Home BusinessMarket Brazil govt hopes for swift lower house approval of carbon market regulation

Brazil govt hopes for swift lower house approval of carbon market regulation

by Clarence Jones

Brazil’s government is looking to fast-track the approval of a bill that will regulate the carbon market, according to Brazil’s Minister of Institutional Relations, Alexandre Padilha. The bill received approval from the Senate’s Environmental Committee and will now be sent to the lower house of Congress.

The bill is an important part of President Luiz Inacio Lula da Silva’s ecological transformation plan and aims to establish a carbon market in Brazil. The goal is to reduce greenhouse gas emissions by imposing a cap on companies emitting more than 25,000 tons of carbon dioxide equivalent annually. Initially, this limit was expected to primarily affect oil and gas firms, as well as meatpackers, and steel, cement, and aluminum producers.

Padilha expressed optimism about the bill’s approval in the lower house and stated that the government is working to ensure it is voted on as soon as possible. However, he did not provide a specific timeline.

One notable aspect of the bill is the exclusion of agribusiness activities from the proposed regulations. Padilha argued that no country worldwide has imposed rules on this sector and that Brazil may consider it at a later stage.

Senator Leila Barros, the sponsor of the bill in the Senate, made some changes to the text by incorporating government suggestions and excluding others. The goal was to reach a consensus with fellow senators and alleviate concerns from the farming and livestock industry.

The approval of the bill is seen as a significant step in Brazil’s efforts to tackle climate change and transition to a more sustainable economy. It would establish a framework for carbon trading, incentivizing companies to reduce emissions and invest in cleaner technologies.

The government’s commitment to expediting the bill’s approval demonstrates its determination to address climate change and meet its international climate commitments. It aligns with global efforts to mitigate the impact of greenhouse gas emissions and transition to a low-carbon economy.

In conclusion, with the Senate’s approval, Brazil’s government aims to push forward with the regulation of the carbon market by expediting the approval of the bill in the lower house of Congress. This step is crucial for Brazil to achieve its environmental goals and transition to a more sustainable economy.

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