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Brazil’s Climate Paradox: Can It Save the Amazon While Drilling for Oil?

November 4, 2025
in World
Reading Time: 7 min

When Luiz Inácio Lula da Silva took office again as Brazil’s President, he was determined to restore his nation’s reputation as a global leader in fighting climate change.

His ambitious plan included drastically cutting Brazil’s greenhouse gas emissions, securing international funding for climate initiatives, and halting the widespread destruction of the Amazon rainforest—mirroring the successful efforts of his earlier presidencies.

The upcoming U.N. climate summit, COP30, held for the first time ever within the Amazon, was supposed to be a moment of triumph. It offered Lula, a leftist leader, a prime opportunity to solidify Brazil’s re-emergence as a key player in global climate discussions.

However, three years into his current term, Lula approaches these crucial climate negotiations with a far more complex and contradictory environmental record.

While his administration has achieved significant success in curbing Amazonian deforestation—a vital step for planetary health due to the rainforest’s role in absorbing greenhouse gases—Brazil has simultaneously drawn criticism. Environmental groups are particularly alarmed by attempts to relax environmental protections and, weeks before the summit, the approval of oil drilling near the Amazon River’s delta.

“This decision sends a terrible message to the world,” stated Marcio Astrini, executive secretary of the Climate Observatory, a prominent environmental coalition. “The timing couldn’t be worse.”

President Lula has defended the oil exploration, asserting that the revenues generated would fund Brazil’s transition to a greener energy future.

This contentious issue, however, risks damaging Brazil’s international reputation and diminishing its influence at COP30. This is especially problematic as global leaders are set to discuss phasing out fossil fuels to combat rising temperatures.

President Luiz Inácio Lula da Silva of Brazil sitting at his desk in front of windows.
President Luiz Inácio Lula da Silva of Brazil aims to cut carbon emissions and deforestation, yet simultaneously supports oil drilling in the Amazon region.

Brazil’s seemingly conflicting stance highlights a universal dilemma for leaders like Lula: how do nations reconcile ambitious environmental goals with the practical economic and political pressures at home?

For years, Brazil’s offshore oil drilling plans near the Amazon River’s mouth remained stalled, mired in environmental assessments and fierce political opposition. Environmental organizations had consistently called for the project’s abandonment, citing the potential for devastating oil spills in an ecologically critical region.

Last month, however, Brazil’s environmental agency finally approved a license for the state-owned oil company to explore for oil. These deposits are thought to be nearly 10,000 feet beneath the seabed, precisely where the Amazon River empties into the Atlantic.

Climate activists swiftly condemned Brazil, accusing it of hypocrisy, a charge the government quickly denied.

Environmental Minister Marina Silva clarified that the approval was solely for exploration, not immediate drilling, which would be years away if it ever proceeds. She maintained that exploring for oil was “perfectly compatible” with Brazil’s long-term strategy to phase out fossil fuels, a transition expected to span decades.

“It’s a contradiction, no doubt,” Ms. Silva acknowledged in an interview, but quickly added that Brazil isn’t unique in its continued reliance on fossil fuels while simultaneously advocating for cleaner energy. “This contradiction is present globally.”

President Lula himself has been a strong proponent of Amazonian oil drilling. He argues that global demand for oil will persist for many years and frames the project as a critical tool for job creation and economic development in Brazil’s struggling northern regions, consistent with his long-standing fight against poverty and inequality.

Two people walk on a cobblestone plaza past a large glass building, the Hangar Convention Center.
The Hangar Convention Center in Belém is where the global climate summit discussions will take place.

“As long as the world needs oil, Brazil will not squander the opportunity to utilize this wealth to improve the lives of its people,” Lula declared in a recent defense of the drilling plans.

The Amazon basin, with two-thirds of its vast expanse located in Brazil, is absolutely essential for mitigating climate change. This immense rainforest acts as a colossal carbon sink, absorbing and storing enormous amounts of carbon dioxide—the main heat-trapping gas—within its trees, leaves, and soil.

Experts agree that global average temperatures must not exceed 2 degrees Celsius (3.6 degrees Fahrenheit) above pre-industrial levels. Surpassing this limit would dramatically escalate the risks of extreme heatwaves, intense storms, devastating wildfires, and prolonged droughts. Last year, already the warmest on record, saw temperatures rise by 1.5 degrees Celsius (2.7 degrees Fahrenheit) beyond that baseline.

Over recent decades, immense portions of the Amazon have been cleared and burned for cattle ranching and soybean cultivation. Scientists caution that the rainforest is rapidly approaching a critical “tipping point,” beyond which it could irreversibly change into a dry savanna, releasing vast stores of carbon emissions accumulated over decades.

Rainforest destruction accelerated significantly under the previous far-right president, Jair Bolsonaro, who actively promoted commercial development in the Amazon. During his tenure, deforestation hit a 15-year peak, and alarming reports showed some parts of the rainforest began releasing more carbon than they absorbed.

Signs in Portuguese on a concrete wall protesting oil exploration, with an office tower in the background.
Protest signs against oil exploration in the Amazon are displayed on a wall outside the Petrobras headquarters in Rio de Janeiro, Brazil’s state-run oil company.

With environmental protection central to his platform, Lula narrowly defeated Bolsonaro and returned to the presidency in 2023. He promised to undo his predecessor’s damaging policies and the environmental destruction they caused, thereby rebuilding Brazil’s standing as a global ecological steward.

“I am here to tell you all that Brazil is back,” Lula proclaimed at the 2022 U.N. climate summit in Egypt, mere weeks after his election, to the cheers and chants of an enthusiastic audience.

Lula’s confidence was well-founded; his previous two terms (2003-2010) showcased a strong environmental record. His policies, which included strengthening law enforcement and incentivizing forest conservation in local communities, led to an impressive 80% reduction in deforestation, transforming Brazil into a celebrated environmental success.

Indeed, in many respects, Lula has begun to deliver on his pledge to replicate that earlier success.

Upon assuming office, he rapidly moved to place significant portions of the Amazon under federal protection—a crucial measure that environmentalists consider highly effective, previously halted under Bolsonaro. Lula also reinforced government agencies responsible for combating environmental crimes, which had been severely weakened by his predecessor’s policies.

Data from Brazil’s space agency shows Amazon deforestation decreased by 50% between 2022 and 2025, reaching its lowest point in 11 years. Additionally, government reports indicate that the country’s greenhouse gas emissions dropped by 12% in 2024 compared to the year prior.

Despite these successes, Lula has encountered strong opposition from Brazil’s Congress. Lawmakers have moved to weaken Indigenous land protections and relax environmental review standards for new development projects. Although Lula has vetoed some of these bills, experts anticipate that right-wing politicians, many allied with Bolsonaro, will overturn these vetoes in the coming months.

Environmentalists are particularly concerned that Brazil’s initial venture into oil exploration near the Amazon could trigger a widespread surge in fossil fuel drilling across the region, leading to severe and far-reaching environmental damage.

Alarmingly, the government has already auctioned exploration rights for over two dozen additional offshore lots in the same area. Furthermore, it is contemplating selling drilling rights for more than 100 other prospective sites.

“This is a dangerous path,” warned Mr. Astrini from the Climate Observatory. “Brazil will undoubtedly be forced to justify its actions.”

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