Energy Transition Index: How the Brazil Renewable Energy Market Compares Globally

The global race to net-zero is intensifying, but one nation is already running a different race. The Brazil renewable energy market stands as a global anomaly, boasting a green grid that most developed nations can only dream of achieving by 2050. While other countries struggle to phase out coal, Brazil ranks impressively high on the Energy Transition Index. But what do the numbers actually say? According to the IMARC Group, the market size is set to reach USD 17.4 billion in 2025, proving that sustainability and profitability can go hand in hand.

This article explores how Brazil compares to the world's superpowers. We will analyze the latest data, forecast trends, and explain why this South American giant is winning the clean energy battle.

How Large is the Brazil Renewable Energy Market Today?

The market is a financial powerhouse, currently valued at USD 17.4 billion for 2025. Furthermore, analysts predict a robust upward trajectory over the next decade.

Specifically, the IMARC Group forecasts the sector will grow to USD 31.0 billion by 2034. This represents a steady Compound Annual Growth Rate (CAGR) of 6.60% between 2026 and 2034. Several factors fuel this expansion. First, Brazil possesses enviable natural resources, including high solar irradiance and consistent wind patterns. Second, government initiatives continue to attract foreign investment. Consequently, the market is not just stable; it is accelerating, with solar and wind segments leading the charge toward a cleaner future.

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Where Does Brazil Rank on the Global Energy Transition Index?

Brazil is a top-tier performer, ranking 12th globally on the World Economic Forum's Energy Transition Index (ETI) with a score of 65.7.

This ranking places Brazil in an elite category, significantly ahead of the world's largest economies. For comparison, the United Kingdom ranks 13th, China ranks 17th, and the United States ranks 19th. Additionally, Brazil holds the #1 position in Latin America, serving as a regional beacon for decarbonization. This high score reflects Brazil's long-standing commitment to renewable infrastructure. While other nations are currently building their foundation, Brazil is optimizing an already mature green network.

How Does Brazil’s Energy Mix Compare to the Global Average?

Brazil is a statistical outlier; its electricity matrix is roughly 89% renewable, whereas the global average sits near 30%.

Historically, Brazil has relied heavily on hydroelectric power. However, recent years have seen a massive diversification into wind, solar, and biomass. In contrast, the global energy mix still leans heavily on fossil fuels like coal and natural gas. When we look at the Total Energy Matrix (which includes transport fuels), renewables still account for nearly 50% of Brazil's consumption. This is almost four times higher than the global average of roughly 14%. Thus, Brazil effectively operates in a different league regarding carbon intensity.

Brazil vs. The World: Who Is Greener?

Brazil wins on current infrastructure and implementation, while major economies are scrambling to catch up through massive new investments.

To help you visualize this disparity, we have compiled a comparison of the Brazilian renewable energy market against global standards.

What Are the Key Drivers Behind This Market Growth?

Abundant natural resources combined with strategic government incentives, such as Proinfa, drive this exceptional growth.

Brazil does not need to import its energy potential; it grows it and harvests it. The country utilizes its massive agricultural sector to fuel a booming biomass energy trend. Simultaneously, the Northeast region acts as a "Saudi Arabia of Wind," offering some of the best capacity factors in the world. Moreover, the photovoltaic expansion is exploding as costs drop. Investors are also eyeing Green Hydrogen potential, seeing Brazil as a future export hub for clean fuel. Therefore, the drivers are structural, making the market resilient to external shocks.

What's Next?

Brazil is not just participating in the energy transition; it is leading it. With a market heading toward USD 31.0 billion and a ranking that beats the world's superpowers, the Brazilian renewable energy market is a blueprint for success. As the world strives to meet the Energy Transition Index goals, Brazil proves that a green economy is possible, profitable, and scalable.