Climate Resilience and Water; Challenges and Opportunities in Brazil

Brazil is vast, diverse, and influential. With over 212 million inhabitants and one of the world’s richest freshwater reserves, the country has enormous potential. Yet, it is also highly vulnerable to climate impacts, facing increasing extreme rainfall events, prolonged droughts, and growing pressures from rapid urbanisation.

For Dutch companies looking to expand internationally, Brazil presents both a compelling case and a timely opportunity.

A water sector under pressure

Brazil’s water challenges are closely linked to climate change, resource pressures, and long-standing infrastructure gaps. These challenges directly affect social wellbeing, economic productivity, and environmental security. The key issues include the following.

Agriculture

• Growing water scarcity in the country’s highest-consumption sector
• Inefficient irrigation practices
• Agrochemical pollution and groundwater overexploitation
• Sedimentation affecting soil and water quality

Urban development

• Frequent flooding
• Insufficient access to sanitation
• High levels of non-revenue water
• Outdated water and wastewater facilities
• Fragmented institutional responsibilities

Energy sector

• Increasing stress in the water-energy nexus
• Hydropower dependency threatened by drought
• Reservoir evaporation and sedimentation
• Ageing dam infrastructure
• Emerging demand for desalination for green hydrogen production

Cross-sector challenges

• Limited digitalisation
• Insufficient monitoring systems
• Complex bureaucratic processes
• Gaps in climate-resilience planning

A market opening up

While the challenges are significant, Brazil is undergoing a notable shift. At present, Brazil is placing a strong emphasis on sustainability-related policies and is actively seeking private and international investment to support the transition towards a greener economy.

Sustainability-driven policies and the drive for a greener economy – such as the Ecological Transformation Plan – are generating new momentum for climate-resilient and nature-based solutions.

Brazil’s agricultural strength, its expanding renewable energy sector, and increasing decentralisation in urban development are creating fertile ground for international collaboration and innovation.

Dutch companies already operating in Brazil summarise it well: ‘Brazil comes with big challenges and risks, but also big rewards’.

Why the Dutch water sector can make a difference

The Netherlands is globally recognised for its integrated water management, climate adaptation strategies, and innovative technologies. This expertise aligns directly with Brazil’s growing needs.

Key areas where Dutch knowledge can add value include:

• flood-resilient urban planning and infrastructure;
• climate-smart agriculture and efficient irrigation;
• water reuse and circular water solutions;
• digital monitoring and early warning systems;
• nature-based and hybrid climate adaptation approaches;
• innovation for hydropower optimisation and reservoir management.

Download the report “Climate Resilience and Water; Challenges and Opportunities in Brazil”

With Brazil seeking private and international investment, now is a strategic time for Dutch companies to enter or expand in the market. For Dutch water companies considering export or partnership opportunities, this market scan is an essential starting point.

Through interviews with Dutch companies, several opportunities and challenges were identified in relation to doing business in Brazil’s water sector. Notwithstanding the challenges, in the report Dutch companies also share recommendations to help future businesses navigate the Brazilian context more effectively.

The report provides:

• a clear overview of Brazil’s key water challenges;
• regional and sector-specific opportunities;
• practical insights from Dutch companies already working in Brazil;
• market entry considerations and success factors.

This Brazil water market study was commissioned by the Consulate-General of the Kingdom of the Netherlands in Sao Paulo, Brazil, and executed by the Netherlands Water Partnership (NWP) in cooperation with Fundação Vanzolini.

Dutch water actors interested in or working in Brazil can request a copy of the full report to explore how your solutions, knowledge, and expertise can contribute to Brazil’s water resilience, while unlocking promising business opportunities. You can request a copy of the report by filling in the form below.

Should you have any questions, please contact NWP Project Manager Sabrina Kraaijenbrink-Doetjes.