Company: PBR
Filing Date: 2025-04-03
Form Type: 20-F
Source: 0001292814-25-001352
Chunk: 33

Company: PETROBRAS - PETROLEO BRASILEIRO SA
Filing Date: 2025-04-03
Form: 20-F
Item: Item 17
Chunk 33
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 Climate change poses new challenges and opportunities for our business. With the aggravation of climate change and the advances in regulations, if we do not adapt to new global challenges, we may be subject to financial, reputational and legal impacts, which could adversely affect our cash flow, and result in the reduction of our competitiveness, diminishing shareholder value and failure to meet other stakeholders’ expectations. Changes in environmental conditions could potentially affect some of the operating conditions in our assets, such as water availability or meteorological and oceanographic patterns.
 There is growing concern that climate change will affect the frequency of regional atmospheric circulation patterns leading to changes in meteorological and oceanographic conditions. These conditions may result in extreme weather events, such as waves, wind, and changes in ocean current patterns, which may cause significant damage and deterioration to our offshore facilities. Our resilience studies for offshore facilities use a return period of 50 to 100 years to account for extreme wind and wave conditions. However, due to climate change, this return period may be significantly reduced.
 Stricter environmental regulations, including policy-driven responses aimed at mitigating climate change, such as GHG emission permits and other mitigation responses, can potentially increase operating costs and reduce production.
 Law No. 15,402/2024 which establishes general rules for the Carbon Market in Brazil, was approved in November 2024 by the Senate and the House of Representatives and was signed into law by Brazil’s president in December 2024. However, the definition of emissions caps and reduction factors will depend on future regulations, which could lead to increased expenses and affect our Business Plan.
 A growing number of investors are seeking to align their investments with medium and long-term climate policies. Investors’ increased perception of climate risks and more significant regulatory restrictions related to carbon-intensive sectors, can lead to greater difficulty accessing capital and increased costs.
 We foresee increasing pressure to develop and use more advanced technologies to improve our operational performance in emissions to keep up with the demands of a world oriented towards a low-carbon economy. Risk arises from the loss of competitiveness due to the non-implementation of technologies or the implementation of ineffective technologies that could apply to our business. This could also potentially impact our reputation related to our climate change mitigation initiatives and targets.
 Increased demand for energy and other products with lower carbon intensity may negatively impact the demand for oil and cause a drop in oil prices more significant than predicted in our planning. In Brazil, the replacement of fossil fuels, particularly in the transportation sector, due to public policies such as “Fuel of the Future” (