São Paulo – Financing for sustainable actions will be one of the pivotal subjects of the United Nations Conference on Climate Change (UNFCCC COP27), informed the executive manager for Environment and Sustainability of the Brazilian National Confederation of Industry (CNI), Davi Bomtempo, who will participate in the event in Egypt. Reduction of emissions, climate adaptation, regulation of the carbon market, and transparency of processes are the other points the CNI delegation will follow at COP27, to take place from November 6 to 18th in Sharm El Sheikh.
Financing is considered a means of implementing the climate change mitigation and adaptation plan. According to the executive, Brazil has great potential to attract these new investments, as it is home to renewable energy sources and vast biodiversity. The discussion on a better redistribution of investments among countries, especially developing ones, will be central to this schedule.
“The issue of financing is always addressed at the COPs, but in a way, it is difficult to contemplate the USD 100 billion a year funding with which developed countries were expected to finance this transition to developing countries,” said Bomtempo.
According to him, a lot has been discussed on the subject, as it is a fundamental matter to economically encourage the energy transition in those countries that do not have the conditions. “There is an international capital flow of around USD 600 billion a year; about 4.5% goes to Latin America and the Caribbean, to Brazil, even less. This has also been guiding our work: How to provide these companies with access to this type of resource? How can a Brazilian entrepreneur access these resources? So we developed a step-by-step guide, with what companies should consider accessing this resource to finance their transition,” said Bomtempo on collective and public financing.
At COP27, the CNI will also launch a guide to financing from private funds for Brazilian companies, informing which criteria they need to meet to receive. “We know each fund requires a type of information, but the idea is to show this resource exists for entrepreneurs and provide a step-by-step guide for them to access it,” he said.
Sustainable market
“The CNI has been working to identify cooperation possibilities and opportunities for the industrial sector at the COPs,” said Bomtempo. The CNI has participated in all summits. “Today, the market has new regulations, laws, and norms companies have to follow both domestically and if they want to internationalize,” said the executive, on sustainability, in an interview with ANBA.
“Another point I would call attention to is the consumer profile; now, they want to know what they are consuming, be it a product or a service. They want to know how much emissions it generates, if it has an energy and water efficiency program, if it has a social impact, if waste is appropriately disposed of, or if it employs circular economy practices. So altogether, whether the regulatory reputation or customer service part, it has been guiding the planning and performance of the companies’ initiatives,” said Bomtempo.
Brazil in the carbon market
Brazil has advantages, said Bomtempo, in terms of energy and power matrix. “We are very competitive compared to the OECD average, we are in a position many countries will take many years to achieve, and we know energy is a vital input for production. So theoretically, if you already have clean energy, your product will be greener,” he said. The OECD is the Organization for Economic Co-operation and Development, composed of over 30 countries.
The executive manager stated Brazil has been at the forefront, including in biofuels, since the 1970s. “Brazil is one of the few countries where you can find ethanol or biodiesel at gas stations, and that puts us in the second position of the largest biofuel producer, just behind the United States,” he said.
In terms of biodiversity, Brazil also stands out. “We are a forest country with almost 60% coverage, and this brings several alternatives for the use of these biological resources, fostering the cosmetics, pharmaceuticals, and food industries based on biodiversity and also opening up a contribution from the private sector in the fight against illegal deforestation. This part of forest conservation is vital,” said the interviewee.
Concerning water, Brazil has a large freshwater reserve, and with that, it is among the major players in an international comparison, said Bomtempo.
Four pillars
The CNI aims to gain competitiveness for the Brazilian industry with sustainability and for Brazil to advance in the transition to a low carbon economy; the confederation defined four strategic pillars, which are energy transition, carbon market, circular economy, and forest conservation.
According to Bomtempo, energy efficiency means using little resources and having significant energy savings, and the CNI has public and private partners on this front of the energy transition. “We have a robust plan for new technologies within this pillar, offshore wind energy is being regulated in Brazil, on the coastlines of the Northeast states, Rio de Janeiro, and Rio Grande do Sul. We also have several ventures with sustainable hydrogen and focus on green hydrogen as a fuel to make industrial production increasingly cleaner,” he said. The executive stated the whole world has been looking for alternative energy to help make this transition to low carbon, and hydrogen appears as a great solution.
The carbon market is another priority subject for the CNI. “We are working on a bill in the [Brazilian National] Congress. The central inquiry is to implement a regulated carbon market system connected to other international markets,” he said. According to Bomtempo, to have a regulation, it is necessary to bring elements of governance and methodology. “You can’t sell the carbon credit if you don’t have a standard for measuring it,” he said.
The CNI has been working on the circular economy agenda not only in innovation and eco-design but also in recycling, reuse, and remanufacturing, according to Bomtempo. “And finally, at the nationwide level, forest conservation and the bioeconomy are central pillars, bringing opportunities to face illegal deforestation,” he said.
CNI at COP27
November 15 and 16 will be the most critical days for the CNI at COP27. On the 16, a significant event will occur at the Brazil pavilion with a full day of schedule focused on the industrial sector, with panels on the themes mentioned above, with energy transition and the carbon market, in which Brazilian companies will share their proposals.
On the 15, the event will be with the productive sector and in partnership with the Arab Brazilian Chamber of Commerce (ABCC) and other partners. “These are opportunities in which we are developing rapprochements and with our eyes on the next COP, to take place in Dubai,” said the executive.
To learn more about the CNI’s work in sustainability, visit the Brazilian Sustainable Industry website and the Industry Portal.
Translated by Elúsio Brasileiro
