Prospects for the development of cooperation between the Russian Federation and the Federative Republic of Brazil in the field of green energy

Tikhomirova Karina Sergeevna ORCID: 0009-0006-4421-431X Graduate student; Department of Foreign Regional Studies and Local History; N.I. Lobachevsky National Research Nizhny Novgorod State University 23 Gagarin Ave., Nizhny Novgorod, Nizhny Novgorod Region, 603022, Russia ariafan1013@gmail.com Other publications by this author

Ruchina Valeriya Mikhailovna ORCID: 0009-0001-7675-3100 Graduate student; Department of Foreign Regional Studies and Local History; N.I. Lobachevsky National Research Nizhny Novgorod State University 23 Gagarin Ave., Nizhny Novgorod, Nizhny Novgorod Region, 603022, Russia v.ruchina2016@gmail.com Other publications by this author

Introduction

In today's world, faced with the threat of climate change and the depletion of natural resources, many countries recognize the need to move towards sustainable and environmentally friendly development. One of the key directions in this process is the development of green energy based on the use of renewable energy sources. Solar, wind, hydro and bioenergy are becoming increasingly important in the energy sector of many countries, and the transition to the use of these types of energy is accompanied not only by economic benefits, but also by a significant reduction in the negative impact on the environment.

In this context, Russia and Brazil, as countries with vast territories and rich natural resources, have a special potential for developing the green energy sector both within the framework of each country's energy policy separately and in bilateral cooperation. Both countries are expanding the possibilities of using various types of renewable energy sources, and therefore cooperation between these two states can become an important factor in promoting this direction in global realities.

Development of green energy in Brazil

Brazil deservedly claims to be one of the most energy-friendly countries in the world. This circumstance is largely due to the geography of the country: the vast territories of tropical forests and the presence of large rivers allow the most intensive use of solar and hydropower in the balance of the country. Speaking of environmental pollution, it is worth noting that the main source of pollution in Brazil is traditionally deforestation, which can be compensated through the country's rainforest protection and conservation policy ^[1]. 93% of the energy generated in the country is produced using renewable energy sources. This means that Brazil has the largest share of green energy among the world's largest economies ^[2]. A special role in the energy structure of the country is occupied by the operation of hydropower plants, hydro-energy accounts for 68% of the energy produced in Brazil. The operation of solar power plants also plays an important role. Due to a sharp increase in solar energy production in 2023, from 4.2% of total energy consumption in 2022 to 6.6% in 2023, we can talk about a significant expansion of the boundaries of the potential for the development of this energy resource. The percentage of wind energy usage is growing: it accounts for 18% of the total energy consumption of the country. In addition, Brazil remains the world's second largest producer of ethanol for sugarcane-based biofuels ^[3]. The development of the hydrogen energy industry also occupies a special place in the country's energy agenda ^[4]. In 2021, based on many years of research in this area, a national program for the development of the hydrogen industry was adopted with an emphasis on intensifying scientific research, training qualified personnel, and developing a regulatory framework for the production and commercialization of hydrogen.

Due to the high share of renewable energy sources in the energy matrix, Brazil has highly competitive conditions for the production of green hydrogen, which creates favorable conditions for its transformation into an export hub for this type of goods. According to available estimates, the unit cost of green hydrogen produced in the country in 2030 will be no more than $1.5 per kg ^{[5, pp. 115-116]}.

The basis of the country's energy strategy is the National Energy Plan of Brazil for 2050 (NEP-2050), published during the Covid-19 pandemic, which defines long-term strategies for the development of the country's energy sector ^[6]. Within the framework of this strategy, two possible scenarios for the development of the country's energy sector were identified: a stagnation scenario and a scenario for expanding energy consumption. According to the available data, it can be argued that Brazil is currently on the path of expanding energy consumption, which is increasing by 2.2% annually. This circumstance indicates the need to expand the development potential of the country's energy sector, both in terms of productivity and energy intensity, and in terms of its low-carbon performance. Therefore, the main priorities of the country in the energy strategy until 2030 and in the long-term strategy until 2050 remain infrastructure investments in projects for the development of energy infrastructure, the construction of new solar power plants, expanding the potential of wind energy through projects for the construction of massive offshore wind turbines, as well as expanding the use of peaceful nuclear energy as one of the potential sources of environmentally friendly energy, as well as the means to produce hydrogen in large quantities, necessary for export to European countries ^[7].

