The message given to the world during the COP22 was that “nothing can stop global climate action”.
Held in Marrakesh, Morocco, the conference lasted two weeks and promoted debates involving governments, civil society and companies.
The main purpose was to reiterate the commitments made by countries such as the Paris Agreement and seek pathways to climate finance.
The central objective of the Paris Agreement is to maintain the global average temperature at 2ºC below pre-industrial levels, with efforts to contain it to 1.5º.
This year's conference then focused discussions on the implementation of goals already adopted around the world, the so-called NDCs (Nationally Determined Contribution).
Therefore, the presence of the business and financial sectors was highlighted in this edition of the conference. Topics such as the development of innovative financing mechanisms for implementing initiatives that help achieve NDCs were discussed.
For Sarney Filho, Brazil's current Minister of the Environment, the shift to a low-carbon economy represents a window of opportunity for business.
See the main topics of COP 22 and how Brazil participated in the conference:
Carbon Pricing to achieve NDCs
Treated as a very important item for achieving NDC goals, carbon pricing appeared several times as the main topic of discussion at the conference. Under debate were the three existing models for carbon pricing: direct taxation, in the form of a tax; the transaction of carbon certificates, sold on the financial market; or even a hybrid model, a combination of both.
During the conference it was the study carried out by CEBDS was launched in partnership with CDP and support from We Mean Business: Carbon pricing: what the business sector needs to know to position itself. The objective of this document is to provide the necessary information to Brazilian businesspeople about assigning a price to carbon, such as:
- efficiency in reducing emissions;
- benefits to socioeconomic development;
- impacts on the competitiveness of different sectors;
- how companies are part of this process;
“We brought the study public here at the Climate Conference because companies are an inseparable part of the solutions in favor of the decarbonization of the world economy and this is a mechanism that brings greater predictability to their investments and greater competitiveness for low-carbon business solutions. The publication shows how companies would be included in the different carbon pricing mechanisms that can be adopted in the country, as well as their consequent impacts, opportunities and challenges”, said CEBDS president Marina Grossi, during COP22.
Brazil at COP 22
The NDC assumed by Brazil assumed in the Paris Agreement establishes 37% to reduce greenhouse gas (GHG) emissions by 2025, based on the year 2005.
Sarney Filho pointed out that the country managed to reduce deforestation by 80% with the help of technologies. However, he highlighted the importance of expanding investments in climate actions. Watch the video.
“The Amazon has 25 million people and the poorest municipalities in Brazil. If the environmental asset is not valued, deforestation will increase again, which is why it is necessary to use economic instruments such as REDD+, Bolsa Verde, compensation funds, which need to be implemented quickly”, explained the minister.
On the other hand, Blairo Maggi, current Minister of Agriculture of Brazil, highlighted the economic issue experienced by the country. Today, almost 50% of Brazilian exports come from agricultural practices. He defends better conditions so that the sector can contribute to the Paris Agreement. “We need to think of something lighter and more feasible for rural producers”, he stated.
Another important point that came into the discussion was the transport sector.
According to Rasmus Valanko, Director of Climate and Energy at World Business Council for Sustainable Development (WBCSD), despite emitting 25% of all GHGs in the world, the transport sector may be primarily responsible for the transition to a low-carbon economy.
Today, in Brazil, transport represents alarming numbers due to the dependence on fossil fuels and the road modal system in cargo transport. Trucks, for example, emit around 82.2 million tons (data from 2012), while the entire industrial sector emits 91.2 million tons.
Amid this scenario, the Minister of the Environment took the opportunity to highlight the benefits of biofuel and launch the platform Biofuture. The initiative involves 20 countries and aims to encourage the development and implementation of biofuels on the market, in order to be an alternative to fossil fuels.
Private sector as a fundamental piece
The private sector was approached throughout COP 22 as a key element in driving initiatives in the low carbon emission market. Through financing, green bonds and other forms of participation, the sector is seen as a fundamental part for development and obtaining results.
Some leaders from the Brazilian private sector contributed to the panel 'Production with low carbon intensity – an opportunity for industry in the 21st century', moderated by the president of CEBDS, Marina Grossi, and held at Espaço Brasil, the Brazilian government area at COP22.
David Canassa, vice president of CEBDS Thematic Chamber on Energy and Climate Change and general manager of Sustainability and Innovation at Votorantim, spoke about the use of aluminum waste for cement production, which reduces energy demand in limestone production.
“We have to make energy and material efficiency so incorporated into our processes that they can generate new business and competitive advantages”, Canassa pointed out.
Ticket Log representative, Amanda Kardosh stated that the company generated 15 thousand tons in carbon credits in 2015 through the exchange of Gasoline per ethanol in company logistics.
“The case of ethanol in Brazil is little publicized, but we are one of the only countries in the world with flex fuel technology so widespread, with a wide supply of biofuel throughout the country”, he highlighted.
Braskem's Director of Sustainable Development, Jorge Soto, presented the case about green polyethylene and warned that the company aims to be a reference in the chemical sector in Brazil in the constant search for less emitting and yet more competitive products.
“Braskem invests US$ 100 million in innovation and technology every year and is concerned about the carbon emissions of its suppliers, therefore, 40% of Braskem's scope 3 emissions (suppliers) are already managed”, he explained.
After countless conversations, presentations of ideas and debates, COP 22 ended with a clear signal: It's time to do more! Some participants even said that it would be very satisfactory if countries continued sustainable development projects, instead of lamenting the preventable tragedy a few years later.
If you would like more information about the conference, visit our hotsite and see complete coverage of COP 22.
