Unlocking Brazil’s Potential: A New Era of Sustainable Tech Innovation

Brazil is on the brink of a transformative era, ready to emerge as a global leader in sustainable technology. My recent visit to Brazil for the IT Forum in Praia do Forte, where I was a keynote speaker, demonstrated the country's business commitment to driving the next wave of green, tech-driven innovation. As the largest technology event in Latin America, the IT Forum has gathered CIOs and CEOs for 26 years. With abundant natural resources and advancements in technology, Brazil is uniquely positioned not only to address its environmental and social challenges, but to turn them into opportunities for global leadership. As part of this movement, my keynote explored how to fuse sustainability and technology, while transforming Brazil into a global example of ecological and economic success.

The challenge of aligning opportunity with action

Brazil is a land of contrasts, where vast opportunities coexist with daunting challenges. As the fifth largest country in the world, it faces deeply interconnected environmental and social challenges. The degradation of the Amazon, rising temperatures, and increasingly erratic weather patterns exert immense pressure on Brazil’s ecosystems and economy. In 2023 alone, extreme weather events caused total losses of approximately $21 billion, with droughts and floods contributing equally. Agriculture was the hardest hit, accounting for 51% of the losses, followed by livestock, sanitation, and infrastructure.

On the social side, Brazil faces significant gaps, particularly in education and employment. An alarming 23% of young people aged 15 to 29 are neither studying nor working; a situation that leaves them vulnerable to social and economic exclusion. The challenges are compounded by healthcare inequities and limited access to essential infrastructure in remote regions, which add to the complexity of fostering long-term development.

Despite these formidable obstacles, Brazil holds unmatched potential for sustainable economic growth. This potential is fueled by the country's vast natural resources, its increasing technological innovation, and a collaborative culture that encourages partnerships across sectors. Moreover, the policy momentum around green growth initiatives offers fertile ground for transformation. Events like the IT Forum illustrate how Brazil is integrating technological solutions with sustainability.

However, the main challenge lies in turning Brazil’s promises into concrete actions. The country must consistently transform its vast potential into reality: ensure that sustainability goals and business innovations go beyond vision to become fully realized outcomes. By prioritizing execution, Brazil can shift from being a nation of great promise to one leading the world in sustainable innovation and development. 

Brazil’s path to sustainability and growth

Brazil’s natural assets are unparalleled. With 60% of its territory covered by the Amazon and the highest biodiversity in the world, the country is ideally positioned to harness renewable energy, bioenergy, and sustainable agriculture. For instance, the state of Mato Grosso has drastically reduced deforestation since 2004 while increasing agricultural productivity. The state leads Brazil’s soybean production and has demonstrated how economic growth can coexist with environmental stewardship.

Brazil's green economy is poised to reach a market value exceeding $125 billion by 2040, driven by its rich natural resources and a shift toward renewable energy. In 2023, Brazil generated nearly 93% of its electricity from clean sources, led by hydroelectric power, and saw significant growth in solar and wind energy. However, emerging sectors like green hydrogen, which require an estimated $2 billion in investment, still need development. Brazil's biofuel industry is also notable, with flexible-fuel vehicles utilizing ethanol from sugarcane, a sector set to expand by 30% by 2040. Additionally, Brazil is positioned to become a major producer of sustainable aviation fuel, attracting significant investment, and could tap into a $15 billion biomethane market by 2040. The country’s potential in carbon markets, bolstered by reforestation efforts, further underscores its opportunity to lead globally in sustainability and create lasting economic progress.

A green Silicon Valley in the making

Brazil’s technology sector is developing at an accelerated rate, as evidenced by its ranking among the top 10 countries globally for tech investment. With significant capital allocation and growing interest from global investors, the nation is further solidifying its role as a leader in nature-based solutions. Brazil’s startup culture is also rapidly evolving, thereby offering fertile ground for innovation in green technology. In 2023, São Paulo alone attracted over $2.5 billion in venture capital funding, much of it directed towards clean tech and sustainable startups. Cities like Belo Horizonte and Florianópolis are becoming hubs for tech-driven solutions that address the world’s most pressing environmental challenges. These urban centers are not just embracing digital transformation but are leading the charge in developing scalable solutions that could set new standards for sustainability worldwide. Brazil has all the ingredients to become a green Silicon Valley, where innovation, capital, and talent converge to create a sustainable future.

A variety of business cases illustrate how Brazil is leveraging technology not only to drive economic growth, but also to create meaningful social and environmental impact, further solidifying its role as a leader in the global green economy. A standout example is São Paulo-based FinTech Solfácil that facilitates residential solar energy adoption through an online marketplace. Solfácil connects consumers with investors and installers, making solar energy accessible to individuals, farmers, and small businesses by financing approximately $450 million in solar loans. The company collaborates with over 4,250 solar installers and serves more than 66,000 customers. In 2023, it expanded into northern Brazil, partnering with Brazil’s National Bank for Economic and Social Development to power 7,000 homes in the Amazon by 2025. Its innovative model, including an IoT device to monitor solar systems, solidifies Solfácil’s role in Brazil's green energy ecosystem.

