According to official information from the Brazilian Stock Exchange (B3), organizations from different sectors in Brazil – Amaggi, Auren, B3Bayer, BNDES, CBA, Dow, Natura, Rabobank, Raízen, Vale, Votorantim and Votorantim Cimentos – came together to develop the voluntary carbon market in Brazil and contribute to the global market for high integrity carbon credits.
Decarbonization of the economy: national companies launch the “Brazilian Initiative for the Voluntary Carbon Market”
The decarbonization of the economy by the middle of the century is a priority for several countries, which represent more than 90% of the GDP global, and for more than 2,500 global companies, according to the disclosure of the Brazilian Stock Exchange (B3). The official disclosure highlights that the voluntary carbon market is part of the set of solutions for the decarbonization of the global economy and has two main functions.
The first is the neutralization of greenhouse gas emissions during the journey to zero carbon (“net zero”); the second is the neutralization of emissions that are difficult to abate, once zero carbon is reached, explains the Brazilian Stock Exchange (B3).
The Brazilian Stock Exchange (B3) highlights that, according to a study by McKinsey & Company, Brazil has the potential to account for up to 15% of the world supply of voluntary credits through natural solutions, either by capturing and/or abatement of greenhouse gases. greenhouse effect.
In addition to natural solutions, Brazil also has significant potential to generate credits through various technological solutions, such as the development of green hydrogen and the capture of biomethane. According to information from the Brazilian Stock Exchange (B3), the initiative will work on several fronts with the objective of positioning the country in the leadership of a global market.
Among the main objectives to be achieved throughout its work on behalf of national and Brazilian companies in this global impact market, the Brazilian Stock Exchange (B3) highlights:
- activate the offering through the best certification/verification processes and support regulatory discussions;
- develop the financial instruments needed to align demand with supply;
- define requirements for a “curated” market and address key tax implications;
- design the independent governance body to coordinate the market;
- elaborate the engagement strategy with the main stakeholders, according to the official definition.
In addition, among the deliveries planned by the group is taking to the COP 27 (United Nations Conference on Climate Change), which will be held in November, in Egypt, a proposal of practical actions to mitigate the biggest barriers to this market, including high integrity supply and demand activation mechanisms, highlights the Brazilian Stock Exchange (B3).