By Robson Braga de Andrade*
Increasing frequency of extreme events – such as cold waves and heatwaves, droughts, floods and storms – has intensified concern about global climate change. The significant economic and social losses caused by natural disasters require action to prevent damage and reduce the effects of the climate crisis. Moreover, these climate events challenge countries to urgently put efficient emission reduction strategies in place.
Such actions are critical to complying with the Paris Agreement and to a more sustainable world as discussed at the United Nations Conference on Climate Change (COP27) in Egypt. CNI took part in COP27 negotiations, since industry plays a crucial role in the response to global warming.
The fact is: we will not be able to halt escalating global temperatures without establishing a low carbon economy and embracing cleaner technologies and better production processes. Thus, Brazilian industry has been consistently investing in programs that are capable of reducing emissions in accordance with the targets that were agreed upon.
Brazil has committed to cut carbon emissions 37% by 2025, and 50% by 2030, based on 2005 levels. To do so, CNI has developed a strategy based on four pillars of sustainability: energy transition, a carbon market, circular economy, and forest conservation. We are engaging the industrial sector and liaising with the government to make sure these goals are met.
The world needs to change the way it consumes energy by moving from an energy mix based on fossil fuels to one that is firmly anchored in renewable sources. Brazil is a frontrunner in this process, since it already relies on a significant share of these sources and has been expanding its use of wind, solar and bioenergy sources.
Brazil’s industrial companies have been increasingly investing in energy efficiency projects, using cutting-edge technology; in changes in the management of inputs; in adjustments to production; and in treatment of waste. Between 2006 and 2016, for instance, Brazil’s chemical industry has made a 44% cut in process emissions.
The establishment of a global carbon market will help countries reduce their emissions. We’re aware that the success of this initiative will depend on the paths to be taken by the international community based on what was approved in Glasgow last year – and on how Brazil will organize its institutional framework to implement it. In addition to institutional arrangements, several legal aspects remain to be regulated.
At the domestic level, we believe that a regulated market is the best approach to pricing. Rules should encourage innovation, legal security and competitiveness without increasing the tax burden.
We are in favor of a cap-and-trade system, in which companies that have lower emissions are allowed to sell the surplus to those that emit more, encouraging investment in green technologies.
Circular economy is expected to sustain the flow of natural resources by avoiding waste and reducing costs. Brazil could be a circular economy powerhouse, since it possesses clear advantages – such as the world’s greatest biodiversity and an extremely varied industrial base. However, public and governance policies are necessary to promote this new vision.
Forest conservation is the strategy’s fourth pillar of sustainability towards a low carbon economy. Altogether, 58% of Brazil’s lands are covered by forests. Fighting illegal deforestation and natural and criminal wildfires is critical to reducing carbon emissions and curbing global warming. Based on these pillars of sustainability, Brazil will doubtless play a prominent role in the transition to a low-carbon economy.
By Robson Braga de Andrade, entrepreneur and President of Brazil’s National Industry Confederation (CNI)
