This article first reviews energy trends and energy policy objectives in Brazil. It then proposes and analyzes 12 policy options for advancing energy efficiency and renewable energy use. The policies are analyzed as a group with respect to their impacts on total energy supply and demand as well as CO2 emissions. It is determined that the policies would provide a broad range of benefits for Brazil including reducing investment requirements in the energy sector, cutting energy imports, lowering CO2 emissions, and providing social benefits. (C) 2003 Elsevier Science Ltd. All rights reserved.