Argentina and Brazil. Wednesday, 13 November 2024.
🇦🇷 Proposal for a new bill to regulate carbon markets in Argentina was presented.
Through a short law with 23 articles, the aim is to structure a market where carbon credits can be generated, registered and transferred in a transparent and secure way.
According to its justifications, the proposal considers that there are currently at least 170 types of methodologies for carbon credits, both in the forestry and land use sectors, as well as in the renewable energy, energy efficiency, homes and communities, industrial production, transport, waste management and agriculture.
Since 2005, Argentina has participated in both regulated and voluntary markets, with more than 60 carbon market projects until 2024, of which 45 CDM projects.
But it stands out the quantity “casi ínfimo si se compara con la situación a nivel global y regional. A nivel global, existen más de 12.000 proyectos de captura y reducción de emisiones certificados y registrados bajo estándares internacionales”.
It also mentions that in the last 5 years alone, 22% of carbon credits issued worldwide originated in Latin America, especially in Colombia, Mexico, more recently in Paraguay and then Brazil (see below).
Here are some elements of this new Argentine law proposal:
Certificado de Emisiones de Gases de Efecto Invernadero Reducidas, Evitadas o Capturadas - CEREC, local carbon credits allow Argentina to integrate into global carbon markets and have access to this type of climate financing;
Registro Nacional de Proyectos de Mitigación al Cambio Climático - REAMI, the national registry with all carbon projects, ensuring traceability and supervision;
Recognizing the importance of provincial initiatives and encouraging interoperability between national and provincial registries;
If, in one hand, the internal political and global geopolitical environment is challenging, on the other, the issue of the integrity of carbon credits and investor confidence are key to the success of any similar initiative. Not to mention the necessary relationship with NDCs and adaptation plans.
Click on the image below to read the full bill on the portal Mesa Argentina de Carbono, which brings together companies, institutions and people from the value chain of carbon markets in that country, interested in generating the necessary conditions for the development of carbon markets in Argentina.
Finally, as a reference about Argentine carbon markets - perhaps not yet taking into account the new bill above - see here the link to the official government page, and the document that can be downloaded below “Mercados de Carbono. Preguntas Frecuentes. Versión 2 | Abril 2023”
🇧🇷 In Brazil, the approval of the bill that creates the Carbon Market has been postponed. The debate in the Federal Senate scheduled for November 12th was short-lived, having been postponed until 2pm (Brasília time) today, November 13th.
It is worth mentioning that in the hours leading up to the postponed session, the number of amendments increased significantly. If until last weekend there were 27, now there are more than 50. Some of them are very interesting and new, compared to those we have already reported. Among these new ones:
need to register the carbon credit project in the property registry of the district in which the property used as the basis for the project is located;
possibility of individual carbon credits and for small and medium-sized companies;
equal treatment of imported products and raw materials in terms of carbon footprint;
highlight of benefits of Carbon Capture and Storage (CCUS), DACCS (Direct Air Carbon Capture and Storage) and BECCS (Bioenergy with Carbon Capture and Storage) projects;
inclusion of 12-months as the deadline for insurers to establish technical reserves and provisions for investments in environmental assets.
If interested, the status of the political discussions can be checked through the two links below:
See you tomorrow.
