Brazil

Country Information

Important Dates

MRP first draft submission: 
March 2014
Allocation of Implementation Funding: 
September 2014

Key Documents & Presentations

Most Recent
Document Language Date
PDF icon Brazil: PMR Project Implementation Status Report 2017 English October 2017
PDF icon Brazil: Carbon and Fuel Taxes in Brazil English March 2017
PDF icon Brazil: PMR Project Implementation Status Report English October 2016
PDF icon Brazil: World Bank Meeting on NDC Implementation English October 2016
Market Readiness Proposal
Document Language Date
PDF icon Brazil: Final MRP English August 2014
PDF icon Brazil: Final MRP Presentation English August 2014

Market-based Approach

Fact

 www.famouswonders.com15 of Brazil's 27 states have laws on climate change policy.

The PMR supports Brazil to explore options for various types of carbon pricing schemes in order to select suitable instrument for implementation and to build MRV capacity.

“The MRP proposes to put in place an evaluation and impact assessment process to prepare evidence for political decision making and provide transparency on the benefits and costs of the adoption of carbon pricing instruments in the country. In this sense, the Brazilian MRP was designed to broaden and deepen the analysis of the impacts of the adoption of carbon pricing instruments in the country, at the same time as promoting the discussion on policy options with the relevant stakeholders” (MRP of Brazil, pg. 8).

The MRP will produce a White Paper of policy proposals to inform the decision-making process on the adoption of mitigation instruments as part of the PNMC toolkit in the post-2020 period. Three components of work are defined to feed into this paper: 

  • Component 1: analytical studies aimed at developing alternative design options, covering both carbon tax and emissions trading;
  • Component 2: impact assessment of the policy tools identified in Component 1; and 
  • Component 3: strategy to strengthen the understanding of carbon pricing instruments among stakeholders through engagement, communication, and consultation.

National Context

Mitigation Target

Brazil has a voluntary target to reduce domestic emissions to 36.1%-38.9% below its business-as-usual projection for the year 2020, as outlined in the pledge made at the Copenhagen Conference of the

Parties to the UNFCCC in 2009. This would bring domestic emissions to levels last seen in 2000. These committments are codified in 2009 in the National Climate Change Policy (PNMC) (Law n. 12.187/2009).

Coordinated by the Ministry of Environment, the National Plan on Climate Change was jointly prepared by 17 ministries and received input from the non-governmental Brazilian Forum of Climate Change. The document was made available for a month-long public consultation in October 2008 and signed into law by the President in November 2008. The document defines principles, goals, guidelines, and instruments for policy implementation.and outlines sectoral plans for the following areas: deforestation (Action Plan to prevent and control the deforestation in the Brazilian Amazon - PPCDAM, and the Action Plan for prevention and control of fires and deforestation in the Cerrado – PPCerrado); energy (10-year Energy Plan); agriculture (Low Carbon Agriculture Plan – ABC Plan); industry; mining; transportation and urban mobility; and health. It is the main legal framework regarding climate change action in Brazil. The National Plan was updated in 2013.

Brazil also established a National Fund for Climate Change in 2010, a R$ 900+ million resource that supports projects in the following areas: infrastructure; renewable energy; industry; desertification; sustainable cities; native forests; and management of carbon emissions.

Achieving the Target

Brazil has made significant progress toward achieving its voluntary target. Emissions from land use and land use change (LULUCF) represent the largest contributor to the countries emissions profile. Between 1995 and 2005, emissions from this source were reduced by 40.1% and by an additional 76% between 2005 and 2010 largely as a result of the stoppage of deforestation to old growth forest. In 2010, it reported that nationally its GHG emissions were 60.6% below projected emissions in 2020. As a result, the country has taken a hard look at how its emissions profile is changing and adapt the National Plan accordingly. The PMR is helping to explore and analyze options that can help Brazil to continue to cut emissions in the most cost-effective and efficient way to both meet its 2020 target and prepare for new targets post-2020.

Focal Point

Brazil’s climate policy is led by the Ministry of Environment and Minister Izabella Mônica Vieira Teixeira. The analysis of economic instruments for climate change mitigation is under the purview of the Ministry of Finance, which has established a General Coordination of Environment and Climate Change (COMAC/SPE/MF) at the Secretariat for Economic Policy.