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EXTRA Edition. São Paulo Climate Week 2026. Two events covered by CarbonCreditMarkets: AMCHAM and MASP
- Art Dam
- 15 hours ago
- 7 min read
Friday, 7 August 2026.
If you’d like, read the article while listening to any Carbon Credit Markets songs .
Brazil at COP31 and implementation by the business sector
Amcham, August 5, 2026
José Fernandes (AMCHAM/Honeywell) opened the event by noting that, just like COP30, COP31 will be measured by the ability to turn agreements into reality.
In the panel on the COP30 legacy, Ana Tony summed up the current moment: “Climate is no longer a niche issue.” She highlighted the 56 agreements reached, the strengthening of “two-speed” multilateralism (consensus-based and voluntary adoption), and the challenge of scaling up the Implementation Agenda - with Brazil focusing on deforestation and the international community on the phase-out of fossil fuels - alongside initiatives already announced for COP31, such as the “35/35” electrification goal, waste management, oceans, and agriculture. Regarding the future, she noted that the path ahead would be non-linear, marked by both setbacks and successes within a complex geopolitical landscape; she emphasized that moving beyond pilot projects to robust project pipelines - particularly in adaptation and resilience - would be crucial, as the public sector cannot tackle these challenges alone.
Dan Iochepe brought a perspective of continuity: activating what is already in place under the Global Stocktake - 30 objectives, 6 pillars, and 482 initiatives monitored by the UN’s NAZCA platform. He highlighted the Global Implementation Accelerator and the private sector's leading role through the SBCOP, which already brings together 45 million companies worldwide. “The <price of> carbon drops to zero in a net-zero scenario, so now is the time for the private sector,” he urged, advocating for a focus on a few key objectives and capitalizing on opportunities such as SAF, where Brazil could replicate the success story of ethanol.
In the panel on the regulated carbon credit market, Clara Cruz (Suzano) noted that the pulp and paper sector is entering the first phase of the SBCE but faces the challenge of financing more expensive technologies.
Rodrigo Lauria (Vale) emphasized that the “climate agenda is a matter of competitiveness,” noting that the company has maintained an emissions inventory for 20 years and that its early exposure to the CBAM is yielding competitive advantages. He also highlighted the importance of projects linked to carbon credits already issued in the voluntary market, which could potentially migrate - at least in part - to the regulated market.
During the panel she moderated, Paula Kovarsky remarked that “carbon should be viewed as the major currency of decarbonization.”
José Fernandes (AMCHAM / Honeywell) noted that, regarding the SAF price, the trend is likely to mirror the trajectory of ethanol over the decades, with increasing competitiveness driven by a gradual reduction in costs.
On the financing panel, Jens Nielsen (WCF) revisited Copenhagen 2009 and the importance of blended finance, with taxonomy serving as a “common language.”
Rafael Dubeaux (Ministry of Finance) detailed sustainable sovereign bonds, the FNDCT (National Fund for Scientific and Technological Development) - with an annual budget of R$ 20 billion - and ECOInvest, an initiative that rewards those who mobilize the most international capital, as well as the creation of a Brazilian “super-taxonomy” to prevent greenwashing. Regarding expectations for COP31, he noted that the event is expected to mark the shift from diplomacy to implementation, with Brazil advancing on fronts such as the TFFF, the formation of an open coalition for regulated carbon markets, and the development of interoperability between taxonomies - a sort of “super-taxonomy.”
Silvia Menicucci (Santander) highlighted that regulation and economic opportunity are decisive, citing the use of the European taxonomy in their models.
In the panel on what to expect from COP31, Gabrielle Hall (Australia’s Consul-General and Commissioner for Trade and Investment in São Paulo, Brazil) discussed the co-hosting arrangement with Turkey and priorities regarding the energy transition, climate finance, and oceans, citing JetZero - an Australian Sustainable Aviation Fuel (SAF) that already utilizes Brazilian ethanol.
Brazilian Ambassador Maurício Lyrio warned of a “post-Dubai cooling off” and a “waning momentum for decarbonization agreements,” with the US and Europe distracted by wars and energy-intensive AI. Consequently, he advocated focusing on implementing existing measures - such as the Luxembourg-based TFFF - and bolstering biofuels.
Aloísio Melo (Ministry of the Environment and Climate Change) noted that “COP is where the public and private sectors discuss shared global issues together,” anticipating the role of ITMOs, the Brazil Pavilion in the Blue Zone, and preparations for the next Global Stocktake.
Climate Risks and the Insurance Sector
MASP, August 6, 2026
At MASP, São Paulo Climate Week brought the insurance sector to the center of the discussion on adaptation. Maria Netto (iCS) opened the session by advocating for tools such as Adapta Cidades and solutions from EMBRAPA, noting that “it is not just a private cost; it is a social one as well” and that insurance can help price risks, provide predictability, and focus on resilience - including within concessions and PPPs.
