A Conversation with Fernando Haddad, Minister of Finance of Brazil | Global Conference 2025

Brazil's Global Economic Stance

• Brazil asserts a favorable position for investment due to adherence to sustainable globalization principles and consolidated partnerships with Southeast Asia, Europe, the US, and Mercosur.
• A trade agreement with the European Union has been finalized, and relations with the US are maintained across administrations (Biden and Trump) based on economic complementarities.
• South America is highlighted as a geopolitical territory offering legal, political, and energy security, leveraging its capacity to produce clean energy.
• Brazil's energy matrix is 90% sustainable, relying on hydro, biofuels, and hybrid engines, providing a competitive advantage for green industries.

Domestic Economic Strategy and Growth Targets

• The government aims for a sustainable annual economic growth rate of 3% throughout the remaining four years of President Lula's term, described as a foundational floor for a fairer economy.
• Economic potential has been recalibrated upward from 1.5–2.5% (per IMF recognition) to a minimum of 3% by the end of the mandate through specific structural reforms.
• Key reform drivers include tax reform approved via constitutional amendment, the establishment of a carbon market, and improvements to the credit and capital markets.
• The agenda includes a "reindustrialization" plan chaired by the Vice President, targeting hundreds of billions in investments across cellulose, automotive, clean energy, and logistics sectors.

National Data Center Policy

• The government is launching a National Data Center Policy to anticipate the positive effects of the already-approved tax reform, allowing for the depreciation of investments and exports in the sector.
• A regulatory framework is currently being drafted in the National Congress to address copyright and competition concerns before year-end.
• The policy explicitly targets "digital and green" data centers, ensuring they utilize clean energy and offer robust cyber and legal security.

International Leadership and Climate Governance (G20, BRICS, COP30)

• Brazil's 2023 G20 presidency successfully achieved a unanimous statement for the first time in years, focusing on multilateralism, hunger alleviation, taxation of the super-rich, and debt alignment for poor countries.
• Preparations for COP30 (November 10–21, Belém) involve advanced financial arrangements with the World Bank, IDB, and IMF to guarantee payments for environmental services preserving tropical forests.
• Brazil is sketching a model for an international carbon credit market to support sustainable global development.
• The "Tropical Forests Forever Facility" (TFF) and the broader Ecological Transformation Plan (PTE) encompass over 100 actions, ranging from bio-fertilizers and SAF to pasture recovery and deforestation fighting.
• BRICS is positioned as a critical force for multilateralism, representing two-thirds of the world's population and nearly 80% of global GDP, driving calls for institutional reforms of global economic bodies.

Investment Opportunities and Infrastructure

• Private investment in infrastructure is accelerating, with significant contracts already signed for highways, ports, airports, and railways under improved concession and public-private partnership legislation.
• A specific company recently announced $34 billion in investments in Brazil through 2030, illustrating the scale of potential opportunities in traditional and emerging sectors.
• The government is actively seeking to attract 5,000 global investors attending the Milken Institute to leverage these opportunities, with a specific focus on sustainable impact and capital bridging.