Key Low-Carbon Development Policies and Instruments in Brazi

Brazil has a strong potential to achieve national climate goals and can also be an important decarbonization partner for other countries, especially in the supply of green hydrogen and critical raw materials for the production of new climate- neutral technologies. This article highlights the main tools and policies for Brazilʼs decarbonization and identifies potential areas in which the country can not only achieve its nationally determined contributions (NDCs), but also ensure innovative green economic growth. Low carbon intensity energy sources can ensure a low carbon footprint for industrial products, which can make goods more attractive in the face of increasing requirements and the introduction of measures such as the European Unionʼs (EU) carbon border adjustment mechanism (CBAM). Extensive deployment of renewable energy creates opportunities for the country to produce sustainable hydrogen, which will be in demand both domestically and globally. The main challenge for Brazilʼs decarbonization is its extensive agriculture, as well as widespread deforestation, the rate of which increased under the Bolsonaro administration. For agricultural products,which make up a large share of exports, deforestation regulations like those adopted in the EU would be a real barrier and could close European and other markets. The min- ing and processing of critical raw materials could be a potential breakthrough for the countryʼs economic growth due to the widespread decarbonization of the global economy. The low carbon intensity of the countryʼs industry, including mining, due to renewable energy sources appears to be a significant advantage. Lulaʼs return has given the international community hope that, at least in forestry and agriculture, significant efforts can be expected from Brazil, including international support, financing, and auditing.