Economy

Brazil’s Mines and Energy Ministry warns of risk of power generation cuts

Civil servants working in Brazil's environmental agencies are on strike, putting the country's power generation capacity at risk

A strike by government workers has halted environmental licensing processes. Mines and Energy Minister Alexandre Silveira says this poses a risk to Brazil's energy supply. Photo: Pedro Ladeira/Folhapress
A strike by government workers has halted environmental licensing processes. Mines and Energy Minister Alexandre Silveira says this poses a risk to Brazil’s energy supply. Photo: Pedro Ladeira/Folhapress

During the Jair Bolsonaro era (2019-2022), Brazil’s environmental agencies were effectively shut down by budget cuts and the then-government’s stance in favor of loggers, miners, and rural producers who violated conservation laws. Upon taking office a year ago, President Luiz Inácio Lula da Silva promised to restore these agencies and combat deforestation.

But one year into Lula’s third non-consecutive term, the results are a mixed bag. Deforestation in the Amazon has declined, but forest destruction in other biomes — particularly the Cerrado savanna — has increased. In the second year of his administration, Lula faces a strike by civil servants at Ibama, Brazil’s environmental protection agency, and the Chico Mendes Institute for Biodiversity Conservation (ICMBio).

They are demanding better pay and working conditions, as well as more hiring to fill vacancies that have gone unfilled for years. More than an administrative headache, the strike poses a real threat to the continuity of the country’s energy generation, according to the Mines and Energy Ministry.

The Brazilian Report has obtained a letter sent by Mines and Energy Minister Alexandre Silveira to Environment Minister Marina Silva on January 30 (see below), in which he relayed warnings from energy sector associations about the risks of a shutdown.

Brazil's Mines and Energy Ministry warns of risk of power generation cuts

Together, Ibama, ICMBio, and the Environment Ministry have a total of 4,800 civil servants. An estimated 90 percent of them have stopped working until their demands for higher wages and better career plans are...

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