Brazil Takes Strategic Approach To OPEC+ In ‘Observer’ Role
Brazilian President Luiz Inacio Lula da Silva recently clarified the country’s stance on OPEC+ membership on Sunday, emphasizing a strategic observer role rather than full membership. Lula said, “Brazil should join OPEC+, it could be an observer. Brazil will never be a full member of OPEC, because we don’t want to be. What we want is to influence.”
Lula’s comments came at the U.N. COP28 climate summit in Dubai. Brazil has faced ongoing criticism from climate activists because it continues with expanded offshore oil drilling plans. The friction comes despite Brazil’s efforts to maintain a climate control leadership role by actively reducing the deforestation of the Amazon River basin.
Lula told reporters that his country could steer climate policy in an observer role in OPEC+ by lobbying oil-producing nations to invest in renewable energy sources. “I think that in participating this way, we will convince people that a part of the money made from oil should be invested for us to nullify oil, creating alternatives,” he said.
The petroleum company Petrobras, which the Brazilian government operates, is expected to develop alternative energy investments in its portfolio. At the same time, it continues with oil exploration in the natural resource-rich nation. Lula said, “Petrobras will continue to do what it needs to do to help Brazil grow, but will expand beyond just oil to all energy.”
Observers believe Brazil is attempting to achieve a strategic balance between climate activism and oil production by joining OPEC+ in no more than an “observer” nation’s limited role in the energy alliance.
However, the observer status in OPEC+ is more than merely symbolic.
In Brazil’s last election, Lula secured a narrow victory over populist incumbent Jair Bolsonaro, marking a pivotal shift in Brazil’s political landscape. Navigating this delicate balance, Lula strategically maintains his leftist credentials, particularly with climate activists, by championing environmental causes and emphasizing Brazil’s role in global climate discussions.
Simultaneously, he’s pragmatically fostering Brazilian oil production, which is crucial for sustaining economic growth and securing domestic political influence. This dual approach demonstrates Lula’s intention to align Brazil’s economic interests with environmental activism to appeal to multiple constituents.
Whether Lula can leverage the OPEC+ observer position of influence to maintain his leftist bona fide status with voters in Brazil remains to be seen.
