Monday, 10 February 2025.
The Curves of the Climate Paths. In a context of energy transition with a rapid growth of solar energy, the IMF revealed that annual subsidies for fossil fuels exceed US$ 7 trillion, while the World Bank highlighted that the external debt of developing countries reached US$ 8.8 trillion. Celebration of the 10th anniversary of the Paris Agreement and preparations for COP30. China, India, and Brazil are moving their carbon markets. And much more, including events and opportunities. 🔔 Read here the week's clippings.
WORLD
IMF Reveals: Fossil Fuel Subsidies Exceed US$ 7 Trillion Annually
Significantly higher than previously thought, the IMF highlights the magnitude of global fossil fuel subsidies. The estimate, which includes both direct subsidies and unreflected environmental costs, represents 7.1% of the 2022 world GDP. According to the IMF, reforming these subsidies could have substantial fiscal, environmental, and social impacts, benefiting both governments and the environment. Click here for the portal, which includes a suggestion for this reform plan with 6 "ingredients."
World Bank: External Debt of Developing Countries Soars to US$ 8.8 Trillion
The "International Debt Report 2024" indicates that the external debt of low- and middle-income countries has increased significantly, reaching a total of US$ 8.8 trillion. The World Bank highlights that the pressure to pay high interest rates has led countries to face budget constraints, forcing many to cut spending on sustainable development projects, which could delay efforts to combat climate change and preserve biodiversity, as well as limit their investments in other critical areas such as health and education. Click here for the report.
Our World in Data: Rapid Growth in Solar Energy Installation from 2004 to 2023
While in 2004 it took about a year to install one gigawatt (GW), in 2023, this capacity was added daily. That's right, daily! As a reference, one GW of energy is enough to power a city like New York, London, or Sydney for about one month. All thanks to reduced solar panel costs, government support, and technological advancements. See the full article.
CLIMATE GOVERNANCE
The Curves of the Climate Paths: COP30 in Brazil and the 10th Anniversary of the Paris Agreement
The UNFCCC Executive Secretary, Simon Stiell and the Designated President of COP30 met this week in Brasília. Among various topics, they discussed the importance of countries submitting new climate plans by September 2025 for inclusion in the NDC Synthesis Report, which will be published before COP30. Stiell also expressed confidence in Brazil's ability to organize a successful COP30. He highlighted the architect who designed both Brasília and the UN Headquarters in New York: “I’m told that Niemeyer broke the mould, in part by moving away from rigid, straight lines to embrace curves and fluidity. Lines that remain purposeful and highly functional, while also reflecting our humanity.”
Last Week: Ecuador, Lesotho, Saint Lucia, Andorra, and New Zealand Also Update Their NDCs
And regarding Article 6, we noted the following references in some of these new Nationally Determined Contributions:
New Zealand: “New Zealand aims to achieve our second NDC primarily through domestic emissions reductions and removals. We recognise the value of international cooperation and may participate in cooperation under Article 6 during the NDC period.”
Saint Lucia: “Saint Lucia is considering the potential role of Article 6 in delivering its NDC.”
Paris Agreement: Is Indonesia Following the US in Withdrawal?
A few days ago, Indonesia's special envoy for climate change and energy commented on the US withdrawal from the Paris Agreement: "This is a matter of justice. Indonesia produces 3 tons <per capita per year> of carbon while the US produces 13 tons, yet we are the ones being told to close our power plants and reduce our steam power plants. So, where is the sense of justice here? … Indonesia always wants to be 'a good boy.' But the 'big boys' are not necessarily 'good boys' either, right?”
CARBON CREDITS
Brazil: Government Plans to Create New Regulatory Agency for the Carbon Market
According to various sources, the Brazilian Ministry of Finance recently indicated to the Interministerial Committee on Climate Change (CIM) that studies are underway to create a regulatory agency responsible for managing the carbon market in the country. As the minutes from the last CIM meeting are not yet available, it is worth monitoring the matter.
