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Market-based Instruments for Greenhouse Gas Mitigation in Brazil: Experiences and Prospects

Brazil has become an increasingly important participant in the discussion about climate change, combining an active role in climate diplomacy with credible domestic policy efforts. Market-based instruments have featured prominently in its domestic policy landscape, with carbon markets envisioned both at the federal and regional level. Aside from successful participation in the Clean Development Mechanism (CDM) and some progress in the creation of voluntary offset markets, however, the pathway towards a domestic carbon market has so far been fraught by delays and ongoing uncertainty. Still, Brazil can build on proven institutional structures, quantified emissions limitation targets, and new rules on the collection of emissions data and sectoral mitigation plans to establish robust market-based instruments. A carbon market can help leverage its vast mitigation potential to abate greenhouse gas emissions at sufficient scale while limiting the cost of compliance for domestic entities. Given its unique emissions profile, however, Brazil should not focus on becoming a net seller of carbon credits or allowances to foreign entities, but should instead harness the opportunity to create an ambitious, welldesigned market and thereby become a leader on climate change mitigation in Latin America.

The Federative Republic of Brazil is the fifth largest country in the world by area, just slightly smaller than the United States. In 2011, Brazil generated a Gross Domestic Product (GDP) of US$ 2.294 trillion (est.), with a real growth rate of 2.7 % despite the slowdown induced by the financial crisis. Overall, the Brazilian economy is booming, with highly developed sectors in services, agriculture, resources, and manufacturing. Major industries are textiles, shoes, chemicals, cement, lumber, iron ore, steel and machinery. Its political system is a democratic federal republic, with President Dilma Rousseff serving as the current head of state and government. Government authority is exercised in the Federal District, where Brasilia, seat of the federal government and national capital, is located, and in 26 states and 5,565 municipalities. The legislative branch is set up as a bicameral National Congress consisting of the Federal Senate with three elected members from each state and the Federal District, and the Chamber of Deputies with members elected by proportional vote. Its large territorial extension across tropical and subtropical climate zones affords Brazil a great variety of rainfall and temperature regimes, and one of the highest biodiversity rates in the world.

Copyright:	© Lexxion Verlagsgesellschaft mbH
Quelle:	Issue 4/2012 (Dezember 2012)
Seiten:	8
Preis:	€ 41,65
Autor:	Michael Mehling Dr. Sebastian Mielke
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