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1.6. (...) Since January 2021, inflation exceeded the upper limit of the tolerance band of the inflation target. According to the Central Bank of Brazil (BCB), the main drivers for this move were: (...) (ii) water scarcity electricity tariff flag (...)

1.12. (...) According to the authorities, from 2017 to 2022, two directly owned companies (Codesa and Eletrobras) were privatized, two were liquidated (Codomar and Casemg), and one (Ceitec) is under liquidation. Moreover, in the same period, divestments (i.e. selling subsidiary assets, investments, or divisions of a company) largely targeted the energy sector and included 98 directly and indirectly owned state-owned enterprises (SOEs), inter alia involving: (i) BR Distribuidora, the largest distributor and trader of petroleum derivatives and biofuels (ethanol) in Brazil and Latin America (...)

Table 1.5. Foreign direct investment (equity) outflows, 2017-21 (USD million): (...)
By % of total GDP:
Industry: (...) Coke, oil derivatives and biofuels: (2017) 46.0, (2018) .., (2019) 0.1, (2020) .., (2021) 0.0
(...)

1.26. (...) In 2021, the main foreign direct investment (FDI) recipients were (...) industry (e.g. (...) biofuels) (Table 1.6). (...)

Table 1.6. Foreign direct investment (equity) inflows, 2017-21:
By % of total GDP:
Industry: (...) Coke, oil derivatives and biofuels: (2017) 0.6, (2018) 0.7, (2019) 0.7, (2020) 0.5, (2021) 4.1
(...)

2.14. Overall, according to the Inter-American Development Bank (IDB), Brazil's economic strategy for the period 2019-22 has been structured into four key areas: (i) improve the business climate and narrow gaps in infrastructure for enhanced competitiveness; (ii) promote national and international integration to boost productivity; (iii) build a more effective public sector that promotes fiscal sustainability; and (iv) reduce social inequality and lack of opportunities by enhancing public policy efficiency. The strategy was to address challenges related to gender and diversity, environmental sustainability and climate change, and innovation and digital transformation.

2.17. (...) Action to strengthen trade relations with traditional partners and open new markets for Brazilian products through the negotiation and conclusion of trade agreements covering tariffs but also aspects such as (...) sustainable development (...)

Table 2.1. Brazil's regional trade agreements (RTAs) in force: main features, as of 25 January 2022: (...)
RTAs entered into force before 2017: (...)
Argentina – Brazil – Uruguay (AAP.A14TM 6): (...)
Coverage (selected features): Environment-related goods
(...)

2.40. (...) Negotiations on free trade agreements between the Southern Common Market (MERCOSUR) and the European Union, a priority for Brazil, and with the European Free Trade Association (EFTA) countries were in principle concluded in 2019. Both agreements are more comprehensive than the agreements signed in the past as in addition to tariff reductions they cover issues such as (...) sustainable development (...) Upon its entry into force, the agreement with the European Union is to provide full tariff elimination on 92% of imports from MERCOSUR and 95% of its tariff lines, along with partial concessions under tariff rate quotas (TRQs), fixed margins of preferences, and entry prices, thus raising its coverage to 99% in terms of EU tariff lines. [66]
[66] On 28 June 2019, the European Union and MERCOSUR reached a political agreement for an ambitious, balanced, and comprehensive trade agreement covering issues such as (...) sustainable development (...)

2.52. (...) Classification on the risk of an activity may involve the evaluation of its nature, inputs, and products, as well as sanitary, environmental, and technological conditions of the activity. (...)