Recognized worldwide as an efficient mechanism for reducing GHGs, parliamentarians from the National Congress worked to regulate the national carbon market. The respective bills (PL) were approved in the Chamber of Deputies and the Senate in 2023. With these proposals well designed, it is now necessary to align small details of convergence and divergence between the two legislative houses, as stated by Luiz Antonio Pinazza, Agricultural Engineer and consultant for the Agrolink portal.
According to the consultant, this complex process involved texts in around 11 PLs. Traditional and newer trading partners have consulted the most advanced and mature models. The research covered countries in the European Union, United States, Mexico, South Korea, United Kingdom and China, among others. Generally speaking, regulated markets focus on polluting industries, while primary agricultural production falls within the voluntary market.
Advances and challenges in the carbon market: From COP3 to the Paris agreement and beyond
The carbon market emerged to pressure economies to reduce greenhouse gas (GHG) emissions, the main causes of climate change and causes of extreme events in the world. In 1997, at the 3rd Conference of the Parties (COP) of the United Nations Convention on Climate Change (COP3), the first international treaty on the environment to reduce GHG emissions, known as the Kyoto Protocol, took place in Japan.
Since then, similar agreements have evolved greatly, especially in this century. Thus, the most incisive discussions about the importance of companies adopting measures towards international decarbonization were growing. This process accelerated after the signing of the Paris Agreement, at COP20, in France, in 2015. The treaty provided for the reduction of GHG emissions, to limit the increase in global temperature to levels well below 2° Celsius in relation to levels pre-industrial.
Another important step was the implementation of the global carbon market on CO26 in Glasgow, Scotland, in 2021, marking a historic record. Among the demands aligned by Brazil, this was one of the main demands. With this positioning, the doors were open for countries to fulfill their commitments to each other with the commercialization of carbon credits.
Source: agrolink