Brazil is going to attract hundreds of billions of dollars for the introduction of innovative technologies in the field of green energy. The plan involves the creation of a regulated carbon trading market, taking into account the country's natural and geographical features: biotechnologies will be developed in the Amazon rainforest, and renewable energy generators will be put into operation in the northeastern regions, where there is a lot of sun and wind. Brasilia intends to implement the most ambitious energy transition plan among developing countries, and for its implementation the country will require large investments involving public and foreign investments^[8]. In this regard, Brazil can benefit from cooperation with a country such as the Russian Federation. After all, both countries are actively building up their partnership in this area, participating in the BRICS International Forum and generally contributing to sustainable development in the field of green innovation, ESG initiatives and taxonomy harmonization. Brazil also shares and uses its experience in promoting energy-efficient technologies in cooperation with other BRICS countries, promoting its national interests aimed at reducing energy consumption and promoting sustainable development. In this way, Brazil contributes to the promotion of sustainable and clean energy sources, the generation of renewable and bioenergy, and the strengthening of energy security.

Green initiatives in Russia

Russia is one of the largest producers and exporters of energy in the world, which undoubtedly plays an important role in the global energy sector. However, in recent decades, there has been a growing awareness of the need to switch to more environmentally friendly energy sources due to the threat of climate change and sustainable development. Therefore, green energy based on the use of renewable energy sources is becoming more and more relevant for Russia. At the same time, it should be noted that the speed of development of this area in Russia is significantly inferior to Brazil due to the abundance of natural resources in the country, which leads to low profitability in the development of the green energy sector, as well as the highly developed field of peaceful atom.

Despite the fact that green energy still makes up a small part of Russia's overall energy mix, its share is gradually increasing. In the field of solar energy, there is a steady increase in installed capacity. For example, in the last three years alone, the installed capacity of solar power plants has increased by 30%, reaching 2.5 gigawatts. Wind energy is also showing significant progress: over the same period, the installed capacity of wind farms increased by 20%, reaching 1.8 gigawatts^[9]. Russia continues to occupy one of the leading positions in the world in the hydropower sector. More than 20% of the electricity produced in the country is provided by hydroelectric power plants ^[10]. At the same time, the Russian Federation is facing challenges in the development of this industry, as the country needs to develop infrastructure and improve the regulatory environment for investments in green energy. Strategic goals for a long-term increase in the share of green energy in the country's energy mix should include further growth in installed capacity and increased efficiency in the use of renewable energy.

The total installed capacity of renewable energy sources (RES) in the Russian energy system as of July 1, 2023 was 6.04 GW, the percentage of RES in the total energy consumption of the country was only 0.8% against the European average of 25% ^[11]. Wind energy remains the main source of renewable energy in Russia, followed by small hydropower plants and solar power plants. From January to July 2023, five green power plants were commissioned in Russia, three of them in the second quarter. The combined capacity of these renewable energy facilities is 264.3 MW, which cannot be compared with the capacity generated in Brazil. However, the government is actively encouraging the development of carbon-neutral energy. For example, starting in 2021, within the framework of the wholesale electricity and capacity market, there is a new mechanism for stimulating investments in renewable energy generating facilities, which provides for the capitalization of the generated capacities. This increased the inflow of investments into this sector of the Russian economy and contributed to the implementation of the above-mentioned projects. In addition, the Russian government considers the development of hydrogen energy as the basis of green energy in the country, as well as as a potential area for investment.

The development of national potential in the field of hydrogen production, application and export, as well as Russia's entry into the leading countries in this industry, are set out in the Hydrogen Energy Development Concept approved by Prime Minister Mikhail Mishustin. The strategic initiatives presented in the document will serve to achieve the goals, including the launch of pilot projects for the production of low-carbon hydrogen, the creation of consortia for the production of equipment and components, and the formation of infrastructure for the storage and transportation of this energy carrier. The document also lists the priority technologies needed for the development of the industry. These include, in particular, the production of hydrogen through steam conversion of methane and coal gasification, carbon dioxide capture technologies, the creation of hydrogen power plants for transport, special filling stations, storage and transportation systems for hydrogen in liquefied form. Government support measures will provide an additional incentive to introduce these technologies. Industry representatives will have access to special investment contracts, subsidies for the manufacture of pilot batches of products, and compensation to cover the costs associated with conducting scientific research ^[12].

It is hydrogen energy, as well as the development of green technologies and the expansion of the production of fertilizers necessary for the creation of biofuels, that are the most promising areas of cooperation between the countries within the framework of green energy. In addition, Russia's extensive experience in working with peaceful atom technologies is of particular interest to Brazil, as is the experience of Russian companies in exploring new natural gas and oil fields.

