Climate: João Paulo Capubianco from the Secretariat of Institutional Relations of the Presidency of the Republic, José Guimarães, and the President of the Board of Directors of the National Electric System Operator, ANS, and Vice-President of Neoenergia, Solange Ribeiro. To begin this ceremony, the Minister of Mines and Energy, Alexandre Silveira, will address the audience. Dear President Luís Inácio Lula da Silva, our Vice-President, dear Geraldo Alckmin, our Government Coordinator, Minister Miranda Bequor. It's a joy, Minister, to work under your leadership. Dear friend, this exemplary public servant for Brazil, Estter from EC, Luciana Santos, dear friend from our beloved state of Pernambuco, Darilo Durigan, another great public servant who has provided relevant service to the country. Our dear Tomé, Minister of Ports and Airports, it's a great joy to have him as part of this team, and also another great public servant, our dear Márcio Elias. It's a pleasure to work alongside you, Marcel Elias. João Paulo Capobianco, so many advances together, right, Capobianco? For the sake of reconciliation and convergence, led by President Lula, towards economic development, but with sustainability, and especially with social results for this country. Our dear friend José Guimarães Capobianco. On behalf of Solange, I would like to greet everyone in the oil, gas, biofuels, and mining sectors, some of whom are present here. president and the electricity sector. Mr. President, today is a very special day for this humble public servant, because it reminds me of when I was 27 years old, when I took my civil service exam to begin my first service as a state employee in Minas Gerais. And I was leaving Belo Horizonte for the small town of Antônio Dias in the Vale do Aço region, with my whole family against it because nobody understood. I was in business, doing well, surviving well since I was 16, when I was emancipated to set up my first little furniture shop, and at 27 something called me to public service. Today I understand that was it, it was the spirit of service, to render service. Why did the whole family turn against it? First of all , there was no one in my family who worked in public security, and secondly, because I left Belo Horizonte, my family from Jectutionha, but I was born in Belo Horizonte, my family is from Serro, right next to Diamantina. But to work, I already had a stable life, with Xandin, 5 years old, and Malu, 9 months old, in the back of my car, a silver Vectra CD. But to live there—and Leonardo, who's here, knew me well because he was an employee of Cenibra and my partner in delivering projects for Denite in Vale do Aço—I went to live in Dona Reni's boarding house, bathroom outside the bedroom, Xandinha, Malu, with Paula, my partner of 35 years. And when I asked where the police station was, the police station was in the parking garage of a supermarket, vice-president, in the parking garage of a supermarket. And I had a corporal from the Military Police, a clerk from ADOC, that was already the spirit of public service. And then, due to my boldness, I had the opportunity, three years later, to run for federal deputy for the Vale do Aço region, opposing Léo, Léo's regional representative. And thanks to that dispute and the generosity of the Vice President of the Republic, I had my first great opportunity in public life, which was to serve the country in your government, invited by our late Vice President Zé Alencar as the general director of the largest autonomous agency in the country. My first contact with the Senate of the Republic, because I was questioned. President Zé Jorge, my rapporteur was Valdir Halpe. I'm allowing myself to tell this story here today, Mr. President, to thank you. Thank you because it involves two feelings that are character traits: gratitude and loyalty. And fate once again brought us together , brought me together again with the greatest leader of this country, that leader who works 12, 13, 14 hours a day, with whom I had the joy of traveling the world. There were 29 international trips with the president. And not as a Minister of State, but as a Brazilian citizen. There is no one who is not proud of the international respect and the ardent defense of peace, social justice, multilateralism, and permanent dialogue to build public policies that can truly make a difference in Brazil and the world. So, Mr. President, I learned this from the Vice President, because we're almost at the end of this journey. I learned two things that are fundamental for me as a public servant. One of them was taught to me by Zé Alencar. Zé Alencar used to say that the most important thing in life was being able to come back. So, in all the missions I undertake as Secretary of State for Health, as a public security official, Secretary of State for Metropolitan Management, Director General of DNIT (National Department of Transport Infrastructure), I always know that I will return home. So, I take that into consideration very carefully. The most important thing in life is being able to come back. And secondly, what matters to us public servants is the legacy. And today, you and our government are delivering to Brazil four important legacies: one for the Brazilian electricity sector and one for the decarbonization sector, for the energy transition and sustainability, which is the sustainable fuel, which regulates sustainable aviation fuel, and regulates carbon capture and utilization . and the decree opening the market, which pertains to the electricity sector. The energy sector today receives four new regulatory frameworks in the form of decrees to benefit