The Challenges and Pathways of the Global Energy Matrix

The global energy matrix is undergoing an unprecedented transition—a complex process that goes far beyond simply replacing fossil fuels with clean alternatives. In practice, we are witnessing a layered transformation, where multiple energy sources coexist, complement each other, and evolve to ensure security, accessibility, and sustainability in a world that will demand even more energy in the upcoming decades.

In this context, Brazil stands out as a strategic player, combining abundant natural resources, a renewable vocation, and a history of pioneering public policies. Currently, about 88.2% of Brazil’s electricity matrix is made up of renewable sources such as hydroelectric, solar, wind, biomass, and biogas—placing the country ahead of powerhouses like Germany, Canada, and the United States. This advantage is further reinforced by the upcoming COP30, to be held in Belém (PA) in November this year, highlighting Brazil’s leadership in global climate and energy discussions.

Beyond its natural advantages, Brazil demonstrates that regulatory and technological innovation can go hand in hand to enable decarbonization. Initiatives such as Pró-Álcool, RenovaBio, the Legal Framework for the Fuel of the Future, the Brazilian Emissions Trading System , and advances in carbon capture and storage (CCS) solutions showcase the country’s ability to create frameworks that encourage long-term investment. Emerging technologies like green hydrogen, sustainable aviation fuel (SAF), and integrated biorefineries reinforce this forward-looking vision, linking energy transition, industrial competitiveness, and the creation of new business opportunities.

At the same time, the world demands pragmatism. Oil and natural gas remain relevant, especially because of the population growth, projected increases in global energy consumption through 2050, and geopolitical risks that directly impact supply stability—such as ongoing conflicts in the Middle East and other producing regions. In this scenario, new efficiency and mitigation technologies—like Hi-SEP (CO? separation at the wellhead), direct air capture (DAC), and the use of artificial intelligence to optimize production—are essential to balance energy demand with climate goals and the increasingly strict expectations of ESG-aligned investors.

I believe Brazil has a unique window of opportunity to combine its renewable strengths with the ability to attract international capital, develop new value chains, and accelerate low-carbon solutions. Mitigating risks, anticipating trends, and structuring appropriate guarantees are essential parts of this journey, driving a realistic, sustainable, and business-integrated energy transition.

Horiens understands that this convergence of innovation, energy expansion, and climate transition requires a strategic approach to risk and insurance management. Every energy project—whether a solar plant, wind farm, CCS operation, or bioenergy complex—presents specific challenges in engineering, financing, and compliance.

Customized risk transfer and retention programs ensure not only financial viability but also the resilience of ventures that must align economic return, reputation, and positive impact.

Vanessa Falco is Director of Risk and Insurance at Horiens