Brazil’s vice president Geraldo Alckmin said the carbon market could surge by 5% the GDP of the country and bring in USD 120 billion by 2030. Alckmin, who’s also the minister of Development, Industry, Trade and Services, spoke about the topic at an event in the National Confederation of Industry (CNI), Brazil’s top industry lobby, on June 20.
Alckmin added there is no deadline for the government to present a proposal for regulating the carbon market in Brazil. He said the political group is evaluating the best way to submit the proposal to the National Congress, whether it’s via a new bill or additions to bills currently being contemplated by members of Congress.
According to the Ministry, the government and CNI argue for the cap-and-trade system, where a central authority allocates a limited number of permits that allow a discharge of a specific quantity of greenhouse gas emissions over a set time period.
Operators that issue less than their permit can sell the saved quantity on the regulated market. Operators that exceed their permit can compensate for it by purchasing the difference on the regulated market — or partially on the voluntary market.
The regulation will allow both the government and the productive sector to work for adapting the country to the carbon emission reduction agenda. Brazil aims at cutting its emissions by 50% by 2030 and net zero by 2050.