Also in the solar arena is Casa dos Ventos, one of Brazil’s largest renewable energy developers. It operates nearly 3 GW of wind capacity, primarily in the northeast, helping to prevent more than 4 million tons of CO2 emissions annually. The company plans to expand into solar energy with an additional 1.2 GW by 2025. Casa dos Ventos recently secured $500 million in green financing to support its growth and expects 20% annual revenue increases as clean energy demand rises in Brazil, positioning it as a key player in the country’s renewable energy transition. 

The shift from doing less harm to doing more good

The shift to a sustainable economy in Brazil is not just about reducing harm, but about doing more good by creating a positive, large-scale impact. This approach also represents where the biggest tech-driven sustainable opportunities lie, allowing Brazil to unlock new markets through innovation, renewable resources, and environmentally conscious practices. By focusing on creating value rather than merely mitigating damage, Brazil can lead the way in reshaping the global economy for a sustainable future.

Microsoft’s AI for Earth initiative in Brazil uses AI and data analytics to combat deforestation, promote sustainable land use, and enhance carbon capture projects. Through partnerships with local entities, Microsoft leverages satellite imagery to monitor the Amazon and optimize sustainable agriculture. Globally, Microsoft has committed over $50 million to AI for Earth, with a significant portion directed toward Brazil. The initiative supports job creation in local communities and aligns with Microsoft’s goal to be carbon negative by 2030, with a potential market impact exceeding $10 billion as Brazil scales its green economy.

Another exemplary case is Agrosmart, a Brazilian agri-tech company that uses data analytics, IoT, and AI to optimize water usage and increase agricultural productivity. By providing real-time data on weather patterns, soil moisture, and crop conditions, Agrosmart has helped farmers reduce water consumption by up to 60% while increasing crop yields by 20%. The company’s platform serves over 100,000 farmers across Brazil and Latin America, contributing to a 10% reduction in farming costs and improving overall agricultural sustainability. Financially, Agrosmart has raised over $30 million in investment, with expectations of doubling its revenue by 2025 as demand for smart farming solutions grows.

Unlocking scale through collaboration

Despite its promise, Brazil faces significant hurdles in scaling sustainable solutions. Education must be overhauled to equip the next generation with skills needed for a tech-driven economy. The Itaqui project serves as an example of what’s possible when technology and education work together. Originally a recycling initiative, Itaqui is on a mission to grow into a major initiative supported by multinational corporations, integrating management education and providing vital support to young people. Similar efforts can bridge the educational gap and foster the talent required for Brazil’s green economy.

Collaboration is essential to achieving this transformation. Earlier this year, Brazil announced an expanded partnership with the Glasgow Financial Alliance for Net Zero (GFANZ) to boost funding for clean energy and nature restoration, including reforesting the Amazon. The collaboration, led by Brazilian Development Bank (BNDES), aims to mobilize public and private financing. The initiative aligns with President Lula's goal to position Brazil as a leader in global climate efforts, particularly as the country prepares to host the G20 and COP30 summits. The program will focus on expanding Brazil's renewable energy sector and restoring 60,000 square km of the Amazon.

IBM’s AgriTech and Climate Resilience Program takes a global view and aims to transform Brazilian agriculture by utilizing AI, data analytics, and blockchain technology to enhance productivity and climate resilience. Through partnerships with Embrapa and local cooperatives, IBM provides real-time insights for crop management, water use, and soil health, aiming to increase agricultural yields by up to 20%. IBM has invested approximately $30 million in this initiative, expecting a return of up to $200 million in the next decade as it strengthens its presence in Brazil’s agricultural sector. The program also supports over 100,000 smallholder farmers, contributing to a projected $15 billion biomethane market by 2040 as sustainable practices take root.

In this regard, an additional key example is Brazil's participation in the LEAF Coalition (Lowering Emissions by Accelerating Forest Finance), a global initiative involving governments and companies such as Amazon, Nestlé, and Unilever, aimed at combating deforestation. Launched in 2021, LEAF has secured over $1 billion to support tropical forest conservation in Brazil and other countries. This initiative not only fosters international cooperation but also provides Brazil with crucial funding to scale reforestation efforts and ensure sustainable land use, strengthening its role in global sustainability ecosystems.

Paving the path forward

Brazil stands at a critical juncture, where the potential for a sustainable future must be realized through concrete action at scale. The way forward demands a strong focus on execution, collaboration, and education—ensuring that the nation’s ambitious promises become reality. Education reform, strategic investments, and technological innovation will be the supporting pillars driving this transformation.

As the world increasingly looks to Brazil to lead on sustainability, the country has a unique opportunity to rise to the occasion and become a true green powerhouse. Hosting the G20 summit in November 2024 and COP30 in 2025 will provide pivotal platforms for Brazil to demonstrate its leadership in sustainability and tech-driven climate solutions. These events offer critical milestones for showcasing Brazil’s ability to turn its environmental and technological vision into lasting global impact. Now is the time for Brazil to cement its role as a leader in the green revolution by paving a pathway that turns today’s challenges into lasting opportunities for future generations.

Marga Hoek Founder-CEO Business for Good, Global Thought Leader Sustainable Business, Capital and Technology

Business for Good’s research and strategic insights are led by Theresa McCarty, based in New York