Brazil will set a limit on carbon dioxide emissions for polluting companies

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emisiones de dióxido de carbono

Inspenet, August 21, 2023.

Brazil is in the process of implementing a limit on carbon dioxide emissions aimed at large corporations with high levels of pollution . This measure is part of a broader approach towards the ecological transition, with the aim of reaching CO 2 neutrality by 2050.

The plan, conceived under the direction of President Luiz Inacio Lula da Silva, encompasses various actions including the creation of a regulated carbon market, the gradual elimination of fossil fuel subsidies and the promotion of electric vehicles for public transport.

The regulated carbon market will impact approximately 5,000 companies that emit more than 25,000 tons of CO 2 equivalent per year . Sectors such as steel, cement, the chemical industry and aluminum production will be the first to feel the effects of this limit. Although the government has not yet specified the exact level of the same, it plans to reduce it progressively annually until reaching the total neutralization of emissions.

The goal is to reduce carbon dioxide emissions

The initiative is intended to encourage companies to invest in reducing carbon emissions and in innovation, while guaranteeing the international credibility of the carbon credits generated by Brazil. The efforts undertaken by the country are in line with Lula’s commitment to promote economic growth along with an energetic environmental agenda.

Despite being home to much of the Amazon rainforest and having a combination of sources of clean energy, Brazil’s total emissions have experienced an increase in recent years due to oil production and pollution from agriculture and industry. The country has also been reluctant to adopt electric vehicles and has only recently entered the green bond market.

The proposed proposals follow strategies similar to those adopted by developed economies, such as the European Union, which employs a cap-and-trade system to reduce pollution. The Lula administration intends to submit legislation to Congress to establish the market for carbon credits. However, he could run into opposition from conservative lawmakers. Other measures, such as concessions, credits and tax exemptions, will be implemented through presidential decrees.

According to an analysis carried out by the National Confederation of Industry of Brazil, the implementation of a regulated carbon market could increase the Gross Domestic Product by 2% and increase the income of the most disadvantaged segments of the population by 20%. in the next years.

The change strategy towards a more sustainable approach is accompanied by an infrastructure investment plan amounting to 350 billion dollars. This program includes the financing of projects aimed at the energy transition and other ecological initiatives. Although many of these projects are considered environmentally friendly, they also include controversial proposals, such as the Ferrograo railway that would cross the Amazon region.


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