China Authorizes 8 Brokers to Enter the Carbon Market: Increased Liquidity
A few days ago, eight securities brokers were authorized to participate in the domestic carbon markets in China, using their own funds to increase capital liquidity and reduce transaction costs. By the end of 2024, the trading volume in China's carbon market reached 630 million tons, with a cumulative value of 43.03 billion yuan (US$5.91 billion). The entry of these brokers into the carbon market aims to improve the carbon pricing mechanism and help companies achieve emission reduction targets economically. Read more in China Daily.
India: Google Supports Revolutionary Biochar Project
Recently, Google signed an agreement with Varaha to purchase carbon credits from Indian farms. This agreement is one of the largest involving biochar, a material that removes carbon dioxide from the atmosphere and returns it to the soil. Google will purchase 100,000 tons of carbon credits by 2030 as part of its initiative to offset its emissions. See the LinkedIn post by Madhur Jain, co-founder and president of Varaha, and visit the company's website for more details about the biochar project.
ENERGY TRANSITION
IATA Innovates: New SAF Accounting and Reporting Methodology Launched
A recent publication by the International Air Transport Association (IATA) presents a detailed methodology for accounting and reporting emission reductions associated with the use of Sustainable Aviation Fuel (SAF). This methodology was developed to ensure that the emission reductions achieved through the use of SAF are accounted for consistently, transparently, and accurately. It also represents an important step in the preparation of the IATA SAF Registry, which will be launched in April 2025 and will play a crucial role in creating a functional global market for SAF.
Decarbonization in Freight Transport: Solutions for a Greener Brazil
The article from SAE Brasil explores the energy transition in heavy vehicles, highlighting the increasing use of biofuels. It mentions that in Brazil, flex-fuel engines (gasoline and ethanol) are common in passenger vehicles, but there are no options for ethanol-powered cargo vehicles yet. The article also points out natural gas as an important alternative due to its lower CO2 emission factor compared to diesel and gasoline. According to OECD data, Brazil is responsible for 24.3% of the world's biofuel production.
Japan and Brazil: Strategic Partnership in Bioeconomy, Decarbonization, and Energy Security
On February 5, 2025, the Japan Bank for International Cooperation (JBIC) and the Brazilian Ministry of Development, Industry, Trade, and Services (MDIC) discussed the possibility of jointly financing energy transition and green economy projects. JBIC expressed interest in supporting Brazilian initiatives focused on decarbonization and environmental sustainability.
EVENTS
Online, Artificial Intelligence and Environment: 6th season of Fundação FHC's original minidoc series
The new edition of “Vale a Pena Perguntar” addresses the paradoxical relationship between artificial intelligence (AI) and the environment, showing how these technologies can both exacerbate and positively contribute to climate challenges. It also explores the concentration of power among large companies in the AI field and the challenges of regulating and promoting sustainability in this sector, emphasizing the potential benefits and risks for Brazil. Four experts share their insights. Watch it here.
February 13, 2025, IFRS: 7th Episode “Perspectives on Sustainability Disclosure”
This episode will focus on accounting for greenhouse gas (GHG) emissions and explore how companies can prepare disclosures in accordance with IFRS S2. GHG emissions disclosures will become an integral part of conventional financial reporting for jurisdictions that adopt the ISSB Standards. Click here for more information.
March 11, 2025, Toledo Marchetti Advogados: Infrastructure Financing Forum
Bringing together experts, regulators, government representatives, financiers, and market agents, the event will focus on discussing topics such as economic projections, geopolitical risks, the impacts of investment funds, and the infrastructure capital and debentures market. Issues related to the energy transition and carbon emission reductions in the infrastructure sector will also be addressed by the panelists. It will be held at Arena B3, Historic Center of São Paulo, Brazil. Register here.
OPORTUNIDADES
Gold Standard
HR/Payroll Officer, função híbrida trabalhando em Genebra.
Inscrição até 23 de fevereiro de 2025.
Mais detalhes aqui.
IETA International Emissions Trading Association
Policy Advisor, contrato em tempo integral, baseado no Brasil 🇧🇷
Mais detalhes aqui.
OPPORTUNITIES
Gold Standard
HR/Payroll Officer, hybrid role working in Geneva.
Applications due by February 23, 2025.
More details here:
IETA International Emissions Trading Association
Policy Advisor, full-time contract, based in Brazil 🇧🇷
More details here:
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