Accelerating Just Energy Transitions in Brazil: Pathways for Social Development

Abstract

This critical article analyzes energy poverty in Brazil from the theoretical perspective of distributive justice, proposing the implementation of a new social regulation called Contribution to Social Development. The goal is to support the process of a just energy transition leading to a broader debate on energy planning and social issues. Social Cost-Benefit Analysis was applied to assess the impact of the Contribution to Social Development formulated to reduce extreme poverty at the local level. In addition, field research was conducted at a wind farm in Brazil to capture the benefits of this approach. The simulation carried out in the field study demonstrates a significant reduction in extreme poverty, from 66 to 5 families with the implementation of a 1% Contribution to Social Development. The integration of the proposed Contribution to Social Development into the regulatory framework of the electricity sector has the potential to reduce inequality substantially while promoting the use of renewable energy in Brazil and in Latin American and Caribbean countries. It would contribute to promote a socially just and long-term energy transition with a positive effect on fighting global climate change.