In an interview with CNN sustainabilityGhawrani Osorio, an environmental policy and economy teacher at FGV, talked about the carbon market. When asked about Brazil’s progress, the expert stated that “compared to other countries, Brazil is the best student in the class when we talk about sustainability.”
For Guarany, the country still needs a climate schedule and a tools package so that Brazil can use its entire potential in the carbon market, which is still new in the country.
In December 2024, President Louise Insio Lula da Silva imposed the law that creates the Brazilian greenhouse gas emissions system (SBCE). This measure creates an organized carbon market in the country and sets boundaries for greenhouse gas emissions.
“The role of the carbon market in Brazil is to help the country implement the goals that Brazil promised, and the goals of release. This organized market has been approved and will have a gradual application. Therefore, we will take 4 to 5 years until this market works,” the professor explained.
The organized market x voluntary
Inside the carbon market, there are two organizationals: organizers and voluntary. Professor Ghawrani Osorio explained the team in an interview with CNN.
“The organized market is a means of carbon pricing, you can pricing CO₂ or by honoring, or through an organized market. The organization is born from a law, from legislation. So it has a legal request to enter this market.”
Guarany Osorio also explains that the companies in the regulatory market should be within this market. “They will have a mandatory limit, if you don’t meet this, this limit will be punished with a fine, for example.”
On the other hand, on the volunteer market, companies buy assets when they want, according to their business strategies. “The company that has a voluntary goal in Brazil, it can use carbon credit, for example. It is important for the company to have internal emissions procedures to change it, and make technological transformations in its operations, then use carbon credit compensation in the volunteer market as a small climatic strategy,” said Ghawrani Oreo.
