The study “Incentives and Subsidies to Fossil Fuels in Brazil in 2019: Identify, Evaluate, Reform”, published by Inesc (Institute of Socioeconomic Studies), calculates the amounts of incentives and subsidies to production and consumption of fossil fuels in Brazil through a methodology developed by Inesc.
In Brazil, in 2019, such incentives and subsidies reached the amount of US$ 25,08 billion (R$ 99.39 billion). This represented 1.36% of the country’s Gross Domestic Product (GDP) in 2019. In the same year, for example, this amount was equivalent to three years of the Bolsa Família Program (US$ 7,6 billions – R$ 33.1 billion in the 2019
budget) and to almost 29 times the total budget of the Ministry of Environment (US$ 861,1 million – R$ 3.44 billion in the 2019 budget).
This is the third edition of this study, and an increase in the amount of incentives provided to the sector compared to the previous year has been observed for the second time.