“The capable being lives close to the need.”
Pythagoras

The accelerated process of global changes is directly related to the events that occurred with reglobalization that began in the midst of negative reactions from societies towards to the deepening of differences between the rich and poor, even with the significant improvement caused by globalization in the field of international trade.

The pronounced drop in trade liberalizing actions and the effective increase in protectionist measures are the darker side of the changes that have occurred. As a result, the Cold War between the United States and China, the Russian invasion of Ukraine and now, the attack by the Hamas group on Israel, among other wars in the world, have created a geopolitical environment, negatively charged, on the eve of the year 2024, when there will be elections in the United States.

The profound impacts observed in post-pandemic countries, such as inflation and the logistical crisis, are seen in the reduction in economic growth in key nations such as the United States, European Union countries and China, making effective actions in the logic of decarbonization difficult, The opposite of what was established in the Paris Agreement is occurring, with greater use of fossil fuels and slow adoption of the use of renewable energy.

Another aspect in the global process of change is the pressure to improve the way we produce and consume, always aiming to mitigate carbon emissions and, at the same time, seek food and energy security for the planet. The programs launched by the European Union (Green Deal) and the United States (Inflation Reduction Act), without a multilateral vision, and, therefore, without the essential governance of the World Trade Organization, are clearly unilateral actions that bring even greater complexity to trade relations, disturbing the best global balance obtained after the Second World War.

In short, there is a serious rupture in global governance, with attempts to impose internal policies by rich Western countries and their unilateralism, causing difficulties for international trade. This imbalance brings problems to a country like Brazil, which has Western roots, but has its large foreign market in the East. For now, there is no sense of unilateral action from countries like China, but pressure from leading Western countries could pressure the Chinese to also adopt unilateral measures, which is worrying.

A consequence of these facts is the pressure from large importers and foreign companies with these new measures and their impacts on the governance process of Brazilian companies, such as certifications and traceability, among others. Agribusiness has shown, in Brazil, different developments on the carbon issue. The sugar cane, corn and vegetable oil chain is ahead of other production chains, given the biofuels law that led to decarbonization credits and a modern market in B3, RenovaBio. The other chains, whether livestock or grains, have sought to adjust to the new reality and fundamental metrics relating to carbon emissions.

Somehow, pressure from financial agents in Brazil has shown a positive response from companies in the sugar-energy sector in terms of governance, with professionalization, assembled councils and opening of capital. These are measures charged by the agents mentioned for renewal or new credit resources, which is positive.

The evolution of governance in agribusiness will bring greater consistency to investments, better analysis of threats and opportunities and greater openness in companies' networking. According to ItaúBBA (ItaúBBA, Agroschool, Agro Governance Trail, August 2022), the business Farming, like any other, needs to be managed with a good level of governance, strategy, operational planning and professional management.

The same is said in terms of governance applied to the Executive (federal, state, municipal), and in public-private preparation for international negotiations. There is confusion in the actions of Brazil's powers on this issue. While the Brazilian Legislature works on the new laws (Carbon Market, among others), the Executive tries to act and the Judiciary overrides both powers mentioned, generating confrontations.

Regardless of this, there is an effort to adapt the agricultural production sector to become viable in this new world, which, in turn, is concerned with Brazil's leading role in the field of food and energy security and the fight for energy transition!

In general, a new protectionist order should bring to Brazil a sense of urgency in public policies, which allow Brazilian producers to compete, in actions to defend the World Trade Organization, multilateralism and in the internal actions of the federal government, which convey confidence and, with it, fundamental investments by the productive sector.

What we see today in Brazil is a worrying and growing degree of dispute between the Powers (Legislative, Executive, Judiciary) bringing insecurity and volatility in the market. There is also internal support for the Landless Rural Workers Movement or external support for totalitarian governments, as well as the division of agribusiness into several Ministries, with invasions of agricultural properties and a permanent degree of possible measures in the agro-industrial productive sector, generating distrust.

It is difficult to understand why the Brazilian political process does not seek to increasingly deepen serene public-private relations. They are and will be essential to the development of public policies and private investments, notably external ones. The required governance means, on the one hand, reasonable additional costs, which presupposes an impact on prices and inflation. This is true in the European Green Deal and for consumers in the European Union, as it will be in Brazil.

Also, the preparation of the productive sector, through professional development, in the governance process of private companies, family or not, will be essential. As highlighted, many of these companies in the sugarcane sector are prepared or in preparation with Deliberative or Advisory Councils, professionals in executive management and with commitments and forms of action geared towards the current global process.

Entities that defend and act globally (International Energy Agency, Food and Agriculture Organization of the United Nations, Organization for Economic Co-operation and Development) struggle to seek coordination, which is difficult in a tense and confrontational global environment. Internally, in Brazil, the fight for fiscal balance, lower interest rates and investments depends on the actions of the executive and legislative branches and public-private relations. Tense poorly implemented relations between powers and potential lost opportunities, in the rush to spend and in the absence of an administrative reform, do not alleviate the Brazil Cost.

In the field of energy transition, the world is looking for sustainable aviation fuel and Brazil could be the Saudi Arabia of this fuel; seeks Green Hydrogen for road transport; seeks to legislate in the interests of the richest; seeks to question subjective indirect deforestation that creates difficulties for countries like Brazil and its clear and potential protagonism in agricultural matters.

This requires a sense of urgency, professionalism and public-private integration. You can't get anywhere without integration and efficiency, and you can't go anywhere without planning or populism. Threats grow and come from the outside world. It is known that in a democracy differences must be respected. But, always, governing is necessary!