The potential revenue generation from carbon credits for Brazil by 2030 has risen from US$100 billion to US$120 billion.
The updated study “Opportunities for Brazil in Carbon Markets” shows that.
The International Chamber of Commerce (ICC Brazil) developed the survey, a business organization, in partnership with WayCarbon, the most prominent strategic consulting firm focusing exclusively on sustainability and climate change in Latin America.
The survey aims to update the market on the development of the agenda after COP26, also bringing an unprecedented mapping of the segment’s national ecosystem and recommendations for economic agents in Brazil.
According to the study, in 2021, Brazil was responsible for 12% of the global supply of credits for the voluntary market, surpassing the participation of 2019 (3%) and the most optimistic scenario (10%) used in last year’s study for 2030.
“Such performance reflects the increased number of credits issued from nature-based solutions and the influence of Article 6 of the Paris Agreement regulation at COP26.”
The research also shows that, considering the price of an optimistic scenario of US$100 per ton, Brazil’s capacity to meet can reach from 22.3% to 48.7% of the global demand for credits from the voluntary market, which should reach between 1.5 and 2 gigatonnes of CO2 and at the end of the decade.
The study recommends the Brazilian government and the private sector strengthen the national market and support its maturation process.
In the government’s case, among other guidelines, the research says that “it is essential that Brazil, in its regulatory role, develops and disseminates a specific plan to meet its NDC (Nationally Determined Contribution) and the commitments to zero illegal deforestation and methane reduction.
In the case of the private sector, it is necessary to “support the simplification of the credit transaction processes in the voluntary market, as well as establish partnerships with other market players to strengthen and cooperate for the maturing and fair return to the landowner and local communities involved in the project,” among other recommendations.
With information from Canal Rural