people and promote the regulation of vital areas of the energy transition. The first of these is the opening of the energy market. Go ahead, Mr. President. Today we have 90 million consumer units in Brazil, Minister Míra. Only 90,000 consumer units, which is not industry, not large industry. Because industry and commerce are still outside of Mercado Libre. Only 90,000 can choose from whom to buy energy. You allowed it after 20 years because the last reform of the Brazilian electricity sector took place when our president, Dilma, was the minister. She implemented the reform that created EPE and allowed and mandated that distributors purchase energy on the regulated market. And now, 20 years later, you sent it to the National Congress and managed to approve another fundamental reform for Brazil. First, because subsidies on consumers' energy bills had been growing excessively, many of them completely unnecessary. And I asked the sector, ever since I became Minister of Mines and Energy, to tone down the lobbying a bit—nothing against them personally. Everyone defends their own interests there, but I wasn't going to give up the national interest as a public servant and the interest of the country. And that's what you've instructed us all along , that the country's interest should prevail, regardless of the agents involved. And in the reform of the electricity sector, you placed a ceiling on the CDE (Energy Development Fund). So, from now on, these subsidies can no longer be added to the consumer's bill starting next year. Any new subsidy they might create, if they happen to create it. And so I want to acknowledge the role of Congress, the role of the larger Brazilian democracy, but all the new subsidies they create will be redistributed within the CDE ceiling and can no longer increase the energy bill for Brazilians. Few leaders would be able to approve this matter at this time. The other issue, which you are now regulating, is opening up the possibility for 100% of Brazilians to choose from whom to buy energy. And this will create an opportunity for competition between the generators. Here is our representative from CCE, a competition between generators that will literally allow for a decrease in the price of energy for the end consumer. By December 27th, all businesses and industries will be able to choose who to buy energy from, and will be able to buy cheaper energy. And until November, 28 Brazilian consumers, and this ties in with Solâ, we'll talk about this, this ties in with another extremely important project which was the renewal of 14 distribution contracts, which allowed 150 billion in advertising in the Brazilian distribution sector. One of the items we included there, Vice President Alcão, is the integration of the network, which will greatly facilitate CCE's ability to handle and process this issue of the complete and total opening of the market. This freedom is the science of this market; it puts the consumer first . The migration process will be simplified and will include portability rules, all with high transparency and a focus on continuous service improvement. The other president is sustainable aviation fuel. And then , I see the president of Cellen here, you had the opportunity to go to Montes Claros to the seed factory. Celen recently signed the financing agreement for its biorefinery project in Bahia. It's a commitment to acquire, it seems they've already acquired 4,000 hectares, but the commitment between acquisition and between family farming and partnerships to plant 180,000 hectares in the Brazilian hinterland, in northern Minas Gerais, in the Jectonha, in the Mucuri and in the hinterland of Bahia, will allow the development of the region with Macaúba. The seeds that were seen being sown there may have potential. The macaúba palm has been considered one of the most cost-effective plants for the production of SAF (agroforestry system), green diesel, and bio-based powder, and the Minister of Ports understands the importance of this for the world and for Brazil. In my early trips, Mr. President, whenever I met with Boy and Airbus, they spoke of Brazil's expectation of playing a leading role in the fuel industry. This is the issue of biotechnology, and we had to send that law that you sent to the National Congress, which was approved, and today you are regulating it, which allowed Brazil to fulfill its international commitments, including those of CORSIA. And from 2027 onwards, we're going to have a mandatory blend of sustainable aviation fuel in our global decarbonization matrix. Therefore, a fundamental decree and a fundamental public policy are needed to generate results. Quickly, Mr. President, just to give you the numbers. This decree, with objective figures, including those calculated together with the Treasury, shows an increase in GDP of 13 billion with SAF production projects , 9,000 jobs in the construction of the projects until 2029, investments until 2023 of 39 billion, and production of SF and HVO R of 4.4 billion more. So, employment, income, vocation, decarbonization, energy transition. The country of clean and renewable electricity is decarbonizing the sector that emits the most CO2, which is the mobility sector. Brazil is moving forward and setting an example for the world with this decree issued today. The other is carbon capture, the capture, use and storage of carbon. It was very important that this decree, which will generate 16 billion in investment per year, also stimulate the creation of 209,000 jobs. This decree allows for regulation and legal certainty for investment, so that we can, including in the ethanol and oil