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No Brazilian carbon market soon /// Point Carbon

Brazil will not establish a domestic carbon market in the short term, an official said today.
Published: 27 May 2010


The creation of a cap-and-trade scheme in Brazil will require strong institutions and transparency, which will take time to develop, Thiago Mendes, a technical advisor at the country’s inter-ministerial commission on climate change, told the Carbon Expo conference in Cologne.

“To develop new institutions, registries and the internal bureaucracy is very complex and has to be verifiable at the international level,” he said.

“I would like to state that it is not for the short term,” he added, without specifying any particular timetable for a domestic emissions trading scheme.

On 6 May, Brazil’s O Estado de Sao Paulo newspaper reported details of a report commissioned by the finance ministry into how a carbon market could be used to target greenhouse gas emissions from the country’s power, transport, agribusiness and industrial sectors.

Mendes said that, in the short term, the UN’s clean development mechanism (CDM) will continue to be an asset for the country and could play a role in any future nationally appropriate mitigation actions (Namas).

Namas is a term coined at 2007’s Bali UN climate change conference and is written into last December’s Copenhagen accord.

It refers to voluntary actions that developing countries could take to reduce emissions under a future international climate change agreement.

Late last year, Brazilian President Luiz Inacio Lula da Silva signed a law that adopting the country’s international commitment to voluntarily cut domestic GHG emissions by between 36.1 and 38.9 per cent by 2020.
This reduction commitment was also part of Brazil’s submission at the start of the year to the Copenhagen accord, which also outlines potential areas for Nama activity in the country.
By Robin Lancaster – rla@pointcarbon.com
Cologne

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