Rio, August 18, 2003 (Agência Brasil - ABr) - The Ministry of Science and Technology (MCT) is preparing the country to enter the market of carbon credits in an efficient manner, said the MCT's secretary of Strategic Policies and Scientific Development, Jorge Guimarães, Friday (15), at the Industrial Federation of Rio de Janeiro (Firjan).
On Tuesday (19), the next meeting of the Interministerial Commission on Climate Changes is expected to ratify a letter of non-objection and internal procedures which will enable companies to participate in the market of carbon credits. The following stage envisions the evaluation of criteria, certification, and the methodology of clean development projects by autonomous international organizations. From this point on, firms will be qualified to receive support from the International Committee in charge of approving the instruments proposed for that specific sector, the secretary explained.
The Brazilian government is optimistic about the Kyoto Protocol's taking effect and, consequently, the Clean Development Mechanism, especially if Russia decides to sign the Protocol by September 12. The subject will be taken up by Minister Roberto Amaral during his trip to Russia at the end of the month to intensify bilateral cooperation agreements.
Guimarães explained that, even though the United States refuses to ratify the Protocol, Russia's vote is sufficient to provide the necessary 55% of support from countries which are the largest producers of carbon compounds, especially methane and CO2, the villains of global warming, and Brazil will consequently obtain the right to sell credits (referred to as "carbon credits") obtained through the reduction of pollutent gas emissions.
The most important meeting to conclude international agreements connected with the Kyoto Protocol will be held on December 12. Since the Protocol enters into effect 90 days after being approved by countries responsible for 55% of the sources of greatest pollution, September 12 is an important deadline for Russia, according to the secretary. He made it clear that the Russians are not obliged to sign the document by September, but there are great expectations, because, at the meeting in December in Milan, Italy, all the countries that have adhered to the Protocol will be ready to put it in practice.
The secretary informed that Russia's stance is to negotiate global climate change benefits in exchange for reductions in its foreign debt. "For this reason, it is playing the game of trying to avail itself of a global negotiation such as this one," he observed. On the basis of contacts between the Brazilian and Russian governments, the secretary affirmed that the outlook is favorable to Russia's adhesion in September. This will be very beneficial to industries in Brazil.
On the other hand, Guimarães remarked that it is too early to say that there are companies that will be benefitted, because the projects to reduce greenhouse gas emissions are still subject to the evaluation of an international committee that will authorize these clean mechanisms. Nothing has been approved so far. According to the secretary, until the Kyoto Protocol takes effect, carbon credits are not available to the companies that expect to benefit from this measure.
The government is preparing the country to take the utmost advantage of this business opportunity involving carbon credits. Thus, all steps are being taken, based on the idea that Brazil is the country that has the best chance of taking advantage of this opportunity, since the other two competitors (India and China) are more likely to use carbon credits in the waste sector. Brazil offers other comparative advantages, such as the areas of forestation and reforestation, without excluding the treatment of garbage and industrial and agrobusiness waste products, other critical areas that may receive benefits, maybe even becoming strong negotiating points, he explained.
Each one of these items constitutes a symbolic item in negotiations, since other countries view Brazil as a competitor that enjoys many advantages. Besides these niches, Guimarães referred to the resumption of the pro-alcohol production program and the production of biodiesel fuel as promising opportunities for Brazil in this area. (DAS)