sectors, become carbon negative, capture carbon, place it where it is possible to place it safely in rocks, and make oil production and the production of other biofuels with negative carbon capture and storage. And lastly, low-emission hydrogen. Brazil, with its energy diversity, and this decree today establishes and implements the legal framework for low-carbon hydrogen. We are not just regulating a fuel; we are giving a birth certificate to a new market that did not yet exist in Brazil. This measure is innovative, marking the first time in the country's history that it has explored natural hydrogen. It has a set procedure and provides legal security for investments. We detail the Brazilian hydrogen certification system based on the intensity of Capobianco emissions throughout its entire life cycle; the world will not buy promises, it will buy proof. And Brazil arrives with the proof in hand. In conclusion, Mr. President, I would like to say that these legal milestones naturally arose from the public policies of our government. I want to take this opportunity, on behalf of my great colleague and friend Brito, to thank the National Congress for approving the fuel of the future and all these other milestones. We understand the importance of ongoing dialogue with Congress and the legislative bodies. These are sectors that the world considered impossible to decarbonize, and yet they are precisely the ones that sustain employment. Minister Alkm, Minister Márcio, Brazilian industrialist. It's not a choice between industry and climate, it's about saving industry for the sake of the climate. For decades, Brazil was a country of potential. Today we turn the page. We've moved from the potential to a decarbonized industrial chain, Minister Márcio. We moved from vocation to rule, from promise to contract. We are presenting ourselves internationally, not as if asking permission to enter, but as if we were arriving with the best energy matrix on the planet and now with a legal framework that matches it. Thank you again, Mr. President, thank you for allowing me to serve this country. [applause] [applause] At this moment, we hear the president of the Board of Directors of the National Electric System Operator, ONS, and vice-president of Neoenergia, Solange Ribeiro. President Lula and Vice-President Geraldo Alckmin, Minister Jamir Beloró, through whom I greet all the ministers present here, other authorities, ladies and gentlemen. Mr. President, it is a great joy to be here today participating in this moment that is so important for the Brazilian electricity sector , isn't it? And I want to start by making an acknowledgment. I believe that under Minister Alexandre's leadership, Brazil has been advancing on a structuring agenda of major public policies, as the minister mentioned earlier, an agenda that considers Brazil and Brazilians within the context of the electricity sector. The "Light for the People" program and the resumption of " Light for All," which was a long-term project that we have been expanding, extended the benefit to millions of Brazilians, and advanced tariff fairness, strengthening a cause that has been so dear to you, which is social protection. The government also tackled, as the minister mentioned, structural issues throughout this period in order to provide security to the sector and create conditions for new investments. The decision to extend, to bring forward the extension of the concessions, which was done in agreement with you, for another 30 years, brought predictability and opened up a very important space for new investments in the sector. There have been many other advances in modernization, such as measures to curb the growth of subsidies, as the minister just mentioned, balancing costs and risks, and ensuring equality among consumers. And the investments shown there illustrate the scale of this agenda. It's no coincidence that in the electricity sector, when you look at the year 2025, of the 280 billion in infrastructure investments, half of that was in the electricity sector, right? So I think this is a natural reflection of these policies, and I'm proud to say that Neoenergia has been a very active participant. We've been investing around 10 billion per year there. We are the group that has invested the most in infrastructure in the last 4 years and we will invest 50 billion by 2030. So it is on this foundation of trust and investment that we are taking a super important step today, as the minister stated, the regulation of the energy market. We're talking about some of the most significant changes here. Mr. President, I have 43 years of experience in the electricity sector. This has been discussed for at least 20 years, as the minister mentioned. Well, freedom is a change that truly transforms the relationship with the consumer and places the consumer at the center of the market . Freedom of choice is precisely the essence of this transformation. We still have many challenges ahead in this process, which still needs to be built with the correct allocation of risks and costs in the treatment of current contracts. It's another front, as the minister also mentioned, this low-carbon agenda represents another very important step for Brazil, right? The vice president has been working hard on this, seeking to transfer this natural leadership into something very concrete, which is jobs and industry. Minister Alexandre, I couldn't fail to acknowledge your ability and leadership throughout this entire process, and most importantly, as I've told you several times , your courage. I believe courage is your trademark in tackling such complex issues and transforming