From 2015 to 2017, global Brazilian 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, which is equivalent to 27% of the total emissions to be reduced according to the Brazilian Nationally Determined Contribution (NDC) for 2025 (787 million tCO2e). The information was presented this Thursday (13/12) by Ana Carolina Szklo, director of Institutional Relations at 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 analyzing exclusively Brazilian companies or those that have exclusive data on emissions in the country, there was a drop in 2016 of 33% compared to the previous year. In 2017, the reduction in emissions was 1% compared to 2016. The economic crisis was the main factor that resulted in this performance, but despite industry divestments in the period, the study shows the private sector's engagement in development and adoption of low carbon technologies and processes.
“The results are positive because they show the potential of technological innovation, in addition to the commitment and leading role of a significant portion of Brazilian companies in meeting the Brazilian goal in the Paris Agreement. However, if these investments are not continued, part of this gain could be lost in a scenario of resumption of economic growth”, observes Marina Grossi, president of CEBDS.
More ambition
During the presentation, Ana Carolina also highlighted the need for companies to expand targets in terms of emissions volume and deadline. Of the total number of Brazilian companies analyzed in the study, almost 90% has short-term goals, that is, until 2025. Few, however, have already established medium and long-term goals, extending until 2030 and 2050, respectively.
The study “Low Carbon Development Strategies for the Long Term”, carried out last year by CEBDS in partnership with iCS, points out concrete actions that can be implemented in Brazil by 2050, ranging from disruptive technologies, which will transform entire sectors of economy, even financial instruments that influence the decision between not issuing or paying to issue to the issuers themselves.
The new CEBDS study presented at COP24 revealed that 57% of the companies analyzed already use an internal carbon price between US$ 1.79 and US$ 175/tCO2e, with the average value being US$ 31.46. Furthermore, the majority of the remaining companies intend to use the internal price in the very short term, within two years.
“The study showed that the internal carbon prices of Brazilian companies have a considerably lower cost than in other countries, which can reach US$ 909/tCO2e. It is possible to reduce GHG emissions at lower costs in Brazil than in other countries. This shows our potential to become global leaders in the carbon market”, says Ana Carolina Szklo, director of Institutional Relations at CEBDS.
