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This policy brief by the Climate Policy Initiative (CPI) analyzes the relationship between energy efficiency and productive efficiency in Brazilian industry from 2003 to 2015. It finds that while individual firms have improved their resource use, the overall market share of the most efficient firms has declined, hindering aggregate productivity. The report argues that Brazil's energy efficiency policies have historically been reactive and focused on the residential sector, neglecting the industrial sector, which is the largest energy consumer.

This executive summary by the Climate Policy Initiative analyzes the state of energy efficiency (EE) in Brazil, highlighting a historical tendency toward reactive, residential-focused policies rather than long-term industrial planning. Through an economic analysis of 106 industrial sectors from 2003 to 2015, the document finds a strong correlation between energy efficiency and productive efficiency, noting that while individual firms have improved, the market share of the most efficient firms has declined. The report concludes that correcting resource misallocation—particularly capital—could significantly boost aggregate productivity.