The Brazilian Coalition on Climate, Forests and Agriculture congratulates the Federal Government’s current efforts in drafting a bill of law aimed at establishing a carbon emissions trading system in the country.
Throughout its history, the Coalition has emphasized and supported the adoption of a public policy to regulate the Brazilian market for emissions reductions, as provided for in Law No. 12.187/2009, which establishes the National Policy on Climate Change. Therefore, we were pleased to learn about this week’s amendment to Bill 412/2022, presented by Senator Leila Barros, which covers the Executive’s proposal to create a Brazilian Greenhouse Gas Emissions Trading System (SBCE, in Portuguese acronym), as well as other related provisions.
To enhance dialogue, this text stresses some relevant topics:
With specific regard to the land use and forestry sector – the Coalition’s core business – we would like to make a few considerations:
Taxation dimensions must be carefully assessed by the government at this time, in order to avoid excessive burdens on a newly emerging market. It is worth noting that the Executive recently announced the Ecological Transition Plan, in which the carbon market plays a vital role. The SBCE should avoid increasing charges and taxation, as well as establishing incentives on carbon credit generation.
Lastly, we stress the relevance of the Bill adopting a law framework, establishing clear principles, structures, and guidelines. This will send a meaningful message to both the national and international markets. Specific details on principles must be addressed in subsequent regulations.
These are key aspects aimed at encouraging further thoughts among the regulatory authorities, contributing towards improvement of current regulations. Once again, we congratulate the Executive Branch on its initiative to develop decarbonization measures in Brazil.
The Brazilian Coalition on Climate, Forests and Agriculture is a movement comprised of more than 350 organizations, including agribusiness entities, companies, civil society organizations, the financial sector, and the academia.