Decarbonizing the economy by mid-century is a priority for several countries, which represent more than 90% of global GDP, and for more than 2,500 global companies, according to the release of the Brazilian Stock Exchange (B3). The official disclosure highlights that the voluntary carbon market is part of the set of solutions for the decarbonization of the global economy and has two main functions.
The first is the neutralization of greenhouse gas emissions during the journey to zero carbon; the second is the neutralization of emissions that are difficult to abate, once carbon zero is reached, explains the Brazilian Stock Exchange.
The Brazilian Stock Exchange highlights that, according to a study by McKinsey & Company, Brazil has the potential to account for up to 15% of the world's supply of voluntary credits through natural solutions, whether capturing and/or abatement of greenhouse gases.
In addition to natural solutions, Brazil also has significant potential to generate credits through various technological solutions, such as the development of green hydrogen and the capture of biomethane.
In light of this information from the Brazilian Stock Exchange, the initiative will work on several fronts with the objective of positioning the country as a leader in a global market.
Among the main objectives to be achieved throughout its work on behalf of national and Brazilian companies in this global impact market, the Brazilian Stock Exchange highlights:
- Activate the offer through the best certification/verification processes and support regulatory discussions;
- Develop the necessary financial instruments to align demand with supply;
- Define requirements for a “curated” market and address key tax implications;
- Design the independent governance body to coordinate the market;
- Develop the engagement strategy with key stakeholders, according to the official definition.