2023-06-09 22:03:38
© Reuters Carbon market: government will consult sectors impacted by measure
To try to avoid setbacks and congressional rejection of the draft that regulates the carbon market in the country, the government intends to consult with sectors that will be impacted by the measure.
In the opinion of a member of the government who is familiar with the proposal, there is room for the Legislature to approve the proposal by the end of the year, given the motivation for COP28, to be held in Dubai, in the United Arab Emirates, in November, and the confirmation Belém, capital of Pará, as the host of COP30, in 2025.
Even if the carbon market has a law by the end of 2023, its effective operation will still take some time. This is because the project establishes a prior period of two years in which the provision of emission information by economic activities would be mandatory. The gathered data will subsidize the elaboration of the so-called National Allocation Plan, in which the emission limits, the amount and the form of allocation of the Brazilian Emissions Quota (CBE) will be established, in addition to the trading rules.
The government’s estimate is that around 4,000 installations will be subject to the regulated market, if considering emissions above 25,000 tons of CO2 equivalent per year. Industry, energy, waste and agro residuals are included in the account. In practice, 0.1% of all economic agents will be monitored. Although small, the portion corresponds to about half of the emissions from economic activities in the country – excluding forests, the source of a large part of Brazilian emissions due to deforestation.
Today, Brazil already has a voluntary carbon market, which will continue to be valid. The government’s idea is that the law brings mechanisms so that the regulated environment – and, therefore, mandatory -, talks with the volunteer, for example, for the possibility of selling the latter’s credits to regulated companies.
The information is from the newspaper The State of S. Paulo.
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