Large Brazilian companies joined in a movement for the establishment of a regulated carbon market in the country. The Vice President of the Republic received a document signed by 45 companies, delivered at a private meeting held in São Paulo and promoted by the Brazilian Business Council for Sustainable Development (CEBDS).
The document entitled “Positioning of the Brazilian business sector on the urgency of creating a regulated carbon market in Brazil” highlights the importance of this regulated market in the transition to a green economy, emphasizing that it would contribute to increasing productivity, generating jobs and income for Brazilians, in addition to avoiding possible international sanctions related to climate issues.
According to the document, “Brazil has, in the transition to a low-carbon economy, a field of opportunities to increase productivity, generate jobs and income. There are vast opportunities in the areas of bioeconomy, infrastructure, connectivity, carbon credits and nature-based solutions.”
According to the CEBDS, the establishment of a regulated carbon market would be an opportunity for Brazil to reinforce its role as a global player, capturing opportunities and exercising leadership in the carbon market both through the fulfillment of emission reduction commitments and as a generator of credits for offsetting emissions in the domestic and foreign markets.
In addition to contributing to the reduction of greenhouse gas emissions, the regulated carbon market would be an important incentive to direct investments in cleaner technologies, according to the document. Several regions of the world, such as the European Union, China and California, already have their own carbon markets to boost green business.
The meeting also addressed other issues considered a priority by businessmen for the sustainable development of the country, such as the energy transition and the path to be followed by Brazil until COP 30, which will be held in Belém, Pará, in 2025.
The movement led by large companies from different sectors, such as energy, banking, mining, cosmetics, oil and gas, food, consumer goods, retail, pulp and paper, agriculture, logistics, steel and technology, reflects the growing awareness of the importance of of actions aimed at sustainability and the fight against climate change in the Brazilian business sector.
Law for the Brazilian Carbon Market
The director of Climate, Energy and Sustainable Finance at the Brazilian Business Council for Sustainable Development (CEBDS), Viviane Romeiro, made an emphatic defense of the need to regulate the carbon market by law, and not by decree. The statement was made during an event held this Wednesday (5/31).
Romeiro argued that the regulation of the carbon market is a complex issue of great importance for dealing with climate change and promoting sustainability. Therefore, it is essential that this regulation be established in a clear and lasting way through a specific law.
By emphasizing the importance of legislation in this context, the director highlighted that a law would provide greater legal certainty and predictability for companies, investors and other agents involved in the carbon market. Furthermore, a law would allow for the creation of a comprehensive regulatory framework, with clear guidelines on carbon pricing, the allocation of carbon credits and other measures needed to drive the transition to a low-carbon economy.
Viviane Romeiro pointed out that regulation by means of a decree, although it may be an initial measure in some cases, does not offer the same security and stability that a law would provide. She highlighted that the carbon market is a crucial tool to encourage the reduction of greenhouse gas emissions and boost the adoption of more sustainable practices by companies.
Therefore, the defense of the director of CEBDS for the regulation of the carbon market by law reflects the importance of a solid and comprehensive legislative approach to face the challenges of climate change and guarantee a more sustainable future.
Carbon Market: Features
The carbon market has been gaining prominence as an essential tool in the fight against climate change and in the search for sustainable solutions. This mechanism, which involves pricing carbon, either through taxation or a regulated market, aims to encourage companies to reduce their greenhouse gas (GHG) emissions and boost investments in cleaner technologies.
There are two types of carbon markets: regulated and voluntary. In the regulated market, interconnected sectors can buy and sell GHG emission allowances, known as carbon credits. A common example of such a system is the so-called cap and trade, in which companies receive a limited amount of permits and can trade them among themselves. In the voluntary market, companies and organizations assume responsibility for offsetting their own emissions, acquiring carbon credits from projects that effectively reduce emissions or capture carbon.
The carbon market emerged from the Kyoto Protocol, signed in 1997, which established emission reduction targets for developed countries. Since then, this mechanism has proved to be a fundamental piece in the search for climate solutions, encouraging the reduction of emissions and making it possible to offset those that cannot be avoided.
Carbon pricing, whether through taxation or a regulated market, represents an opportunity for Brazil to reinforce its role as a global player in the fight against climate change. In addition, this mechanism encourages investments in cleaner technologies, driving the transition to a more sustainable energy matrix. The carbon market is consolidating itself as a powerful tool in the fight against climate change, and its recognition and adoption is expanding worldwide. Through this mechanism, companies and governments can work together to reduce GHG emissions, promote sustainability and build a greener and more balanced future for our planet.
