preserving the Amazon to regulate the climate,” echoed by Ilan Zugman, Latin America director of the climate group 350.org.
Brazil is already a leader in renewable energy, with nearly half of its energy consumption coming from renewable sources—more than three times the global average. However, it is also Latin America’s largest oil producer and the eighth-largest in the world, producing 3.4 million barrels of oil per day in 2024.
Lula pointed out that neighboring countries like Guyana and Suriname are already exploring oil near Brazil’s Equatorial Margin. “We need to find a solution that ensures the country, the world, and the people that we will not harm any trees, the Amazon River, or the Atlantic Ocean,” Lula stated this week.
Toya Manchineri of the Coordination of Indigenous Organizations of the Brazilian Amazon warned that the project could jeopardize Indigenous communities and lead to “irreversible environmental damage” through deforestation and river pollution.
Government Divisions
The oil project has caused rifts within Brazil’s government. IBAMA previously rejected Petrobras’ license application in 2023, but the oil company has since submitted a revised proposal, which is still under review. In October 2024, IBAMA demanded more information from Petrobras on how it plans to prevent an oil spill in the ecologically sensitive region.
In December, Petrobras provided further details, which are currently being evaluated by IBAMA’s technical team.
Tensions have also emerged within the administration itself. Environment Minister Marina Silva, who oversees IBAMA, emphasized that the decision would be “technical” and not politically influenced. On the other hand, Mines and Energy Minister Alexandre Silveira, a strong proponent of the project, urged IBAMA to act with “common sense” and approve the exploration without delay.
