The debate on climate change has motivated several countries including Brazil to seek measures to stop this advance. Concerning this, Brazil published Federal Decree No. 11.075 which establishes the procedures for Sectorial Plans for Mitigation of Climate Change provided by the sole paragraph of Article 11 of the Brazilian Federal Law No. 12,187/2009. The Decree also institutes Sinare, the National System for the Reduction of Greenhouse Gas Emissions.
The Ministries of the Environment and Economy and other sectorial ministries will be responsible for proposing these sectorial Plans, which must be authorized by the Interministerial Committee on Climate Change and Green Growth.
Reduction of greenhouse emissions
The Sectorial Plans will establish more restrictive targets for the reduction of greenhouse emissions and their removal via carbon sinks, with observance of the long-term goals assumed by Brazil as a signatory of the Paris Agreement.
These targets will be overseen using the periodic presentation of inventories by agents belonging to the listed sectors, to be defined in the respective Sectorial Plans.
Also, the time frames and rules for updating the Sectorial Plans must be in line with Brazil’s commitments assumed under the Paris Agreement.
The Decree also specified that the Brazilian Market for Reduction of Emissions will include an environmental management mechanism and will be the instrument to put the Sectorial Plans into operation, which will also serve as a tool for the enactment of emission reductions through the use of trading of carbon credits that are registered with the Sinare 5the National System for the Reduction of Greenhouse Gas Emissions).
Sinare’s rules of operation
As provided in the Decree, it will be up to the Brazil Ministries of the Environment and Economy to establish Sinare’s rules of operation. Sinare will be a centralized registry for emissions, removals, and compensations of greenhouse gas, as well as acts of commerce, transfers, transactions, and retirements of carbon credits.
Additionally, the Sinare will also facilitate, without the need to generate Certified Credits, the registration of carbon footprints of products, carbon of native vegetation, carbon in the ground, blue carbon, and carbon stock units.
Finally, the Decree leaves the proposition of the Sectoral Plans to additional future regulations from applicable ministries, also granting a 180-day deadline, to regulated sectors to submit their plans for the establishment of greenhouse gas emission reduction curves, considering the long-term goal of carbon neutrality assumed by Brazil according to the Paris Agreement.
The announcement of the Decree’s publication was welcomed with devotion, but before it can be operationalized, much work remains in the form of carrying out regulations.
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