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Significance
While this could help decarbonise the country’s industry and attract investments in offsetting projects, the exclusion of the agriculture and livestock sector from the cap-and-trade system has caused considerable controversy.
Impacts
Recent ‘missteps’ in environment-related areas, such as a decision to join OPEC+, have dented Lula’s global ‘green’ image.
The government will hope the carbon market initiative helps re-focus international attention on environmental progress.
International perceptions will be key as Brazil has made sustainability a key theme of its 2024 G20 presidency and the hosting of COP30.
Keywords:
Brazil,
LA/C,
economy,
politics,
agriculture,
climate,
derivatives,
environment,
legislation,
natural resources,
regulation,
pollution,
Food & Tobacco,
Paper & Forestry
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2024
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