Carbon market contributes to Brazil’s goals in the Paris agreement

The regulation of the carbon market was the subject of the public hearing in the Federal Senate, which discussed the bill 412/2022which regulates the Brazilian Emissions Reduction Market (MBRE), and other matters that are processed together with the proposal.

The executive manager for the Environment and Sustainability at the National Confederation of Industry (CNI), Davi Bomtempo, highlighted during the meeting the need to regulate the carbon market to stimulate negotiation, innovation and competitiveness of industries. He said that the measure is also important for other sectors.

“Today, what is defended in terms of a regulated market is not just a request from the industrial sector, several other economic sectors have been benefiting, such as the transport sector, fuels, it is a convergence of sectors in the understanding that the regulated market carbon dioxide is, indeed, important and it will encourage alternatives so that they can reduce emissions”, he emphasizes.

The climate director of the Brazilian Business Council for Sustainable Development (CEBDS), Viviane Romeiro, highlighted that the carbon market pricing instrument requires consistent technical and political discussions and that it is important to improve legal certainty, reducing regulatory uncertainty .

“The view of the business sector is that this is a very important agenda of comparative and competitive advantages within the scope of the green package that the Ministry of Finance is preparing, we recognize the importance, one of the basic axes of this package is precisely the carbon market .”

Senator Confúcio Moura (MDB-RO) also defended that it is necessary to offer greater legal security for the sectors involved. “Brazil is plagued by deforestation and this has left the country exposed over the last 6 years and we would very much like to stop deforestation and the only way to stop deforestation would be to compensate producers for having sources of resources to leave the forest standing,” he explains.

Also present at the hearing were senator Leila Barros (PDT-DF), rapporteur for the bill; Aline Ferreira, coordinator of ANBIMA’s Carbon Credit Working Group; Cristina Reis, undersecretary for Economic and Sustainable Development at the Ministry of Finance; and Luciano Rodrigues, director of Economics and Sectorial Intelligence at the Union of the Sugarcane and Bioenergy Industry (UNICA).

Carbon market around the world

According to the executive manager for the Environment and Sustainability at the CNI, Brazil needs to move forward on this issue, as many countries and economic blocs have already begun to regulate their carbon markets. And for it to work, Bomtempo says, strong governance with private sector participation is needed.

“This is very important because it is the sector that will be regulated, so it is important for it to be present in strategic decisions and evaluations so that we can have a more efficient model, keep the financial resources applied within the system, work in a more efficient way. shared with the issue of offsets – compensation, that is, promoting the inclusion of offsets with stimulus to the carbon market”, he points out.

Davi Bomtempo pointed out that the carbon market is one of the strategic points for a low-carbon economy. He stated that the measure can bring benefits not only to governments, but also to companies and the population. For this, efficient regulation would be enough, so that everyone can benefit, he adds.