Brazil’s proposed carbon pricing agenda aims to reduce greenhouse gas emissions and incentivize low-carbon investments in the country for the benefit of public and private stakeholders.
Since 2013, there has been rapid growth in Brazilian corporate adoption and support for carbon pricing as a mechanism to prepare for a climate-constrained future. Some companies have used internal carbon pricing as a means to identify new opportunities. In addition, 39 Brazilian companies are participating in an emissions trading system simulation to explore suitable approaches for a carbon market in Brazil. This innovative simulation—managed by the Center for Sustainability Studies’ Business for Climate Platform (EPC)—envisions co-building and disseminating knowledge with the private sector about how could be developed and run a potential cap-and-trade ETS in Brazil, establishing a permanent communication channel between businesses, academia, and the public sector, and strengthening ties with other carbon pricing jurisdictions in South America.
Itaú Unibanco, CPFL, and Vale are among the participating businesses in support of a carbon pricing approach that promotes sound economic growth. Together with a growing group of Brazilian companies, they are considering the most appropriate carbon pricing instruments for the country, and aim to start a conversation with other stakeholders about the best path forward.