LatAm Grid & Ground: Weekly Newsflow: Renewable, BESS, Carbon Markets, El Niño

Research evidence excerpt

LatAm Grid & Ground: Weekly Newsflow: Renewable, BESS, Carbon Markets, El Niño

non-repayable resources for applied research.

Fertilizer supply risks reinforce domestic production efforts

According to Eixos, disruptions in fertilizer trade linked to tensions in the Middle

East continue to raise concerns over Brazil’s supply security, particularly given the

country’s heavy dependence on imports. At the same time, Valor reported that

Brazil is advancing domestic fertilizer production through new projects,

government incentives, and the restart of Petrobras facilities, with industry

estimates pointing to a significant reduction in external dependence on nitrogen

fertilizers by 2032.

Carbon Markets expand across agriculture and Renewable Energy

Valor published that carbon credits are emerging as a new source of revenue for

Brazilian farmers, although the sector still accounts for only 2% of global

agricultural carbon credits. Advances in technologies such as remote sensing, AI,

and soil carbon modeling are helping reduce measurement costs and improve

scalability, while the implementation of Brazil’s regulated carbon market (SBCE)

and international mechanisms under the Paris Agreement could expand demand for

agricultural credits. Also, MegaWhat reported that the Foz do Chapecó hydropower

plant completed its first international carbon credit transaction, selling 10,000

verified carbon credits through a partnership between Axia Energia and

Switzerland’s Ameron Energies. In parallel, Valor highlighted that Brazil is

advancing the implementation of its regulated carbon market (SBCE), with around

400 companies expected to fall under initial emissions reporting requirements from

2027, covering sectors such as oil & gas, aviation, cement, steel, aluminum, and

pulp & paper.