Carbon market proposal is “practically ready”, says secretary
The secretary explains that the draft proposal is based on projects that are being discussed in Congress. He argues that the construction of the text was carried out listening to the sectors involved, as is the case of the industry. In June, the National Confederation of Industry (CNI) presented a proposal for a regulated carbon market to the government. The CNI document provides for the same model adopted in the Executive’s project. Rollemberg recalls that this is an environmental and economic agenda.
“This proposal creates a Brazilian Emissions Trading System and defines the model, which is the existing model in Europe, in several places in the world, it is the model defended by the industry, the model cap and trade. Defines emission limits from 25 thousand tons of carbon equivalent per year. Companies would be regulated, they would receive emission quotas that they would have to comply with”, said the secretary during a hearing of the Mixed Parliamentary Front for Natural Resources and Energy, held in the Senate on the last 12th.
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Convergence
Decarbonization has been a point of convergence between the Executive and Legislative powers. The PL is pending in the Chamber of Deputies 2148/2015 which, among other points, establishes the reduction of taxes for products suitable for the low-carbon green economy. Attached to it is the PL 528/2021. The proposal regulates the Brazilian Emissions Reduction Market (MBRE), provided for in the National Policy on Climate Change (Lei 12.187/2009).
The project provides for the creation of a National Registration System, with the objective of establishing climate governance. The project allows changes in carbon markets to be better monitored, making the opportunities that the country can identify more transparent and participatory.
The carbon credit market is a system for offsetting greenhouse gas emissions. It works like this: each company has a certain limit: those that emit less are left with credits, which can be sold to those that have exceeded the limit. The carbon credit is equivalent to 1 ton of carbon dioxide (CO²) or other gases that are no longer emitted into the atmosphere.
For federal deputy Zé Vitor (PL-MG), member of the Commission for the Environment and Sustainable Development, carbon credits are an intelligent and viable strategy for environmental preservation. The parliamentarian believes that discussions on the subject in the National Congress may lead to the approval, still in 2023, of the regulated carbon market.
“The regulated market is a global discussion. And I see that we are ready. Brazil is the main interested party in this matter in the world due to its ability to generate and produce carbon credits and because it is also a business opportunity. This can be one of the great pillars of this new green economy that we talk about and are working to build”, argues the parliamentarian.
carbon market
In the Paris Agreement, Brazil formalized the commitment to reduce its greenhouse gas emissions by 37% by 2025; and by 50% by 2030; in addition to achieving climate neutrality by 2050. Environmental law specialist Alessandro Azzoni sees the regulated carbon market as an alternative capable not only of generating important environmental gains for the world, but also of boosting Brazil’s economic gains. According to the specialist, the generation of carbon credits in the Amazon, for example, would be enough to finance all the protection of the area.
“The impact of adopting the regulated carbon market in the country would be spectacular. One, because you would raise an issue of environmental preservation; would be able to set reduction targets in industries and companies. So, setting targets for companies and industries on the issue of reduction would be very important to provide liquidity for the domestic market as well, it’s no use just having the foreign market. And the most important thing is that it is a tool in hand for environmental preservation, ”he says.
Azzoni points out that the carbon market, in addition to the environmental aspect, has the potential to generate billions of dollars for Brazil. He explains that, today, the owner of a property with a preservation area has a high cost to keep it preserved. With the carbon credit, that owner would have a mechanism to monetize this process.
By Brasil 61
