Today is Tuesday, September 26, 2023.
Brazil, final stretch of the Bill that regulates the Brazilian Emissions Reduction Market (MBRE)?
It seems so, since yesterday, days after Executive and Legislative leaders participated in the UN meeting in New York, the matter entered the agenda of the Environment Commission meeting, scheduled for tomorrow, September 27th.
Also yesterday, the “Regulated Carbon Market & Companies’ Climate Journey” event took place, organised in São Paulo by Future Carbon for a group of businesspeople and experts.
Cristina Reis, Undersecretary for Sustainable Economic Development, was present.
The Undersecretary commented that the Bill considered several references, lessons learned from years of cap & trade in other jurisdictions and valued the technique. “Market and pricing in the cap & trade model is seen as the best solution” she summarised.
The approach was also pragmatic. In other words, the Bill took into account everything already existing in the Legislative. Regarding the amendments, the Undersecretary highlighted some “marking changes” relating to definitions, governance, taxation and legal nature (see for example, amendments 27 and 7) .
According to the Undersecretary, approving the Bill “is just the first step, followed by the relationship with the voluntary market”.
Finally, she asked for engagement in the public hearing on Sustainable Taxonomy which runs until October 20th. (coincidentally, the same date as the joint public hearing of the CVM, CFC, CPC on accounting rules for Decarbonisation Credits).
As in MBRE there will be regulatory requirements on emitters from all economic sectors - concept of “source”, not “company” - in the ranges above 10 and 25 thousand tons of CO2 emitted per year, the need for inventories is beginning to heat up the market .
In this sense, the event also marked the launch of the partnership between Future Carbon and Sinai, based in San Francisco, United States and founded by the Brazilian Maria Fujihara.
In the end, Fábio Galindo, CEO of Future Carbon, called on more corporate boards to adopt a climate friendly attitude because, regarding allowances, they will probably be creditors of those who maintain a skeptical position for longer.
Supported by Future Carbon, Amazônia Soul, an “impact business accelerator that activates the Amazon bio-economy” presented products - handicrafts, copaíba oil and honey - generated in forest communities from carbon credit projects.
