Rio de Janeiro, September 18, 2018. Following a series of dialogues between the private sector and the government led by the Brazilian Business Council for Sustainable Development, the Ministry of Industry, Foreign Trade and Services published an ordinance in the Official Gazette on Tuesday (18) establishing the creation of the Low Carbon Industry Technical Committee. Composed of representatives from 15 organizations from the business sector and government, the committee will promote coordination between public and private agencies and entities to implement, monitor and review public policies, initiatives and projects that stimulate the transition to the Low Carbon Industry in Brazil.
Marina Grossi, president of CEBDS, commented on the achievement: “We are working tirelessly with the Government to advance the low-carbon economy. The creation of this committee signals the development of a cleaner energy matrix, with more renewable sources, and is a positive response to the efforts of the business sector to regulate a carbon market with clear, stable and transparent rules.”
The following entities and bodies will participate in the committee: Ministry of Industry, Foreign Trade and Services, Brazilian Business Council for Sustainable Development, National Confederation of Industry, Brazilian Chemical Industry Association, Brazilian Aluminum Industry Association, Brazilian Tree Industry, National Cement Industry Union, Brazilian Portland Cement Association, Brazilian Glass Industry Association, Brazilian Steel Institute, Federation of Industries of the State of São Paulo, Federation of Industries of the State of Rio de Janeiro, Federation of Industries of the State of Minas Gerais, Brazilian Mining Institute, Executive Secretariat of the United Nations Global Compact Brazil Network.
The committee's actions and proposals must be in synergy with public policies for industrial development and foreign trade and with the guidelines of the Interministerial Committee on Climate Change.
Climate change
The agreement signed in Paris three years ago by 195 nations, including Brazil, requires a commitment to reduce greenhouse gas (GHG) emissions by 37% by 2025. However, despite Brazil's natural competitive advantages over other countries, our emissions grew by 12.6% in 2015 and 2016. For Marina Grossi, the creation of a carbon market has great potential to reverse this situation.
“In the absence of financial instruments, the environmental and socioeconomic costs associated with greenhouse gas (GHG) emissions are not captured by the market. With carbon pricing, there is a motivation for companies and consumers to reduce their emissions and for mitigation to follow the path of lowest aggregate cost for the economy,” he explains.
In July of this year, Marina Grossi met with the Minister of Finance, Eduardo Guardia, to present the study “Carbon Pricing in Industry: A Strategic Initiative”, commissioned by Professor Ronaldo Seroa da Motta, from the Department of Economics at the State University of Rio de Janeiro. The main points of this proposal foresee a gradual process, with an initial commitment phase of five years, free licenses at the beginning and an equilibrium price ceiling no higher than US$$10 per ton of CO2.
CEBDS Agenda for a Sustainable Country
With an eye on the next government, CEBDS met with its member companies to draft a document with 10 proposals for Brazil's economic, environmental and social sustainability. The proposals cover topics in line with the UN's Sustainable Development Goals (SDGs) and prioritize actions that combine sustainability and efficiency, making the economy more competitive.
The document has already been delivered to Geraldo Alckmin (PSDB), Guilherme Boulos (PSOL), Ciro Gomes (PDT), Marina Silva (Rede) and João Amoêdo (NOVO) and is available for download on the CEBDS website.
