We are going through times of a lot of climate and energy apprehension around the world. Not only has the Covid pandemic made people think more about their own sustainability, but the recent conflict between Russia and Ukraine has opened up the enormous challenges of reliable energy sources that many countries face. The irony of the war, in which consumers were forced to cut down on electricity consumption while their electricity bills soared into the stratosphere, meant that a rosy picture was simply torn apart.

To complicate the scenario, recent interruptions in the global supply chains of parts and components have raised questions about the supply of raw materials for the batteries that will be used in these cars, making it clear that the decreasing costs of batteries observed in recent years are in check.

Additionally, oil companies are suffering enormous pressure from their shareholders, causing a significant decrease in investments in new oil and gas fields. It is clear, therefore, that we are facing a great dilemma: how can we reduce dependence on fossil fuels, while at the same time ensuring that consumers and countries suffer less from the risk of shortages and price explosions?

The answer to this question inevitably involves ethanol. Not only is ethanol finding an increasing space as an oxygenator for gasoline (the most recent example of India's rising blending targets is emblematic), but the prospects for the ethanol-powered fuel cell engine are also encouraging. an electric motor with a renewable, clean and abundant source.

And most importantly: with an already established distribution network and with the structure of storage tanks that oil products companies have already built in the past. It is worth remembering that electric energy has numerous restrictions on its storage, causing the risk of shortages and even an economic collapse, in the case of an acute restriction of supply. Brazil knows well how the risk of electricity blackouts can turn into a huge economic and social nightmare.

The challenge of finding clean and reliable substitutes for oil and its derivatives is so huge and complex that no clean, renewable source should be discarded. How, then, to make this transition safely? One of the answers lies in the growth of carbon credit markets around the world. Public policies that direct investments and consumption towards clean energy sources must, mandatorily, count on programs of this type. Here, in Brazil, we can be proud that we have already done our homework, RenovaBio.

A number of experts, government technicians, car manufacturers, distributors and renewable fuel producers have come together to create what is perhaps one of the best programs of its kind in the world today. The generation and sale of carbon credits follow a market logic, with predictable rules and no cost to the public coffers.

Even a program as robust as this one, however, is not immune to flaws and improvements. In this sense, the Ministry of Mines and Energy of Brazil has sought to improve the correct functioning of this market in recent months. It is normal for agents in the fuel chain, producers, government and consumers to find common ground to be debated and improved.

What is expected, in this case, is that any relevant change in relation to RenovaBio's rules will be discussed extensively with all players and with society, in order not to mischaracterize the program, to the point that producers and buyers do not believe in its correct operation. Furthermore, it is absolutely essential that everyone understands the intrinsic nature of its operation: that the prices of carbon credits will fluctuate. In any free market, it is the prices of goods that send signals to producers and consumers about the need to increase or reduce the supply of any product.

We need all agents involved in the program to understand that price volatility is not only expected, but also necessary to correct product shortages and excesses in the future. Interventions with the aim of avoiding short-term volatility may seem effective at first, but they often do not serve to adjust future supply, by taking away the confidence of market agents. In practice, less volatility in the present is exchanged for an even greater distortion in the future, as the problem is not solved in a transparent and agile way.

Brazil is very well positioned to ride the wave of global sustainability. We have the right climate, abundant land, willingness to undertake; we are a peaceful and democratic country. The green wave can take our country to a new level of development, generating growth, income and jobs. It is enough that the market gears and the correct public policies work in harmony, for the benefit of society.