Thursday, 07 November 2024.
As we exclusively anticipated last weekend, the day before yesterday the regulation of the national Carbon Market formally moved again in the Brazilian National Congress.
Although the bill was not voted on, the rapporteur delivered her 77-page updated opinion on the Brazilian Greenhouse Gas Emissions Trading System (SBCE).
For Agência Senado, the Senator commented that she expected to read and debate the matter on Tuesday, November 5th, but that she understood the decision to postpone it. She also highlighted having listened to deputies and senators when drafting the substitute, whose text maintains "more than 80%" of what was approved by the Chamber of Deputies.
Therefore, the rapporteur hopes for rapid approval in both Houses, the Senate and the Chamber of Deputies, with the next attempt being on Tuesday, October 12th.
Click on the image below to read the article “Votação do marco regulatório do mercado de carbono é adiada para terça” directly on the Agência Senado portal.
At the same time, a series of amendments were immediately submitted, in a clear demonstration of readiness on the topic. As of the closing of this edition, there were 24 amendments proposed by senators from the following states:
4 amendments from Rio Grande do Sul (RS);
Pará (PA), Roraima (RR) and Acre (AC) with 3 each;
2, but equivalent to 5, from Santa Catarina (SC);
Mato Grosso do Sul (MS) and Tocantins (TO) with 2 each;
Amazonas (AM), Mato Grosso (MT), Rio Grande do Norte (RN), Minas Gerais (MG) and Sergipe (SE), each with 1 amendment presented.
Below, for those interested, a brief summary of each proposed amendment, indicating which article/subject it refers to:
Article 2 (Initial considerations)
Better definition of “carbon credit”, encompassing efforts from the private sector, in this case, beef and dairy cattle (AC);
On greater clarity regarding the scope of the SBCE and the state programs “REDD+ non-market approach” and jurisdictional “REDD+ market approach” (RS);
Article 6 (Governance of the SBCE)
About the body that analyzes regulatory impacts, under the terms of the Economic Freedom Law (RR)
Article 8 (SBCE management body and its competence)
On the adoption of recognized international methodologies (RN);
Article 28. (Allocation of SBCE resources)
Remove the 5-year limit for the use of SBCE (RS) resources;
Remove the term limit, considering dependence on resource flows that will take more than 5 years (RR);
Article 29. (Obligations of operators of facilities and sources within the scope of the SBCE)
Mandatory qualification and registration of the technical person responsible (AC);
Article 37. (Penalties under the SBCE)
Balance between investment-inducing measures and sanctioning measures (RR);
About the value of fines and their applicability to economic groups (SC);
On the reasonableness and proportionality of the value of the fines, considering the national inexperience on the subject (RS);
Article 42. (About the voluntary carbon credit market)
On the commercialization of carbon credits generated in strategic sectors of the economy, in the international market (MT);
Concept of “maintenance or sustainable forest management activities” (MS);
Article 43. (On the original ownership of carbon credits)
Adjustments related to the future sale of carbon credits, relating to properties under concession or usufruct by third parties, in addition to issues of responsibilities regarding REDD+ (AM);
Issues of legal security, private property rights and jurisdictional programs (RS);
Improvement in the text to avoid weakening the right to private property in relation to jurisdictional programs (PA);
Improvement of the wording of the carbon credit concept aiming at legal certainty (PA);
Issue of legal certainty regarding the term “unconditioned” (PA);
Several improvements regarding wording and clarity, including regarding private property and jurisdictional programs (MS);
On legal security of private property in relation to jurisdictional programs (TO);
Article 56. (About insurance companies and provisions)
Indication of unconstitutionality of article that obliges insurers to constitute a minimum % in technical reserves as provisions for environmental assets provided for in the SBCE (TO);
Discussion on the amount of the minimum % in provisions for the planned environmental assets (MG);
Others
Delete Art. 59: Difference in emission level for each type of vehicle (SE);
Articles. 4, 22, 30: Improvements to the texts considering article 170 of the Federal Constitution, which defines fundamental values of the economic order, regarding any direct intervention (through the provision of services by the State) or indirect (through state regulation) (SC);
Inclusion: Carbon credits generated in strategic sectors of the economy (AC);
Follow along and be sure to read what we published the day before yesterday, about a recent decision by the Brazilian judiciary regarding the taxation of CBIOS decarbonization credits, traded on B3 Stock Exchange since 2017.
