Brazilian companies invested US $ 85.8 billion to reduce emissions, says CEBDS´s study

From 2015 to 2017, Brazilian global companies invested more than US$ 85 billion in 1.340 projects aimed at reducing GHG emissions. Most of them involved energy efficiency technologies, process optimization and the use of low carbon energy sources. Together, these projects contributed to a reduction of 217.9 million tCO2e, equivalent to 27% of total emissions to be reduced, considering the Brazilian National Contribution to 2025 (787 million tCO2e). The information was presented on 13 december 2018 by Ana Carolina Szklo, director of institutional relations of the Brazilian Business Council for Sustainable Development (CEBDS) during COP24, in Poland.

The study How companies have been contributing to the Paris Agreement” also showed that, when only national companies are analyzed, the fall in emissions in 2016 was 33% compared to the previous year. In 2017, the reduction was 1% compared to 2016. The economic crisis was considered a point of attention in the study, but despite the industry’s divestments in the period, the study shows the engagement of the private sector in the development and adoption of technologies and low carbon processes.

“The results are positive because they show the potential of technological innovation, the commitment and protagonism of a significant portion of Brazilian companies in fulfilling the Brazilian goal in the Paris Agreement. But if there is no continuity of these investments, part of that gain may be lost in a scenario of resumption of economic growth, “says Marina Grossi, president of CEBDS.

More ambition

During the presentation, Ana Carolina also pointed out the need for companies to increase term and emissions ´s goals. Of all the Brazilian companies analyzed by the study, almost 90% have short-term goals – until 2025. Few of them, however, have already set medium- and long-term goals, extending to 2030 and 2050, respectively.

The study “Low Carbon Long-Term Development Strategies” carried out last year by CEBDS in partnership with the ICS – Climate and Society Institute – indicates concrete actions that can be implemented in Brazil until 2050, ranging from disruptive technologies that will transform entire sectors of the economy, to financial instruments that influence the decision between not generating emissions or paying to generate emissions.

In this new study, CEBDS revealed that 57% of the companies analyzed already use a domestic carbon price between US $ 1.79 and US $ 175 / tCO2e, with an average value of US $ 31.46. In addition, the rest of the companies, in the majority, intends to use the domestic price in the very short term, within two years.

“The study showed that Brazilian companies domestic carbon prices are considerably lower than in other countries, which could reach US $ 909 / tCO2e. It is possible to reduce GHG emissions at lower costs in Brazil than in other countries, which reveals our potential to become global leaders in the carbon market”, says Ana Carolina Szklo,  director of institutional relations of CEBDS.