The Brazilian sugarcane sector plays a strategic role in the national economy, standing out both for the production of sugar and for the generation of renewable energy, such as ethanol, which contributes to the diversification of the energy matrix. This article examines the role of the State in the development of the sector, analyzing public policies such as Proálcool, created to reduce dependence on oil during energy crises. In addition, it addresses tax incentives, subsidies and investments in infrastructure that have driven the modernization and competitiveness of the sector in the global market. Despite the advances, the sector faces significant structural challenges, such as land concentration, which limits the inclusion of small producers, and the environmental impacts resulting from agricultural expansion, such as deforestation and intensive use of natural resources. These problems highlight the need to reevaluate public policies, aiming to promote greater social justice, productive inclusion and sustainable practices. It is concluded that, for the sector to continue to be a strategic pillar of Brazilian agribusiness and contribute to sustainable development, it is essential to align economic growth with social and environmental objectives. With appropriate policies, Brazil can consolidate its global leadership in the sugar-energy sector, promoting a balance between competitiveness and sustainability.