Brazilian senate approves bill establishing carbon market
The carbon market has the potential to generate jobs and income based on sustainable practices, aligning Brazil with the global transition towards green economies
The Brazilian Business Council for Sustainable Development (CEBDS) complied the recent approval of Bill 412/22 by the Brazilian Senate. This landmark legislation paves the way for the creation of the Brazilian Emissions Trading System (SBCE) and represents a significant stride towards fostering a low-carbon economy in Brazil.
The bill underscores the evolution of discussions surrounding carbon pricing, reflecting inputs from diverse stakeholders, including the Partnership for Market Readiness (PMR) Brazil project and the CEBDS Regulatory Framework Proposal.
CEBDS advocacy for carbon market
Foto: Envato
Since 2017, CEBDS has been a staunch advocate for the establishment of a regulated carbon market in Brazil. This initiative is regarded as a strategic move for both the business sector and the nation as a whole.
The carbon market has the potential to generate jobs and income based on sustainable practices, aligning Brazil with the global transition towards green economies. Marina Grossi, President of the CEBDS, emphasizes the importance of this legislation, which has been eagerly anticipated by various stakeholders.
Implementation approach
Foto: Envato
Throughout this journey, CEBDS has emphasized the principle of a gradual rollout across different sectors. This approach aims to incentivize efficiency and technological innovation while ensuring competitiveness.
While the recent bill excludes primary agricultural activities from the carbon market, it remains a pivotal instrument for Brazil’s climate policy.
Carbon market as part of a holistic strategy
Foto: Envato
While the regulated carbon market is a valuable tool for emissions reduction, it is not the sole solution.
Brazil’s commitment to combating climate change should also involve robust strategies to combat deforestation, strengthen command and control instruments, and develop specific mechanisms to reduce emissions within the agribusiness sector. These actions are essential for achieving Brazil’s climate change mitigation goals.
Future steps
CEBDS remains committed to collaborating with the Brazilian Chamber of Deputies to advance the bill further while preserving its foundational principles. The goal is to establish an integral, robust, and efficient emissions trading system in Brazil, reinforcing the nation’s commitment to sustainability and climate action.