CNI document for COP27 brings proposals for the implementation of the global carbon market, mobilization of climate finance and agenda for adapting Brazilian industry to climate change.

A in*****@cl***************.br/True" target="_blank" rel="noreferrer noopener">National Confederation of Industry (CNI) prepared proposals for investments in the environment for the Brazilian government to present at the Conference of the Parties on Climate Change (COP27), which takes place from November 6 to 18, in Sharm El Sheikh, Egypt. The document gathers the main actions that the industrial sector considers necessary for the continuity of the development of the climate agenda and the most relevant measures for the country in the negotiation process, turning to the carbon market through private enterprise applications.

The recommendations prioritize three themes: establishment and operationalization of the global carbon market, mobilization of resources to ensure climate financing and advancing the climate change adaptation agenda. They are in the document. Industry Vision for COP27, built in dialogue and collaboration with the Working Group (GT) on Article 6 and validated by the Brazilian Industry Climate Network, made up of more than 70 institutions, among industry federations, sectoral associations and companies.

in*****@cl***************.br/True" rel="noreferrer noopener" target="_blank">Check out the full document “Industry Vision for COP27”

"The world expects that COP27 will be marked by negotiations aimed at implementing the commitments assumed at COP26, in Glasgow. An increase in the ambitions of the countries' goals is also expected, since the commitments presented until COP26 proved insufficient to limit global warming to 1,5°C”, says the president of the CNI, Robson Braga de Andrade.

"For Brazil, it is urgent to define a national strategy to make better use of the new mechanism of the global carbon market. And as crucial as the negotiations that will take place in Sharm El Sheikh, will be the country's ability to organize itself internally to define a plan for implementing the Brazilian goals and the definition of an institutional arrangement that will make this new mechanism viable. We also need to move forward in the negotiations on climate finance, seeking to implement the commitments already assumed, and resume the development of the National Adaptation Plan", He emphasizes.

The global carbon market is expected to grow in the coming years, and not just in Brazil

During COP27, the negotiations will seek to define rules and procedures that allow the operation of the global carbon market, a mechanism provided for in Article 6 of the Paris Agreement. A CNI recommends that the Brazilian government define an implementation plan for the Nationally Determined Contribution (NDC), prepared with the participation of all productive sectors, and the establishment of a robust institutional arrangement for the implementation of Article 6, through of a collegiate that coordinates the different federal government agencies involved.

Industry also makes specific recommendations in relation to Article 6.4, which will allow the private sector to invest in carbon emission reduction projects. greenhouse gases (GHG) and generate credits that can be traded in the future global carbon market or reduce emission reduction targets established through the NDC. There is special concern for the issue to be regulated by law, to provide legal certainty and legitimacy to the entire process, in addition to defining the criteria for carrying out the corresponding adjustments.

In addition, the industry defends the fair and safe transition of projects and methodologies that were in force in the Clean Development Mechanism (CDM), an instrument in force since the Kyoto Protocol and which will be replaced by the new mechanism, the MDS - Sustainable Development Mechanism.

The CNI also proposes the definition of a national strategy for the use and implementation of activities within the scope of Article 6.2, which allows countries to exchange emission reductions or removals among themselves. Thus, the results of mitigating emissions that occur in one country can be transferred to another, which can account for these results in its national target.

New collective industry target envisions private funding and effective adaptation agenda

With regard to climate financing, the industry calls for greater efforts by the COP presidency to guarantee the financial commitment of developed countries to support developing countries in actions related to the climate. At COP26, this target was not achieved, and the Parties decided that, before 2025, the Conference will establish a new collective target of a floor of US$ 100 billion taking into account the needs and priorities of these most vulnerable countries.

As for the adaptation agenda, the CNI recommends that it be treated equally with the mitigation agenda. In Egypt, the country must monitor the deepening of discussions on the global goal of adaptation, respecting the realities of each country. And, at the national level, the Confederation defends the development of the National Adaptation Plan to subsidize this process and define the best coping strategies for the country, in addition to climate financing needs.

“It is important that Brazil actively participates in the discussions to ensure that the working group designated to deepen the global adaptation goal establishes transparent and concrete measures to increase and make funding available for mitigation and adaptation actions”, highlights CNI's Executive Manager for the Environment and Sustainability, Davi Bomtempo.

What are the goals of the Brazilian industry for the climate conference?

• Definition of a Nationally Determined Contribution (NDC) implementation plan, prepared in a transparent manner and with the participation of all sectors;
• Definition of a robust institutional arrangement, with a collegiate structure that can exercise coordination between the different ministries and sectors most involved in the implementation of the Brazilian NDC;
• Definition of a national strategy for the use and implementation of activities under Article 6.2, which includes demonstrating accounting that promotes the corresponding adjustment, among other issues;
• Adoption of a cap and trade system through the establishment of goals and market rules for the regulated sectors in accordance with a clear structure of governance and transparency which must have the participation of the industrial sector;
• Implementation of a national emissions registry that meets the requirements for integration with the international registry framework;

climate finance

• Increased effort by Brazil to ensure transparent and concrete measures to increase financing in mitigation and adaptation;
• Greater engagement of Brazil with developed countries and with the presidency of the COP to guarantee the financial commitment of developed countries, through the continuous mobilization of political leaders;

Adaptation to climate change

• Additional efforts by Brazil to ensure that communication regarding adaptation needs is consistent with the national reality;
• Increased country engagement with the COP Chair to secure concrete steps to increase adaptation finance for developing countries, as promised at COP26.

Source: CNI, National Confederation of Industry