Brazil faces consequences for delay in implementing industrial policy, says CNI vice president
“From 2013 to 2023, Brazil’s GDP showed an average growth of just 0.5% per year. In the same period, agriculture grew 3.3% per year; services grew 0.8% per year and industry shrank 1.8% per year,” he assesses.
Leonardo de Castro also said that the new industrial policy, Nova Indústria Brasil (NIB), announced in January 2024, can bring economic growth and well-being to the population, but depends on the union of forces between government, industry and academia, in addition to the prioritization of green policies.
“NIB is filling this gap with a project that is based on the current demands of Brazilian society and mobilizes industry to seek solutions to these challenges. Therefore, now is the time to join forces in the government, the business sector and academia to implement an industrial policy that effectively promotes economic growth and the well-being of the population.”
On the occasion, the Vice President of the Republic and Minister of Development, Industry, Commerce and Services, Geraldo Alckmin, welcomed the dialogue between the CNI and civil society and said that there is no way for Brazil to grow without valuing its own industry.
“Organized civil society makes a difference. So it is important to have organized civil society, dialogue and debate. Those who listen more make fewer mistakes. There is no social or economic development, income growth or better salaries if there is no industry. Industry adds value and is at the forefront of technological advancement.”
Green Policies
Currently, 83.7% of the country’s energy comes from renewable sources, while the global average is 29%. For CNI vice-president Leonardo de Castro, the new industrial policy should consider the production of green energy as a competitive advantage.
“We must work to use renewable sources as an important competitive advantage. Through biotechnology and the decarbonization of production processes, it will be possible to add more value to the production of sectors such as mineral fuels, chemicals, fertilizers, cosmetics, pharmaceuticals, plastic, cellulose, paper, ceramics, glass, steel, iron and aluminum, among several other sectors that have energy as one of their intensive inputs. In addition to the growing supply of wind, solar and other renewable energy sources, Brazil has ambitious projects for the production of low-carbon hydrogen.”
Also present at the Seminar “Industrial Policies in Brazil and the World”, the executive secretary of the Ministry of Finance, Dário Durigan, said that the government recognizes the importance of industry for the country’s economic growth and has invested in the decarbonization of the economy.
“We will do everything that can be done, as quickly as possible within our limits. And the industry comes first. We have just approved the green hydrogen law, with a series of incentives for this chain. We created the Mover; we implemented accelerated depreciation. And we are certain that investing in the industry is the right thing to do in the country.”
Sanctioned in June of this year, the Green Mobility and Innovation Program (Mover) encourages investments in new technological routes and increases the decarbonization requirements of the Brazilian automotive fleet. Meanwhile, the Accelerated Depreciation Law (which should be regulated soon, according to Vice President Geraldo Alckmin) grants tax incentives for the modernization of industrial machinery. The hydrogen legal framework was sanctioned on the 2nd and brings a series of initiatives to develop this industry in Brazil.
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By Brasil 61
