From Hannover to biofuels: Brazil’s leading role in the energy transition

Business

Brazil presented at the Hannover Fair a biofuel solution that allows the reduction of greenhouse gas emissions and provides a path for energy transition. The solution comes at the right time, when the country awaits the entry into force of the agreement between Mercosur and the European Union, which takes place on May 1st.

After more than 25 years of negotiations, the agreement consolidates one of the largest free trade zones in the world, bringing together a GDP of US$22.4 trillion and a market of around 718 million people. The choice for cooperation, as President Lula emphasized during the opening of the Hannover Fair, sends a clear message: the path to sustainable development passes through integration.

More trade and more investment mean more jobs, income and opportunities on both sides of the Atlantic. By expanding production integration, production chains are strengthened and, consequently, small businesses, which represent around 95% of Brazilian companies, gain. There are also numerous complementarities between the two regions. Brazil, for example, can play a decisive role in contributing to the reduction of energy costs and the decarbonization of European industry, especially through its cleaner energy matrix.

This new moment gained concrete visibility at the Hannover Fair, where Brazil occupies a prominent position as a partner country. The country presents itself as a protagonist of the green economy and energy transition, demonstrating to the world its ability to compete on scale global.

At Sebrae, we understand that this protagonism can only be sustained with the full inclusion of micro and small companies. They are the ones that give capillarity to growth, that innovate with agility and that connect economic development to the reality of the territories. At COP30, we have already highlighted the strength of these entrepreneurs in the green economy. Now, in Hannover, it was possible to advance even further, supporting 190 startups and small businesses that present solutions in industry 4.0, artificial intelligence, sustainability and digital transformation.

These companies represent a Brazil that not only follows global transformations, but helps to lead them. They develop technologies for energy efficiency, automation, industrial digitalization and intelligent management, essential areas for a world that seeks productivity combined with environmental responsibility. These are solutions that directly address global challenges and reinforce the country’s image as a strategic partner.

None of this happens by chance. This is a coordinated effort between institutions such as Sebrae and ApexBrasil, which have been working to prepare our micro and small companies to compete internationally. Initiatives such as the Export Qualification Program (PEIEX) expand access to markets and transform potential into concrete results.

The numbers confirm this trajectory. In 2025, Brazil will consolidate itself as the fourth largest destination for foreign direct investment in the world, in addition to significantly expanding its international presence with the opening of new markets. These indicators reflect an essential asset: trust.

And it is precisely this trust that we need to transform into opportunities for everyone. The agreement between Mercosur and the European Union, combined with the strategic presence in global forums such as the Hannover Fair, opens an unprecedented window for Brazilian micro and small companies to advance beyond its borders. Our role, at Sebrae, is to ensure that they are prepared for this leap, connecting, qualifying and boosting entrepreneurs.

Brazil is an active part of building a new economy — greener, more innovative and more inclusive. And it is small businesses that are increasingly taking the lead in this transformation.

Source: www.agenciasebrae.com.br
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