Cooperation with the BRICS countries opens up new prospects and opportunities for Russia in the context of renewable energy development and achieving the UN Sustainable Development Goals (hereinafter the UN SDGs). Russia, among other BRICS members, traditionally expresses its commitment to the UN SDGs and makes efforts to include these goals in its own national development strategy ^{[13, pp. 106-128]}. This circumstance also allows Russia to occupy high positions in the ranking of countries according to the SDG indicator: in 2024, Russia ranked 56th out of 166 countries. Considering that 6 of the 17 SDG indicators relate to the goals of climate and environmental protection, and point No. 7. Inexpensive and clean energy is a direct indicator of the development of renewable energy sources, we can talk about the high intensity of the development of green energy in Russia at the international level ^[14].

Russia's commitment to the development of green energy is also reflected in the Joint Statement adopted at the BRICS high-level meeting in May 2022, where Russia outlined its intention to restructure industry and energy with a greater focus on renewable energy sources and "clean energy" ^[15]. In addition, the St. Petersburg Economic Forum and Energy Weeks are held annually in Russia to constantly update the issue of climate change and support renewable energy initiatives.

Modern aspects of bilateral cooperation between Russia and Brazil in the field of green energy

Russia and Brazil have significant experience in bilateral cooperation, and green energy initiatives occupy a special place in building a line of dialogue between the two countries. Undoubtedly, cooperation between countries within the framework of such an international association as BRICS plays an important role in the development of such initiatives. Within the framework of the forum, countries are actively involved in discussing the topics of decarbonization, achieving carbon neutrality and energy security on the agenda. Within the framework of the BRICS, Russia and Brazil are developing joint technologies to ensure the sustainable development of the energy sector. Russian companies also frequently invest in Brazilian energy and climate initiatives and promote the use of innovative technologies in this sector. An important factor in the development of the energy sector was the participation of the Brazilian Republic in the 25th World Energy Congress, which was held in Russia for the first time on October 24-27, 2022. On the sidelines of the St. Petersburg International Economic Forum in 2022 (SPIEF-2022), the countries were also able to build a high-quality business dialogue between Russia and Latin America, within the framework of Issues related to the development of the electric power industry, transformation of energy systems and decarbonization were discussed.

Rosatom, one of the largest Russian companies, actively cooperates with the BRICS countries in the field of nuclear energy, including Brazil. The countries had experience of cooperation in the field of green energy even before the creation of the BRICS in 2009, but since then cooperation has reached a qualitatively new level. The first agreement between Russia and Brazil in the field of nuclear energy was signed in 1993. Since then, Rosatom has become one of the largest suppliers of isotope products for the needs of nuclear medicine in Brazil.

The countries are also strengthening cooperation in the field of the nuclear fuel cycle. Rosatom, for example, participated in the largest nuclear industry event in Latin America, the Nuclear Trade and Technology Exchange (NT2E), which took place in May 2023 in Rio de Janeiro, Brazil. Kirill Komarov, the company's First Deputy CEO, actively discussed the importance of nuclear energy in investing in green initiatives at the conference. It was noted at the conference that nuclear energy is a sustainable source of energy that is not subject to turbulence in the external market. For example, in the case of rising uranium prices, the final cost of electricity will not change much, since the share of uranium in the total pricing volume is less than 3% ^[16]. At the conference, the countries also signed another contract for the supply of natural uranium between Rosatom and INB (Industrias Nucleares do Brasil), which also contributed to the promotion of nuclear energy initiatives ^[17]. It should be noted here that Brazil ranks 7th in the world in terms of uranium reserves, despite the fact that only 26% of its potential deposits have been studied, but at the moment it does not have an effective industry for processing and enriching the natural component, which makes technological cooperation with Russia in this area extremely promising for the country ^[18].

The partnership between Russia and Brazil in the field of nuclear energy is coordinated by the Agreement between the Government of the Russian Federation and the Government of the Federal Republic of Brazil on Cooperation in the Field of Peaceful Uses of Atomic Energy. In September 2021, Rosatom and the Brazilian company Electronuclear signed a memorandum of understanding, in which they emphasized the importance of cooperation in such areas as the maintenance and construction of large and small nuclear power plants, the processing of nuclear materials, and the implementation of projects in the field of education and nuclear medicine. In September 2022, Rosatom and the Brazilian holding company ENBPar signed a memorandum securing assistance from the Russian side in the construction of the Angra-3 power unit. A subsidiary of Rosatom and Industrias Nucleares do Brasil have signed a contract for the supply of enriched uranium products to meet the needs of the Angra NPP for 2023-2027. In March 2023, the corporation won a tender for the supply of lithium-7 hydroxide, a component for the Angra-3 cooling system. Rosatom is a major supplier of medical isotopes in Brazil, whose share of supplies accounts for almost half of all radioisotope products purchased by the Brazilian Institute of Energy and Nuclear Research. In general, cooperation in the field of nuclear medicine between the countries is maintained at a high level ^{[19, pp. 186-188]}.

