Brazil, Thursday, 14 November 2024.
Late yesterday, known by the acronym SBCE, the Brazilian Greenhouse Gas Emissions Trading System law was approved by the National Senate.
The SBCE will be implemented in the following phases:
I – phase I: period of 12 (twelve) months, extendable for another 12 (twelve) months, for the publication of the regulations of this Law, since its entry into force;
II – phase II: period of 1 (one) year for operationalization, by operators, of instruments for reporting emissions;
III – phase III: period of 2 (two) years, in which operators will only be subject to the duty to submit a monitoring plan and submitting a report on GHG emissions and removals to the management body of the SBCE;
IV – phase IV: validity of the first National Allocation Plan, with non-costly distribution of CBEs and implementation of the asset market from SBCE;
V – phase V: full implementation of the SBCE, at the end of the term of the first National Allocation Plan.
This means it will take time.
Meanwhile, how about getting an idea of carbon prices in the market regime?
Here are some pricing references:
Finally, still on the pricing issue, we highlight two articles whose rereading would be important:
As a final reference, some prices quoted at the Benchmark chapter of the report indicated in this latest article:
OECD: "The 60 Euros per ton CO2 benchmark is a mid-range estimate of current carbon costs. This figure is also a low-end estimate of the climate damage caused by each ton of CO2 emitted in 2030 ... The 120 Euros per ton CO2 benchmark is a mid-range estimate of carbon prices required by 2030.";
IMF: Price floors of USD 25, USD 50, and USD 75 per ton of CO2 for low-income, emerging market economies and high-income respectively;
World Bank: "USD 50 to 100 per ton CO2 corridor for 2030"
