Brazil could potentially amass approximately US$120 billion annually, equivalent to 5% of its Gross Domestic Product (GDP), via a regulated carbon market, stated Geraldo Alckmin, Brazil’s vice president.
Speaking at an industry and carbon market event, Alckmin underscored Brazil’s significant potential in this area, owing to the country’s possession of the world’s largest tropical forest and a considerable part of its clean energy resources.
A regulated carbon market provides a platform to set a carbon price, ensuring legal certainty and reliability, which can drive investments.
Each firm from each sector is aware of its annual maximum emission limit in terms of CO2 equivalent.
If a company’s emissions fall below this limit in the evaluated timeframe, it can trade the excess.
Alckmin reaffirmed the federal government’s pledge towards sustainable development, identifying the regulated carbon market as a key mechanism to attain emission reduction targets and tackle climate change.
He emphasized the urgency of this matter, stating, “The government is committed to sustainable development and one of the most important ways is the regulated carbon market.
This will motivate people and companies to decarbonize, creating markets, business opportunities, income, and foreign trade, which is crucial.”
He spoke on behalf of President Luiz Inácio Lula da Silva at the event’s opening in Brasilia.