Brazil also focuses on cooperation with Russia, China and India in the field of nuclear energy. In September 2022, the Brazilian company Participações em Energia Nuclear e Binacional SA (ENBPar) and the previously mentioned Rosatom signed a Memorandum of Understanding (MoU) with the aim of developing mutually beneficial cooperation in the field of nuclear energy. In addition to joint research and development, this type of cooperation includes exploring the possibilities of peaceful uses of nuclear energy for medical purposes and for desalination of water.

Brazil is implementing a project for the exploration and development of hydrocarbons at licensed sites in the Solimoines River basin, and is considering the possibility of joining new projects, including the Arctic project for the development of deep-water offshore fields in the Murmansk Region and the Urals, as well as regular supplies of Russian LNG to Brazil, and participation in the construction of gas storage facilities. In 2024, an agreement was reached on the supply of Russian fuel to Brazil, and the supply of Russian natural gas to the country was also increased.

Rosatom is thus significantly strengthening the countries' partnership in the field of green energy. Rosatom's involvement in the Brazilian energy sector contributes to Brazil's transformation into a significant technology hub in Latin America. Since Brazil has great potential in the production of biofuels and renewable energy sources, cooperation with Russia will allow the countries to exchange experience and technologies for the further effective development of this sector.

Development of the green initiatives of Russia and Brazil within the framework of the BRICS summits

With Western sanctions imposed on Russia and President Lula Da Silva coming to power in Brazil, BRICS countries will be able to find new points of contact in order to improve this sector qualitatively. Following the Beijing BRICS Summit, the BRICS Energy Research Platform was created to effectively manage energy risks ^{[20, pp. 35-38]}. The countries rely on the development of joint innovative projects in the field of green energy. Within the framework of the BRICS, an Energy Association was created, which includes the Reserve Fuel Bank and the BRICS Energy Policy Institute. The Association was designed to control energy prices; conduct energy market research to create an independent analytical base; and monitor financial transactions in national currencies within the framework of the Reserve Fuel Bank ^[21].

Taking into account the changing international situation and the expansion of the association, the BRICS countries will have to look for new formats for the implementation of ESG initiatives. The last time green energy issues were raised was at the international session "Global Challenges of the Green Agenda: a Test of Strength and a catalyst for BRICS Cooperation", held during the VIII Eastern Economic Forum on the initiative of Beera. Russia, as the chairman of the next summit, which will be held in Kazan in 2024, took the initiative at the session to create a Contact Group on Sustainable Development and Climate within the framework of the forum. The countries pay special attention to cooperation in the development of green innovations, the harmonization of taxonomies, as well as the development of the carbon regulation market. In addition, with the expansion of the BRICS, the issue of investments in this area will become paramount for the Russian Federation and Brazil, among others ^[22]. Lula da Silva, President of Brazil, noted the role of the countries of the global South in combating climate change and mining, which are in demand in modern industry. Vladimir Putin, in turn, agreed with this statement, and at the summit in Kazan put on the agenda issues of decarbonization of the economy, reducing anthropogenic impact on nature and adaptation to climate change.

The Kazan Declaration of the BRICS countries indeed reflects provisions concerning the expansion of cooperation between the BRICS countries (as major producers and consumers of energy resources and services) to achieve an equitable and equitable energy transition. Once again, the countries emphasize that access to energy and energy resources to ensure energy transition must be achieved through the UNFCCC and the Paris Agreement. Transparent international trade in energy resources should also be established between the countries, as well as an appropriate investment environment. Therefore, countries need to create sustainable supply chains and establish logistics in this area. Due to the expanding geography of the BRICS countries, it is very difficult to implement this plan. However, regarding Russia, it can be said here that the country promoted its own interests in the declaration, speaking about condemning terrorist attacks on infrastructure facilities (hinting, among other things, at Nord Stream), as well as investigating such incidents ^[23].

It should be noted that the Kazan Declaration also refers to the application of the principle of technological neutrality, that is, the use of all available fuels, energy sources and technologies to reduce greenhouse gas emissions, which include, but are not limited to, fossil fuels using emission reduction and capture technologies, biofuels, natural gas and liquefied petroleum gas, hydrogen and its derivatives, including ammonia, as well as nuclear and renewable energy, etc.

Returning to the UNFCCC, it should be noted that countries are opposed to unilateral protectionist measures that disrupt global production and logistics chains. These measures, according to the BRICS countries, do not comply with international law and are being taken under the pretext of concern about environmental issues.