In the climate panel titled “El Niño, climate risks, and financial protection: strengthening the culture of protection and mitigating losses,” Fátima Lima (MAPFRE) called for “more science at the table” and integration between governments and insurers: “Moving from a reactive mindset to a proactive one.”
Thelma Krug, with 21 years of experience at the IPCC, emphasized that “uncertainties are no reason for inaction” and noted that the 2023 El Niño was distinct due to the speed of its development. She cited maps from the latest IPCC report - showing a “human fingerprint” in heat and water data - that had already flagged risks for Rio Grande do Sul, arguing that cities must adapt even as models continue to evolve.
Ambassador Antonio da Costa e Silva (Ministry of Cities) noted that “disasters primarily affect the most vulnerable,” citing the resumption of prevention projects, the review of civil defense measures, and the fact that 20% of irregular urban settlements are located in fragile areas, while calling for greater inclusion, the assignment of postal codes, and land tenure regularization.
André Schelini (SEBRAE) presented data showing that 95% of mayors in small municipalities report already facing climate-related vulnerabilities, while also highlighting the prevalence of informality among small and medium-sized enterprises. He also cited Mato Grosso soybeans - consumed by 150 countries - noting that their low carbon footprint is not reflected in the price set in Chicago. He further mentioned the "Nature Economy" and SEBRAE’s National Reference Center for Sustainability.
Patrícia Chacon (Porto) noted that fewer than 20% of homes and businesses have flood coverage and that such coverage needs to be affordable. For general events—such as the strong winds that hit Ribeirão Preto, São Paulo, a few days ago—the company employs a "fast-track" process to expedite claims settlements without burdening the policyholder with red tape. She cited the mapping of social risks (proximity to schools, flood-control basins) and economic risks (critical industries) carried out in partnership with municipal governments, advocating for greater public-private integration backed by metrics and targets.
Viviane Torinelli (BACEN) emphasized that the Central Bank seeks to ensure the currency's purchasing power and social well-being; consequently, it closely monitors credit risk associated with crop failures and regional impacts. Attention to this issue dates back to 1995, with a particular focus on segmentation and the cost of capital - including through regulations such as Circular 3.809/2016 (rules for mitigating risk-weighted credit exposure via guarantees and financial instruments).
In the panel “Resilient infrastructure, climate risk management, and insurance in public concessions,” moderated by Claudia Prates (CNSeg), Luciene Machado (BNDES) warned that small investors - often lacking a full understanding of the risks - are frequently found at the end of the chain.
André Dabus (Marsh) noted that the State traditionally delivers infrastructure—albeit with limited resources—and that Public-Private Partnerships (PPPs) represent a significant path forward, with Brazil at the forefront. He highlighted the need to improve data quality, distinguish between ordinary and extraordinary risks, advance risk-transfer mechanisms (such as insurance-linked securities and catastrophe insurance), and expand industry expertise: out of roughly 100 insurance companies, perhaps only 10 possess robust project finance capabilities. He also posed a question that lingered: “Who foots the bill—including the social cost—in privatizations, concessions, and PPPs?” while also citing the challenges in gaining acceptance for innovations like “engineered wood.”
Erika Medici (AXA) stated that the insurance market is increasingly focused on prevention rather than merely "paying claims," advocating for the collaborative development of new business models and the education of both the market and customers. She cited studies showing that $1 invested in prevention reduces repair costs by $5 to $7.
Melina Amoni (WayCarbon) explained the importance of translating physical and transition risks into business decisions, mapping critical assets, and applying a “climate layer.” She cited a study supported by iCS that calculates the impact of action versus inaction and emphasized that the insurance sector serves as a vast database, playing a significant role both internally and externally.
In the panel “Rural Insurance, Credit, and Risk Management in the Face of Climate Change,” moderated by Guilherme Bastos (FGV Agro), João José Prieto Flávio (OCB) highlighted that cooperatives are increasing technical assistance from 20% to as much as 60% - with a great deal of information shared regularly - while advocating for customization and predictability: “There is no one-size-fits-all formula.”
Daniel Nascimento (FenSeg/BrasilSeg Rural) discussed regional nuances, the priority given to the bill (PL), budget restrictions, and the need for a database, as well as the return of income insurance.
Gláucio Toyama (Agro IRB Re) noted that while there is ample reinsurance capacity, the agricultural sector remains underserved - with a focus limited to major grains - and advocated for multi-year insurance policies and the individualized measurement of "weather-related default."
João Adrien (ESG Agro Itaú BBA) discussed ESG credit lines, the measurement of "soil cover" as an indicator of lower risk, and the need for scale and stronger correlations - summarizing it all by stating: “Regulation is the top priority."
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