After reading and hearing a lot, meanwhile taking action … I really want to share my modest thoughts from Brazil.
First some highlights from another authors:
1. According to a study leading by Bain & Company from Brazil with 30 CEOs of companies located in the country:
· “Consumers express levels of concern that have not yet translated into consumption choices or sufficient willingness to pay for sustainable products, to preserve current margins.
· Resource efficiency is the main shortcut to “making the numbers work” in the short term.
· Engaging suppliers and accelerating this mobilization can be a competitive advantage in the short to medium term.
· Shedding light on the “hidden costs and risks” of not adopting sustainability practices helps rebalance the value equations of projects and accelerates more disruptive decisions. In this sense, implementing tools to measure the environmental and social costs of actions and monetizing them is crucial, and far from trivial”.
2. In the article “The economic commitment of climate change”, published online last April 17th 2024, by Nature, they analyzed:
“the world economy is committed to an income reduction of 19% within the next 26 years independent of future emission choices. They assessed the extent of economic damage from climate change to which the world is already committed by historical emissions and socio-economic inertia (the range of future emission scenarios that are considered socio-economically plausible)”.
Income reductions will be different around the world, and OF COURSE, Latin America, Africa and some regions of Asia will suffer more. The Article has 20 pages, and there are essential concepts to drive decision-making, I brought the dorsal spine of the analysis, and it help me to join with my experience and thoughts as Brazilian and Environmental Engineer.
3. Another article, ALL IN ON CLIMATE: THE ROLE OF CARBON CREDITS IN CORPORATE CLIMATE STRATEGIES, published by Ecosystem Marketplace on The world Bank website, last October 10th, 2023, analysis from their own VCM dataset and corporate disclosures by 7,415 organizations, they “offer a series of comparative analyses across a variety of metrics for corporate action on climate sustainability, aligned with corporate best practice of:
· first measuring greenhouse gas (GHG) emissions;
· then taking steps to reduce and avoid direct and indirect emissions on a target-based pathway;
· and finally buying carbon credits to address unavoidable emissions and those beyond the value chain.
Almost all reports about carbon market data show that the participation in the VCM is a signal that a company is already addressing climate change in their direct operations and throughout their value chains. Companies engaged in the VCM outperform their peers in accelerated climate action. VCM buyers are also 1.3 times more likely to have supplier engagement strategies and spent 3 times more on emissions reductions activities than the typical non-buyer.”
Based on the articles, we could think about “hidden costs and risks” as our capacity to provide quality of life to both the current and future generations through an economic model capable of balancing this quality of life worldwide. We haven’t been successful in achieving this balance; it’s a fact. The current decision-making model demonstrates and signals that high social and environmental issues in one region can cause significant damage to another. Remember the study: a projected income reduction of 19% worldwide within the next 26 years. The denial of “hidden costs and risks,” particularly the social and environmental impacts and costs accumulated over decades, raises the question: who will recognize and consider these issues in accountability? Many are attempting to do so, but we need more.
In this point, I want to remember the principal message of Biofix Group CEO, Ana Milena Plata, in the last Climate Week Miami: “Conservation Without Compensation is Just Conversation”. It is not only about emissions reduction, but also about climate justice, action, and impacts on the whole world.
After this introduction, finally, my modest thoughts:
As our world grapples with the urgent need to address climate change, it’s imperative to utilize every available avenue for MITIGATION and ADAPTATION. One of the most promising mechanisms in this regard is the carbon market, a dynamic platform that not only incentivizes emission reductions but also provides a powerful impetus for nature-based solutions.
THERE IS NO ONE SOLUTION, excuse me for express in my language, “NÃO EXISTE UMA BALA DE PRATA”. But, in this context and alongside initiatives around circular and bioeconomy, renewable energy, ocean protection against plastic and pollution, and others, it is important to remember that Nature-based solutions offer a multitude of benefits beyond carbon sequestration. They encompass a range of strategies, from conservation to sustainable land management and ecosystem restoration. These initiatives not only capture carbon dioxide from the atmosphere but also enhance biodiversity, improve water quality, and bolster resilience to climate impacts such as floods and droughts.
VCM is not compulsory, but it is an excellent option for those who want to contribute to climate change damages, especially for individuals or companies who want to invest in Brazil or depend on Brazilian products.
For countries like Brazil, endowed with vast and diverse ecosystems, nature-based solutions hold particular significance. The flying river formed over the Amazon, responsible for hydric security to populations and large agriculture in Brazil, play a crucial role in regulating regional and global weather patterns. Restoring Atlantic Forest and Brazilian Savanna is essential to support the climate changes events like dry, floods and landslide. Preserving and restoring these invaluable ecosystems is not only a matter of national importance but also a global imperative.
The carbon market plays a pivotal role in DRIVING INVESTIMENT into nature-based solutions in Brazil. By assigning economic value to carbon sequestration and emission reductions, the market incentivizes businesses, governments, and individuals to invest in projects that protect and restore Brazil’s natural ecosystems against activities and practices which have been pressuring our region, some illegal activities. This not only helps to mitigate climate change but also generates employment, supports rural livelihoods, and promotes sustainable development.
Moreover, nature-based solutions offer Brazil a unique (and OLD) opportunity “to reconcile economic growth with environmental conservation”. By embracing sustainable land management practices, Brazil can harness its abundant natural resources while safeguarding the long-term health of its ecosystems. The cost This, in turn, can enhance the country’s resilience to climate change, reduce deforestation, and promote biodiversity conservation.
Critics may argue that carbon markets are prone to weaknesses and inefficiencies, and indeed, robust governance mechanisms and technology are essential to ensure transparency, integrity, and accountability. However, these challenges are not insurmountable and have already been driven by a huge scientific international community. Through rigorous standards, independent verification, and continuous improvement and tools, the whole market has been enhanced the effectiveness and credibility of carbon markets in Brazil as a tool for CLIMATE ACTION.
Furthermore, it’s crucial for Brazil to leverage international partnerships and cooperation to maximize the impact of nature-based solutions. Meanwhile, promoting trusting environmental and engaging private sector as well can amplify its efforts to address and unlocking new opportunities for sustainable development, generating a real impact on climate change.
In conclusion, the carbon market represents a powerful mechanism for scaling up nature-based solutions and accelerating our collective response to climate change, particularly for countries like Brazil with rich natural capital. By harnessing the forces of supply and demand, innovation, and collaboration, Brazil can lead the way in demonstrating the transformative potential of nature-based solutions on a global scale. Now is the time to embrace the carbon market as one of the keys drivers of climate action and pave the way towards a more resilient and prosperous future for Brazil and the planet.
I can’t value a spectator who just offers criticism; I truly encourage and appreciate those who have been acting, moving forward, making changes, improving, giving value to each initiative. What are you really trying to?
Written by Cristiane V. Leme