Study of the carbon market in Brazil 4 (2015)

AUTHOR:Lopes, Ludovino; Ricci, Tiago; Oliveira Santos, Rodolpho; Borma Chagas, Thiago; Galhano, Mayra; de Freitas Penteado, Luis Fernando; Courrol, Marina; Fernández, Mercedes

DATE:July, 2015

TOPICS: Carbon Market, Emission permits, mitigation, climate change

SUMMARY: The study reviews Brazilian state, federal and local regulations as well as voluntary regulations, to examine the compatibility of the same with a potential national or state carbon pre-compliance market. In front of the critics and key elements of a carbon market, the positive advances and deficiencies in the existing regulatory frame get characterized, as well as the possible challenges in the alignment of the state regulation after the generalization of a market in the federal level. The study concludes that a current norm doesn’t regulate a potential market, however they must observe elements like greenhouse gases reduction goals, sectorial plans and legal initiatives at a State level once the carbon asset market is designed. This document was prepared as a part of an effort of the Inter-American Development Bank and the Securities, Commodities and Futures Exchange for the development of the carbon market in Brasil. The study was coordinated by Maria Netto, Specialist in Financial Institutions; Carlos Ludena, Specialist in climate change (BID); and Guilherme Magalhães Fagundes, Environmental Products, Energy and Metals Manager