The need to implement a carbon market and the urgency of better use and treatment of water resources are currently some of the main challenges that Brazil faces in order to achieve a sustainable growth model in the coming years. These were some of the main conclusions among the participants of the Sustainable Congress 2018, held on Tuesday (11) by the Brazilian Business Council for Sustainable Development (CEBDS), at Teatro Santander, in São Paulo.
During the event, which brought together the highest leadership of large Brazilian companies – responsible for generating more than 1 million jobs in Brazil in various segments –, the following was presented: CEBDS Agenda for a Sustainable Country. The document, which can be downloaded from the CEBDS website, contains 10 proposals prepared by the CEOs of the companies associated with the organization and aimed at candidates for the Presidency of the Republic. Increasing the share of renewable sources in the energy matrix, water security, expansion of basic sanitation, solutions for the transition to a low-carbon economy, financial mechanisms to encourage sustainable practices and gender equity in the labor market are some of the topics covered.
“Regardless of polarization and political passions, the election is a time to ask ourselves: where are we going? Is there a solution to this crisis? Is there anything I can do?”, challenged the president of CEBDS, Marina Grossi, during the opening of the event, highlighting that the transition to a sustainable development model depends jointly on the individual, the collective, the company and the government. “The viability of the old economic model is outdated. The Brazilian business sector has demonstrated in practice that it is possible to increase investments in more sustainable and economically viable processes”, she stated.
Carbon market
The adoption of the carbon market model as an efficient instrument to stimulate the reduction of emissions was one of the consensuses among the businesspeople participating in the congress. The lack of greater engagement from the public sector in implementing a system, however, was mentioned as an obstacle to be overcome.
“We are in favor of carbon pricing, and we understand that the best way to do this is to look at carbon credits as a solution that moves the economy. CEBDS has been leading this discussion so that intensity and predictability targets for investment are regulated and measured,” said André Lopes de Araújo, president of Shell Brazil.
Sanitation
The president of Santander Brazil, Sérgio Rial, highlighted the high level of engagement of society during this year's elections, which has raised awareness among the population about its role in the transformation process. The executive stressed, however, that the State needs to establish basic conditions to guarantee the security of investments to be made by the private sector.
“Why is the electricity sector growing? Because there is a reliable and clear framework, and companies are investing with acceptable returns. Why is the financial issue so turbulent when it comes to sanitation? Because this problem is not on our screen, but we have millions of Brazilians without water and sewage,” said Rial. “It is impossible to invest in the sector without having to negotiate with 5,600 Brazilian municipalities. Therefore, the State is not providing something fundamental, which is basic sanitation. There is no lack of money, there is no lack of investors, which is why society must mobilize.”
The flaws in the existing water treatment systems were highlighted by the president of BRK Environmental, Teresa Vernaglia. She recalled that the equivalent of six thousand Olympic swimming pools of raw sewage is dumped into rivers, springs and streams throughout the country, while 27% of the reservoirs monitored by the National Water Agency (ANA) are dry.
“Considering the low progress we have made in sanitation over the last 10 years, we will have a large fleet of electric cars driving on streets with open sewage. This is the dichotomy between advanced energy technology, for example, and water use,” compared the executive.
Renewable energy
The president of Vestas Brazil & Southern Cone, Rogerio Zampronha, noted that wind energy already represents 9% of the Brazilian energy matrix. “Last year, the volume of carbon emissions that stopped occurring because of the wind source is the same as what would have been achieved if 16 million vehicles had stopped circulating, which is equivalent to 85% of the fleet today in the state of São Paulo”.
The Director of Institutional Relations at the Brazilian Federation of Banks (Febraban), Mário Sérgio Vasconcelos, presented a feasibility study on financing for photovoltaic solar energy projects, carried out in partnership with the Inter-American Development Bank (IDB) and the Brazilian Association of Photovoltaic Solar Energy (Absolar). “Febraban has been seeking possible paths to a low-carbon economy, and we have made progress in the last 4 years. Approximately 27% of the sector's loans are already earmarked for low-carbon investments.”
The Superintendent of Sustainability and Business of Itau Bank, Denise Hills, estimated that in the next five years the financial sector in Brazil should make significant progress in incorporating socio-environmental aspects.
For André Clark, CEO of Siemens, Brazil is moving towards becoming a powerhouse in energy generation. “The energy transition involves three things: technology, climate change and the consumer market. Brazil has been a protagonist in establishing milestones; we are at the center of these changes. The United States, China and Europe are making the transition because of coal. We are making the transition because of the use of land and water,” he compares.
Sustentável 2018 was sponsored by Santander, Itau, braskem, Philip Morris Brazil, iCS It is Arapyaú Institute, and had the support of Nespresso It is Europe Filters. The event will have its carbon emissions offset, through the purchase of carbon credits or the planting of trees, in partnership with Go Carbon Neutral.
