Since assuming power in early 2023, President Luiz Inácio Lula da Silva has won international recognition for his green agenda and strong reduction of deforestation of the Amazon Rainforest.
An initiative of this agenda is the plan to launch a regulated carbon market as a measure to combat climate change and reclaim Brazil’s credentials as a leader in the environment for Latin America’s largest economy.
Advances are being made in Brasilia, on a bill that would establish a “cap-and-trade” system, where carbon dioxide removal projects such as tree planting, would sell tradable permits for companies to cover emissions.
In an optimistic scenario, the International Chamber of Commerce in Brazil said that the country could receive revenues of $120bn by 2023 from regulated and voluntary carbon markets.
However, environmentalists warn that the bill exempts livestock and primary agricultural – unprocessed goods directly from farms. These are some of the countries’ main sources of greenhouse gases.
If it manages to develop an efficient system with high integrity, Brazil can set an example to other countries like for example India. Which would give Brazil the potential to be one of the most important domestic carbon markets in the world, says Pedro Venzon, a policy adviser at the Geneva-based International Emissions Trading Association.
Source: Financial Times
