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Carbon Credit Markets, Climate Governance and Boards of Directors

Two significant events today on the 23rd. Congress IBGC:

  1. (great) Lecture “Climate governance and carbon market”, with Carlos Martins, Marco Antonio Fujihara and Nelmara Arbex

  2. Launch of the publication “Climate Governance in Brazil: Context and Challenges of the Boards of Directors”, by Chapter Zero Brazil and IBGC and organized by Maria Eugênia Buosi and Sérgio Nunes Muritiba

About the lecture:

  • Emitting sectors: first the carbon inventory, then decarbonization and finally the residual emissions offset

  • Energy transition: insufficient resources (recent UN finding). New financial arrangements. Carbon credits as collateral

  • Scope 4 (new): financed emissions (!). In other words, a challenge for banks and debtors

  • Regulated markets for carbon credits: limited (e.g. Brazilian RenovaBio). Kyoto Protocol, Paris Agreement and COP26 with basic document (16 pages). Lack details. COP27, elaborated article 6, implementation over the next few years. Meanwhile, voluntary market.

  • USD 1.5 billion in 2022: relatively liquid carbon market

  • Credit quality and integrity: point of attention. Additionality, traceability, avoidance of leakaga. Attribute incorporation. Positive list: nuclear, solar, wind.

  • COP27: due to current geopolitical issues, difficult consensus among the 190 countries. Attriction between competitors, in agriculture for example. “Rule book” still incomplete. And it will still take years to implement.

  • Brazil on the spotlight. Insufficient resources to seek more efficiency, for example, in an agriculture that is already quite efficient for several commodities. “Our carbon intensity is already low. We are the country of photosynthesis. And from an industry that is already “sensitive” to the environment”. Perhaps more space for reforestation, in a mixed system, natural rehabilitation, environment and income. And export truly green (industrial) products.

  • Final messages. In companies, work more with management and good execution. In two ways with governance. With strong advisory. Climate Governance. Directors must take fiduciary care with commitments and their feasibility. Listening to all stakeholders and paying attention to the evolution of the legal doctrine (ref. United States).

About the publication, 180+ pages, click below to access it (with short registration)


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“Nothing in life is to be feared, it is only to be understood. Now is the time to understand more, so that we may fear less.”

“I am among those who think that science has great beauty”

Madame Marie Curie (1867 - 1934) Chemist & physicist. French, born Polish.

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