them into concrete decisions. The most recent one, I remember here the commitment agreement for [unclear], a matter that had been dragging on for so long in court, and you tackled it, and we're already quite far along. President Lula, when I look at this set of achievements, I see an integrated policy. I think we're talking about social inclusion and tariff fairness. We're talking about freedom of choice and we're talking about security for investments, right? I believe that Brazil has already built a matrix for the future with clean and competitive energy. That's what we talk about most in Brazil, right? And our challenge is to transform this competitive matrix into development for our Brazil and for our Brazilians. Rest assured that you can count on energy investors in this journey and to continue investing in the country with all that is in place. Thank you all very much. [applause] [applause] At this moment, the President of the Republic, Luís Inácio Lula da Silva, is signing a decree that regulates guidelines and conditions for carrying out activities related to the capture, transport via pipelines, and geological storage of carbon dioxide. Under the new rules, carrying out these activities will depend on authorization from the National Agency of Petroleum, Natural Gas and Biofuels (ANP), which will be responsible for regulating technical conditions, procedures and guarantees. Now, the President of the Republic, Luís Inácio Lula da Silva, is signing a decree that regulates the National Sustainable Aviation Fuel Program. [applause] At this moment, the President of the Republic, Luís Inácio Lula da Silva, is signing a decree that regulates the legal framework for low- carbon hydrogen and the national policy for low-carbon hydrogen. At this moment, the President of the Republic, Luís Inácio Lula da Silva, is signing a decree that regulates the opening of the electricity market to low-voltage consumers. The floor is now open to the Vice President of the Republic, Geraldo Alckmin, President Lula, and the ministers present: Amiriam Belquior, Daril Durigan, Alexandre Silveira, Tomé Franca, Márcio Elias Rosa, Estter and Luciana Santos, João Paulo Capobianco, José Guimarães, Solange Ribeiro, President of the Operational Council of ONS, and Vice President of Neoenergia. The parliamentarians present here are Deputies Antônio Brito and Leonardo Monteiro. Friends, Mr. President, this is a very brief statement, but I must emphasize that this is a very important day. Today, large consumers can access the Free Market, as can large industries, and obtain energy that is 23% cheaper, but consumers with lower voltage cannot. So this decree that you signed, the result of Alexandre Silveira's important work , allows commerce and small industry to enter the Free Market next year, followed by residential consumers. Then the price of energy will go down for everyone. Nothing beats competition, right? You open up the market. Alexandre Silveira is a more sophisticated man; he's from the city, he's a city dweller. I'm from the countryside, and we country folk wake up early. There was a bakery on my street in São Paulo; it opened at 6:00 AM. Then a second bakery opened, almost across the street. What happened? The old bakery started opening at 5 a.m. If there were no dispute, no competition, then energy would become cheaper. It's the decree that allows, you know , the competition, you know, like telephony. You can choose who will supply it to you. The second is the environmental issue. Brazil is an example to the world of commitment to combating climate change. Sir, you've already mentioned that the ethanol level was 27.5%, then it went to 30%, and now it's at 32%. So, whoever puts gasoline in it, 32% anhydrous ethanol. It helps the environment, it helps public health. The third leading cause of morbidity and mortality worldwide is respiratory disease, specifically lung disease. Biodiesel aid. Brazil used to have 10% bio-in-diesel in diesel, but you've increased that to 12%, 13%, 14%, 15% today, and now SAF (synthetic acid fat). So, decarbonizing, defossilizing aviation, and I think navigation will also go very well with the possibility, right, Minister, of using ethanol and methanol in cabotage, in maritime navigation. And you also launched the sustainable car, Mr. President. You removed the IPI tax, zero IPI tax, for the sustainable car. What is a sustainable car? Made in Brazil. Flex Flex 80% recyclability Capô Bianco. And it cannot emit more than 83 g of CO2 per kilometer driven. As a result, sales of flex-fuel cars in Brazil increased by 31%. 31%. And it's an entry-level car, not a R$ 200,000 car, it's a R$70,000 car. The dealership also offers a discount; the manufacturer's discount has increased by 31%. Then there's the possibility for an industry that emits carbon to capture and store it. This will give a boost to the country's engineering services; being able to store this CO2 in deep rocks will open up a new market. And finally, hydrogen, the possibility of having low-emission hydrogen energy. And besides water, from the hydrolysis of H2O, there's ethanol, which has six hydrogen atoms and therefore has enormous potential in green hydrogen. Therefore, it's a gain today for employment and income. These sectors are extremely important in terms of employment and income, for the environment, in combating climate change, helping to reduce greenhouse gas emissions, for public health, improving air quality, and for energy. Congratulations, Mr. President. [applause] This ceremony is now concluded. Everyone is asked to remain in their seats until the President of the Republic leaves.