With G20 next year and the UN Climate Conference, COP30, in Belém in 2025, the country will have a great opportunity to reinforce its “soft power” in the environmental field

By Marina Grossi*

Brazil is at a unique and at the same time decisive moment in its history, and, depending on the steps it takes by the end of the decade, it will be able to reinvent its economy and assume an unprecedented role on the global stage. Starting with the G20 presidency next year and going through the UN Climate Conference, COP30, in Belém in 2025, the country will have a great opportunity to reinforce its “soft power” in issues related to sustainable development. And, for the first time, we are seeing the transversality of this agenda gain ground in various levels of government.

Over the last two months, the business sector has been following the definitions of the federal government's Ecological Transition Plan, which has been called the “Green Package” and intends to place on the agenda economic measures that should position Brazil on the path to low carbon economy with social inclusion. This package, which is being led by the Ministry of Finance, is scheduled to be launched in the second half of the year and should bring at its core measures that have long been defended by the Brazilian Business Council for Sustainable Development (CEBDS). One of the most important points is the creation of a regulated carbon market until COP28, in Dubai, at the end of the year. The Treasury plan also provides incentives for the issuance of green bonds and the classification of activities according to their environmental and climate impact, the so-called green taxonomy.

The Brazilian business sector believes it has a lot to contribute by adopting measures that encourage the country's sustainable development. In this sense, the CEBDS Council of Leaders, formed by CEOs of large groups, met with the Minister of Finance, Fernando Haddad, on June 16 to discuss priorities in the adoption of this agenda, expressed in a letter delivered to the minister. We take suggestions in the field of bioeconomy, carbon market, basic sanitation, energy, Amazon forest, infrastructure and economic incentives that can definitely put Brazil on the path to a low-carbon economy with social inclusion. Previously, the Council had already reinforced these points in a meeting with the vice-president and minister of Development, Industry, Commerce and Services, Geraldo Alckmin, and with the minister of Environment and Climate Change, Marina Silva.

The action resonates when we look at the main obstacles that companies face in their journeys to reduce greenhouse gas emissions and advance low-carbon strategies. Discovering where the calluses tighten motivated CEBDS to launch a study in partnership with the consultancy BCG, which involved more than 50 companies from the most varied sectors – agribusiness, energy, mining, transport and sanitation, among others. The survey, unprecedented in Brazil, points out that the main difficulties faced by companies on the net zero journey are linked to regulatory uncertainties (64% of those interviewed), supplier engagement (49%) and the absence of sectoral references, for 38%.

Even pointing out these uncertainties, the fact is that the Brazilian business sector is convinced that the future will be low carbon. Proof of this is that 90% of the companies interviewed calculate their greenhouse gas emissions and 79% have a clear strategy to mitigate their carbon footprint, decisions that come from leadership and also from market pressure, especially from investors. The study gives some clues about what Brazilian companies think about the need for public policies to give that push in the transition to decarbonization of business. For 97% of the interviewees, economic regulation is the most relevant, followed by sectoral regulatory programs and frameworks, for 92%.

“The combination of business strategies and a regulatory environment that is safe for investments seems to be ideal for the sustainable development agenda to advance even further in Brazil.“

We have a business vanguard that, despite the difficulties mapped out by the CEBDS study with BCG, has a vision of the future and an interest in constructive dialogue with governments on this agenda. These are opportunities for Brazil to reinforce its leading role, but it is essential to act now, as this window of opportunity is unique and short. The world has until 2030 to definitively put itself on the path to an economy with low carbon emissions, at the risk of further suffering the drastic consequences of the worst climate change scenarios. We have the opportunity to become leaders in the new geopolitics and, at the same time, leverage our environmental assets to reduce our social liabilities.

* Marina Grossi is president of CEBDS (Brazilian Business Council for Sustainable Development), an entity with more than 110 associated companies whose combined revenue is equivalent to almost 50% of Brazilian GDP