Perspectives
6 November 2025
Brazil may be famous for its Carnival, but another event on the country’s calendar this year is the United Nations Climate Change Conference - COP30 - being held in November 2025.
Against a backdrop of an economic rebound in recent years,1 shifting geopolitical dynamics, and its long-standing positioning as an autonomous actor in a multipolar world,2 Brazil’s role as a leading exporter of agricultural and mineral resources and its growing significance in energy production ensures it’s increasingly a focal point for international business and investment. The country’s ongoing advances in international trade, sustainable energy, and infrastructure are also positioning it as a global leader in decarbonisation and economic resilience.
Together, these pillars are shaping Brazil’s business landscape, with Macquarie’s expertise in these areas supporting the nation’s growing global influence over the past quarter of a century.
South America’s largest and most populous country, Brazil has long blazed a trail for the continent, advancing its infrastructure and forging strategic partnerships to strengthen its role in international commerce.
"Brazil is a globally significant commodity exporter and has been for a significant amount of time – it has longevity on its side,” says Thierry Wizman, Macquarie’s Global Foreign Exchange and Rates Strategist. “The current shifting geopolitical landscape, together with investment in key infrastructure is presenting Brazil with renewed opportunity to expand production and export of its mined and non-mined commodities.”
Brazil’s status as a gifted commodity producer, supplying the world with agriculture, metals, and increasingly, energy, has positioned the nation as a key engine for global resource needs. Its well-diversified trade portfolio, built on natural relationships with regions like Europe and Asia, has enabled Brazil to avoid dependency on any single market. Notably, Brazil’s ability to meet the import demands of deficit regions such as China further underscores its adaptability and strength in international trade.
Source: Observatory of Economic Complexity (OEC)
In August 2025, Brazil exported mostly to China ($US9.49b), United States ($US2.76b), Argentina ($US1.64b), Netherlands ($US988m), and Singapore ($US829m).3
Source: Observatory of Economic Complexity (OEC)
In August 2025, the year-on-year growth of exports in Brazil was primarily driven by increased exports to China ($US2.25b, 31.1%), Argentina ($US473m, 40.4%), and United Kingdom ($US250m, 111%).3
A push towards closer digital integration is also informing infrastructure demands, with Brazil one of the first nations to implement key digital initiatives being driven by the Mercosur trade bloc.
Macquarie Capital is helping strengthen Brazil’s digital infrastructure with a $R287 million investment in Brasil TecPar, one of the country’s largest and fastest-growing internet service providers (ISPs). A partnership which enables Brasil TecPar to expand its fiber optic network, acquire additional ISPs, and drive technological innovation to bridge the digital divide and deliver high-quality broadband internet.
Macquarie Capital invested $R287 million in Brasil TecPar, one of the largest internet service providers in Brazil.
With the vision of Brazil’s government and the expertise of the vibrant agriculture private sector, Brazil’s abundant agricultural resources have helped the country become a leader in biofuel production, servicing global and domestic demand for ethanol and biodiesel as a motor fuel,4 while reducing fossil fuel emissions and dependency on imports.5
As Walter Pye, Head of Brazil explains, “whilst Brazil’s ethanol industry was originally ignited by sugar producers, a more recent development is the rapidly increasing supply coming from corn-based ethanol producers.” He adds, “many of these same agriculture producers are also major suppliers of power to the grid where low-carbon energy represents roughly 88 per cent of Brazil’s total electricity generation.”
In May 2025, Brazil and China signed an ethanol cooperation agreement aimed at expanding Brazil’s ethanol exports to China.6 This agreement comes as China prepares to implement its E10 gasoline policy, which mandates a 10 per cent blend of eco-friendly fuel in gasoline. Not only does this open a vast market for Brazilian ethanol in China, but it also drives new momentum into global energy transition efforts.
Beyond China, rising demand from countries across Asia is leading to an increase in biofuel adoption as part of a broader mix of solutions for global decarbonization. This surge in demand highlights the vital role biofuels play in reducing transport emissions and supporting the energy transition. It’s worth noting that Brazil is also investing in clean diesel production by leveraging its leadership position in vegetable oil production to supply an increasing demand for biodiesel.
“Our teams at Macquarie are helping domestic clients realise their ambitious growth plans and address a variety of needs, enabling them to expand and meet rising global demand,” says Pye. “With our expertise in risk management, access to funding, and physical execution, we deliver reliable solutions at scale.”
Brazil’s vast territory and diverse geography have made it a powerhouse for renewable energy, positioning it as a leading emerging market for wind and solar investment. Between 2014 and 2023, the country attracted more investment in those two markets than any other – $US108 billion, according to Bloomberg NEF.7
Recognising this opportunity, Macquarie is supporting the growth of the nation’s renewable infrastructure.
“Brazil is unique in its immense natural resources, which offer vital sources of renewable energy, biofuels and renewable natural gas,” explains Fernando Lohmann, Head of Macquarie Asset Management in Brazil.
“We see tremendous opportunity in harnessing the potential of these resources from our existing portfolio companies as well as to drive greater investment in related sectors across the country.”
Macquarie recently partnered with Hydro Rein, a leading provider of renewable energy to the industrial sector, and local developer Casa dos Ventos to develop and now operate Ventos de São Zacarias (VSZ), a 456 MW wind project in northeast Brazil. Hydro Rein collaborated with Macquarie to deliver one of their most significant renewable energy projects to date, featuring 80 turbines across 10 wind farms.
In 2024, Hydro Rein contributed 2.3 gigawatts (GW) of new renewable capacity to Brazil's national grid, more than 20 per cent of the country's total renewable additions.8 Looking ahead, Brazil is projected to add 2.7 GW to its wind energy capacity in 2025.9
Macquarie Asset Management has developed a 456 MW wind project in the northeast of Brazil with partner Norsk Hydro to provide low-carbon power to aluminium production.
Additionally, Macquarie has invested in Solví Participações’ waste-to-energy process, driven by the Biometano Caieiras plant, which has begun producing approximately 70,000 m³/day of biomethane, a renewable fuel essential for the energy transition. Solví extracts biogas generated from waste and using a purification system, transforms it into biomethane, supporting decarbonisation and reducing reliance on fossil fuels. Solví accounts for more than 20 per cent of the total volume of urban solid waste disposed of correctly in Brazil, highlighting its key role in the country’s sanitation chain.10
Solví Participações S.A. (Solví) waste disposal operations help to serve 10+ million people across Brazil, Peru and Argentina.
While the eyes of the world will be focused on Brazil when COP30 comes to town, the story of success on the international stage is already being written. As the region pushes ahead with renewable energy, infrastructure and international trade, Macquarie is committed to supporting the country’s next chapter.
“We offer more than just capital; our extensive local knowledge and experience help turn ideas into reality,” says Pye. “Our financial strength and deep understanding of the local market enable us to deliver lasting impact for our clients, partners and communities.”