Before the summit, a meeting of the BRICS energy ministers was held in Moscow, where the countries welcomed the ongoing cooperation within the framework of the BRICS Energy Research Platform, including the publication of the BRICS Report on Equitable Energy Transition, in which the countries noted the need to develop a unified position on this issue. However, as Sergey Tsivilev, Minister of Energy of the Russian Federation, rightly noted, each country should rely on its own national interests when choosing a path to energy transition. And as previously noted in the article, Brazil is making the most significant progress in this area, and therefore, at the next summit in Brazil, the country will be able to help other members of the association develop a common agenda in the field of green initiatives and sustainable development.

The Kazan summit also adopted a Memorandum of BRICS Partnership on the Carbon Market to create a specialized platform for sharing knowledge, experience and conducting case studies on the development of carbon markets and discussing cooperation on the carbon market. The BRICS Contact group on Climate Change and Sustainable development was previously established in Nizhny Novgorod (June 28, 2024), and later a Framework Program on Climate Change and Sustainable Development was developed as part of the High-level Dialogue on Climate Change in Moscow (August 30, 2024). Based on these decisions, the countries expect to create the BRICS Climate Research Platform (BRICS PKI) to enhance scientific and technical cooperation in this area, and therefore, within the framework of the association, the countries also emphasize the need to promote climate change adaptation projects involving practical solutions and encouraging the use of renewable energy sources.

Speaking about the upcoming summit in Brazil, it is worth noting the role of close cooperation between Russia and Brazil in the context of energy transition. Strengthening ties in the field of green energy will allow Brasilia to work out a common course to expand the association's development potential in this area, taking into account the increased number of its participants over the past two years. Brazil, as noted earlier, attracts a large number of investments in the country's agricultural sector: the National Bank for Economic and Social Development of Brazil (BNDES) increased investments in the country's agricultural sector by 26% in 2024 compared to 2023 ^[24]. Russia and Brazil, thus, using the experience of joint cooperation, will be able to bring the green agenda within the framework of the BRICS to a qualitatively new level, involving the newly joined states in it. Taking into account the future agenda of the next summit: "Strengthening cooperation between the countries of the Global South for more inclusive and sustainable governance" ^[25], Brazil is likely to include in it the topics of promoting climate initiatives and energy transition, and the topics voiced during the Russian presidency will receive even more intensive development.

Conclusion

Thus, Brazil and the Russian Federation have a huge potential for cooperation in this area. Brazil has a huge biodiversity and a wealth of natural ecosystems. The country has one of the best conditions in the world for the production of green hydrogen, and produces 7% of the world's renewable energy, plans to achieve carbon neutrality by 2050. Since Brazil has a huge potential for agricultural resources, it actively promotes the digitalization of the agricultural sector, which reaches almost 50%, which makes the industry more environmentally friendly. The Russian Federation has great technical potential. Russia has huge reserves of natural resources, the protection of which is also focused on the countries in its ESG agenda. Russia is actively developing hydro and nuclear energy, investing resources in ensuring the development of artificial intelligence and hydrogen energy technologies, which helps it remain one of the largest energy exporters in the world. In 2024, Russia, as chairman of the BRICS summit, actively participated in the development of ESG initiatives, having planned the creation of a Unified Register of BRICS climate Projects. The service will contribute to the creation of market-wide carbon regulation mechanisms, taking into account the increasing trade turnover between the members of the association, in which Brazil will certainly participate.

Thus, Brazil and Russia have indeed achieved significant results in the field of cooperation in the field of green energy. Brazil is one of the most energy-efficient countries in the world, it has highly competitive conditions for the production of green hydrogen, which creates favorable conditions for its transformation into an export hub for this product. Russia plays an important role in the global energy sector and is one of the largest energy producers and exporters in the world. The two countries are strengthening cooperation in the field of green innovation, creating joint projects in the field of nuclear and hydrogen energy and contributing to the sustainable development of the two countries. The countries are actively strengthening cooperation within the framework of the BRICS, because one of the relevant topics on the agenda of the association is precisely cooperation in the field of green energy and the economy. The partnership between the two countries not only contributes to achieving carbon neutrality, but also creates favorable conditions for further economic growth. The countries promote the development of green innovations, the harmonization of taxonomies, and promote joint projects with Rosatom. Decarbonization of the economy, reduction of anthropogenic impact on nature and adaptation to climate change also contribute to the partnership of the countries. Russia and Brazil will undoubtedly continue to deepen their cooperation in the field of green energy, contributing to solving global environmental problems.