Brazil Carbon Market – How Does it Work?

Brazil carbon market works voluntarily and without any tax incentive. Despite that, several bills are already being processed in Congress in search of legalization for this market. Meanwhile, companies and people are trying to find solutions to reduce the emission of greenhouse gas in the carbon market.

Companies are starting to understand that being worried about sustainability is good for the environment, helps the brand reputation be better, and attracts investors. Thus, it turns into an action plan that helps entrepreneurs grow. People are also set on understanding how to reduce their carbon footprint day by day.

The nature destruction the high level of carbon in the atmosphere is causing can’t be ignored. And, consequently, in our lives. This way, selling and buying carbon credit is only one more way to try to deal with this situation. In this post, we invite you to know more about Brazil carbon market. You will also understand how reducing CO2 emissions can help your company grow. 

In this post has:

• What is carbon market?
• How does Brazil Carbon Market work
• How to buy carbon in Brazil?
• Get to know Redda+

What is carbon market?

The carbon market is related to the negotiations of carbon credits. These credits usually are offered by companies that were able to reach their goals of reducing greenhouse effect gases. The buyers tend to be companies that couldn’t do it, turning it into a carbon emission compensation system.

The interesting part is that the companies that are able to reach their goal find a way to make money off of it. And, with the capital made from selling, they can invest in sustainability actions for themselves. It’s a way of showing commitment to preserving the environment. Be it by reducing greenhouse effect gases or by changing into sustainable habits.

One carbon credit is equivalent to a ton of carbon dioxide (CO2). This is the credit that is negotiated in the market. It is important to understand that other gases are also included. Negotiations also can happen between nations. In this case, agreements are organized between the countries.

Companies that invest in carbon compensation tend to reduce carbon emissions to zero. It happens by the actions applied by the company or by acquiring credits. This process leads the business to have a carbon-neutral seal. The programs in charge of it evaluate the companies to measure the ideal emission compensation. So, businesses and/or countries are directed to buy carbon credits that support environmental preservation projects.

Another way to enter the carbon market is, as a person, to calculate your carbon footprint. This way, you can transform into money how much gas you emitted and invest in an environmental organization.

The carbon credit concept came with the Kyoto Protocol, in 1997. It stipulated goals and objectives related to the reduction of greenhouse gas emissions in developed countries. In 2015, it was replaced by the Paris Agreement, and the carbon market was boosted.

In a way, it is a solution to help countries with difficulty to reach their goals.

Click here and learn more about what is carbon neutral.

How does Brazil Carbon Market work

In Brazil, the carbon credit market already works in companies that are willing to neutralize their carbon emission. It all happens voluntarily and with no tax incentive from the government. In this case, companies go through an evaluation to identify their emission level and how to reduce it. Besides collaborating on the well-being of nature, companies also get closer to the ESG agenda.

The ESG (Environmental, Social and Governance) sustainable seal invites companies to narrow their commitments to these practices. This way, companies position themselves in the market alongside socioenvironmental worries and are more welcomed by investors. Finally, it adds value to the clients that are, more and more, consuming sustainable brands.

In Brazil, there is Bill 528/21 which aims to regulate the purchase and sale of carbon credits in the country. The proposal is that the negotiations be carried out through the implementation of the Brazilian Emission Reduction Market (MBRE in Portuguese). The focus is on reducing greenhouse gas emissions and is still pending in Congress.

It waits that these regulations help even more identifying sustainable projects. Such as projects that use the REDD (Reducing emissions from deforestation and forest degradation) mechanisms and REDD+ 

Click here to learn more details about what is REDD.

How to buy carbon in Brazil?

Buying carbon in Brazil can be acomplished by people and businesses. The credits can be purchased in websites specialized in rediretiong this money to environmental improvements. There are companies that help preserving the Amazon, some others plant trees in the Atlantic Jungle. It is still possible to find organizations that redirect carbon sales to other sustainable development actions.

First make an inventory of your emissions

The first step to taking part in Brazil Carbon Market is needing to make an inventory of the greenhouse effect gas emissions in your company. Or, in the case of people, calculate your carbon footprint. This step is essential to identify which areas are the most problematic ones and emitting more gas. It is also essential to know how you can reduce it. Besides, it will be possible to observe what CO₂ equivalence will be needed to offset the carbon that will not be reduced.

This self-evaluation tends to be full of revelations for companies. They can use it to understand more precisely what the company’s positive and negative impact on the environment is. It is time to think of innovative, practical solutions and even to invest in actions that can reduce costs in the long term.

Some companies provide consultancy on carbon emissions and offsetting. For example, MOSS, Sustainable Carbon and Eccaplan.

Identify how much carbon you need to buy

When identifying the amount of greenhouse gas emissions your company is responsible for, make an evaluation of the solutions. It is time to think with your team about which situations can be transformed in order to reduce CO₂. And then see which ones are more complex.

These data are important for you to carry out the equivalence process, that is, to identify the amount in reais you emit of carbon. It is a way of monetizing emissions so that the carbon credit can be purchased.

Choose to buy from engaged organizations and projects

Now that you know the real value of your carbon emissions, you need to find an organization with sustainable projects. The money will be donated to encourage the continuity of sustainable development projects. Some organizations are supported by REDD+ mechanisms and even the 17 UN Sustainable Development Goals. This is the case of Redda+, which develops actions in the Amazon region, seeking carbon offsetting through socio-environmental projects.

Keep investing in CO₂ reduction

Despite how easy it is to buy and sell carbon credits, it is necessary to continue with solutions that actually reduce CO₂. Therefore, keep looking for answers and alternatives that help you to reduce the emissions of polluting gases into the atmosphere.

Give preference to appliances with better efficiency and lower energy consumption. Invest in the selective collection of solid waste and, if possible, reduce the use of individual transport. You can also avoid unnecessary printing, reduce plastic in everyday life, and have a sustainable conscience when buying.

All small actions collaborate to reduce CO₂, it’s a way to help the planet get back on its feet. We cannot forget all the negative consequences of global warming, and if we don’t act, it will only get worse.

Click here and learn more about What is the difference between solar heating and the greenhouse effect?

Find out how Redda+ can help you

Redda+ is an organization willing to find a sustainable balance between the forest and its inhabitants. To this end, it develops projects supported by the UN’s 17 Sustainable Development Goals, in addition to using REDD mechanisms. The actions are implemented in the Amazon regions, aiming at economic, social, and environmental growth. Redda+ believes that the three pillars are essential for sustainable development that makes a difference for everyone.

In addition, Redda+ is concerned with carrying out projects that help compensate for excessive carbon emissions. Therefore, it invests in actions that collaborate with the insertion of oxygen into the atmosphere, which can be through sustainable management. Or investment in environmental education so that traditional communities can use nature wisely.

Currently, one of the fully functioning Redda+ projects takes place in Portel, Pará. The work aims to offer intelligent and sustainable resources for traditional peoples and riverside people. Click here and join this movement.