AbstractAlthough it is well known that large-scale bioenergy expansion erodes different environmental, social, and economic dimensions of sustainable development, in countries like Brazil, bioenergy is institutionalized as a flagship climate strategy aimed to cut down CO2 emissions in transport. These trade-offs have serious implications for climate change governance and sustainable development; however, conventional approaches have not yet properly explained this seeming paradox. This article addresses this gap from a critical development pathways approach to bioenergy as a maladaptive strategy in Brazil. I propose an analytical framework to observe how different ideas, interests, and institutions interplay in the historical institutionalization of bioenergy as a climate strategy. The analysis shows that bioenergy institutionalization has been driven by the endemic economic crisis in the sugar sector and governmental interests associated with security and developmental imperatives. The unsustainable co-evolution of development pathways and bioenergy, marked by deforestation, land colonization, and agricultural expansion, has narrowed the adaptation space in agriculture, gearing current climate policy towards path-dependent maladaptive strategies like bioenergy. Paradoxically, framing bioenergy as a climate strategy has been useful to justify more expansive policies in favor of the sugarcane industry, and to greenwash the Brazilian climate policy in the international arena of climate governance.