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The Financial Innovation Laboratory (LAB) has structured, for 2022, a task force with five work fronts to strengthen and intensify debates on the voluntary carbon market in Brazil.
- Overview of carbon markets: mapping the ecosystem of actors in carbon markets and discussions on their functioning.
- Market: infrastructure for recording and trading carbon credits.
- Technology: use of new financial technologies in the carbon markets ecosystem.
- Land tenure: relevant land aspects in private projects and jurisdictional carbon market initiatives.
- State: role of state agents as actors in a carbon market ecosystem.
The Securities and Exchange Commission (CVM) manages the LAB, alongside the Brazilian Development Association (ABDE) and the Inter-American Development Bank (BID), in addition to a partnership with Deutsche Gesellschaft für Internationale Zusammenarbeit GmbH (GIZ).
According to Daniela Baccas, an analyst at the CVM’s Superintendence for Protection and Guidance for Investors (SOI), the objective of the action front is to identify existing gaps and obstacles in the development of voluntary carbon markets. “In addition to this analysis, from the perspective of infrastructure, blockchain technology, land aspects and state issues, the work teams will also seek to point out possible ways to solve these difficulties encountered, aiming at greater robustness, integrity and legal certainty” , added Daniela, who also participates in this task force that is part of the LAB’s Green Finance Working Group (GT FV).
The CVM’s Superintendent of Investor Protection and Guidance (SOI), José Alexandre Vasco, also highlights that the need to allocate large amounts of resources to mitigate and adapt to the effects of climate change has significantly increased the participation of financial and capital markets, for means of regulation and various market instruments.
“This new task force also reflects the importance that the topic has been acquiring for capital market regulators, which has materialized with the establishment of a group at IOSCO focused on Carbon Markets (carbon markets), in the IOSCO Sustainable Finance Task Force , with the CVM participating in both. In a broad discussion with market actors, regulators and government entities, in addition to civil society, the task force intends to present diagnoses and proposals within six months”.
José Alexandre Vasco, CVM’s Superintendent of Investor Protection and Guidance and coordinator of GT FV’s voluntary carbon market task force.
This initiative continues the work promoted in 2021 by GT FV, which generated six webinars, a specific publication with the summary and highlights of all these virtual meetings, in addition to the basic Q&A on voluntary carbon markets in Brazil , with the main questions and answers on the subject, clarifying and providing information on how voluntary carbon markets can play an important role in the decarbonization process of the global economy.
“The actions started last year were aimed at disseminating and leveling information on the subject, presenting knowledge about general concepts, characteristics, importance and practical experiences of carbon markets (regulated and voluntary)” , Daniela Baccas said.
GT FV stocks in 2021
About the LAB
The LAB is a multisectoral interaction forum, promoted by ABDE, the IDB and the CVM, which, as of 2019, has been partnered with Deutsche Gesellschaft für Internationale Zusammenarbeit GmbH (GIZ).
It brings together more than 280 participating institutions from different sectors (public and private), which interact, in a collaborative and voluntary way, to promote sustainable finance in Brazil.
See more on the LAB website .