This Wednesday, the 13th, the Senate approved the bill regulating the carbon credit market in the country. The vote was symbolic – that is, without recording the vote of each parliamentarian. Senators will also analyze highlights made to the text.
The vote takes place after months of negotiations between the Chamber and Senate, both from a procedural point of view and in relation to the merits of the text.
The proposal’s basic premise is to establish a limit on greenhouse gas emissions by some companies. The text defines what it calls the regulated market, that is, the one in which these companies that will have to adapt to the limit established by the State will be included, and the voluntary one – in which there is no obligation to offset emissions, with rules created by the companies .
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The regulated market will be managed by the State, which will define reduction targets and criteria to be observed. The voluntary market does not have standardization defined by the State, but by private companies, which establish their own targets and seek carbon credits to offset their emissions.
The regulated market will be linked to the Brazilian Greenhouse Gas Emissions Trading System (SBCE), with the generation and compensation of credits for greenhouse gas emissions. There will be Brazilian emission quotas (CBE) and verified emissions reduction or removal certificates (CRVE), each quota representing one ton of carbon dioxide equivalent (tCO2e).
The SBCE will have shared governance between the Interministerial Committee on Climate Change (CIM), which will define the general guidelines of the SBCE and approve the National Allocation Plan (PNA); a management body, which will be responsible for implementing and managing the SBCE; the Regulatory Affairs Chamber, made up of representatives from regulated sectors, as advisor to the managing body; and the Permanent Advisory Technical Committee, which will provide input and recommendations to improve the SBCE.
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Agribusiness, for example, managed to be included in the voluntary market in the Chamber of Deputies. One of the agricultural arguments is that the ways to measure carbon emissions from livestock activities are difficult and that countries that adopt this market do not include agriculture in this regulated market.
The new version of the proposal report also maintained a change made in the Chamber so that agribusiness can generate carbon credits through the maintenance of Permanent Preservation Areas (APP), legal reserves and areas of restricted use. The change was a suggestion from the ruralist group in the Chamber of Deputies and benefits the sector, as it allows the generation of carbon credits in areas that should already be preserved anyway.
The rapporteur also established that 75% of SBCE resources are allocated to the Climate Fund. The text establishes that 15% must be allocated to the maintenance of the SBCE and that 5% must be directed as compensation to indigenous peoples for the conservation of native vegetation.
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