Lula tried to broker a global deal on a road map to phase out oil, gas and coal at the COP30 talks, but was stymied by opposition from producers such as Saudi Arabia, Iran and Russia.

Brazil, itself a major oil producer, nevertheless committed to presenting a plan to end its use of fossil fuels, and called on other countries to do the same.

In a decree, Lula gave his finance, environment and mining ministries 60 days to draw up guidelines on a "gradual reduction in dependence on fossil fuels in the country."

The idea is to use Brazil's oil revenues to pay for a fund that will finance the transition to clean energies.

Lula, who ran for office as a champion of the environment, has faced criticism for backing state-run oil company Petrobras's exploratory drilling at the mouth of the Amazon River.

But his government won praise for the proposal on a global deal with deadlines to stop burning the fossil fuels heating the planet.

The plan won the backing of a coalition of countries including France, the Marshall Islands and Spain, several of which are due to hold a conference in Colombia in April 2026 on ending fossil-fuel use.