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FACT SHEET

Brazil at COP22
22nd CONFERENCE OF THE PARTIES TO
THE UNITED NATIONS
FRAMEWORK CONVENTION ON
CLIMATE CHANGE
12th Conference of the Parties
serving as a Meeting of
the Parties to the Kyoto Protocol
1st Conference of the Parties
serving as a Meeting of
the Parties to the
Paris Agreement

MARRAKECH
7 to 18
November 2016

SOURCES
This fact sheet was produced by the Secretariat for Social Communication (Secom, in the
Portuguese acronym) of the Presidency of the Federative Republic of Brazil in partnership with
the Ministry of the Environment (MMA, in the Portuguese acronym), Ministry of Foreign
Affairs (MRE, in the Portuguese acronym), Ministry of Mines and Energy (MME, in the
Portuguese acronym) and the Energy Research Company (EPE, in the Portuguese acronym).
Secom is responsible for coordinating public relations activities for Brazils Federal
Government. Secom International focuses on relations with the foreign press.

PRESS SERVICES AT COP22


Contacts in Marrakesh
Renata Negrelly
+55 61 98233-8484
renata.negrelly@itamaraty.gov.br
Ticiane Oliveira
+55 61 99194-8006
ticiane.oliveira@mma.gov.br
Lucas Tolentino
+55 61 99254-0990
lucas.tolentino.terceirizado@mma.gov.br

Contacts in Brasilia
Marcos Savini
+55 61 2030-8006
marcos.savini@itamaraty.gov.br
Brbara Semerene
+55 61 3704-7625
barbara.semerene@cdn.com.br

Ministry of the Environment, Ministry of Mines and Energy,


Ministry of Foreign Affairs and Secretariat for Social
Communication International Area Presidency of the
Federative Republic of Brazil

CONTENTS

Introduction ........................................................................................................... Page 4


Overview of Negotiations ...................................................................................... Page 5
Brazil Lounge .......................................................................................................... Page 7
The Brazilian contribution to the Paris Agreement ................................................ Page 8
Implementation strategy for the Paris Agreement and the Brazilian NDC Page 10
Adaptation to climate change .............................................................................. Page 11
REDD+: how Brazil prepared to receive results-based payments ..... Page 12
Fighting deforestation .......................................................................................... Page 13
Box: South-South Cooperation ............................................................................. Page 14
Energy .................................................................................................................. Page 15
Biofuture Platform ............................................................................................... Page 16
Agriculture ............................................................................................................ Page 18
Brazil's track record in fighting climate change ................................................... Page 19

Ministry of the Environment, Ministry of Mines and Energy,


Ministry of Foreign Affairs and Secretariat for Social
Communication International Area Presidency of the
Federative Republic of Brazil

INTRODUCTION

The Paris Agreement was negotiated and will be implemented under the United
Nations Framework Convention on Climate Change (UNFCCC). It establishes concerted
measures to limit global warming to a maximum of 2o C above pre-industrial levels by
the end of this century. After its adoption at the Paris Conference on Climate Change
(COP21) in 2015, the Agreement entered into force on 4 November 2016 30 days
after over 55 parties to the Convention deposited their instruments of ratification,
acceptance, approval or adherence at the United Nations (UN). These countries
account for over 55% of the total estimated global emissions of greenhouse gases
(GHG).
Brazil's contribution under the Paris Agreement was ambitious, as it was the only big
developing country to adopt absolute reduction targets for its whole economy. Brazil
ratified the Paris Agreement on 12 September 2016, and the ratification instrument
was deposited at the UN Headquarters by President Michel Temer on 21 September.
Brazil's Nationally Determined Contribution (NDC) includes the reduction of its
greenhouse gas emissions in 37% by 2025, with a further indicative target of a 43%
reduction by 2030 both compared to 2005 levels. The actions required to implement
the mitigation contribution envisaged in the NDC are mainly associated with three
sectors:
Agriculture As part of its contribution under the Paris Agreement, Brazil must restore
15 million hectares of degraded pastures, as well as implement an integrated croplivestock-forest system in 5 million hectares.
Energy Most NDC actions in the energy sector are linked to areas such as transport,
energy efficiency and renewable energy sources.
Fighting deforestation, restoring and reforesting actions After having dramatically
reduced deforestation in the Amazon by about 78% between 2004 and 2015 thanks
to the Action Plan for Prevention and Control of Deforestation in the Amazon
(PPCDAm, in the Portuguese acronym) launched in 2004 annual deforestation rates
have remained stable between 5,000 and 6,000 km over the past few years. PPCDAm's
fourth phase, to be launched soon, will endeavour, through more direct and constantly
monitored actions, to strengthen the initiatives defined in the Plan's four thematic
areas, with special attention paid to Monitoring and Control. PPCDAms goal is to
achieve zero illegal deforestation by 2030. Forest recovery, including through
reforestation, aims at compensating the emissions resulting from illegal vegetation
removal, as contemplated in the Forest Code.
Given the nature of the challenge of further reducing deforestation, the development
of PPCDAm's fourth phase has involved multiple stakeholders (private sector,
Ministry of the Environment, Ministry of Mines and Energy,
Ministry of Foreign Affairs and Secretariat for Social
Communication International Area Presidency of the
Federative Republic of Brazil

organised civil society, federative bodies) in workshops, seminars and bilateral


meetings. These have enabled a deeper understanding of the complexities,
opportunities and challenges to be faced.
A national implementation and funding strategy for the Brazilian Contribution to
reducing greenhouse gas emissions is currently being developed with the support of
the Inter-American Development Bank (IDB). Discussions with society on this strategy
will intensify in November through Structured Talks aimed at identifying hurdles and
developing measures to facilitate the fulfilment of the contributions included in the
Brazilian NDC.
OVERVIEW OF NEGOTIATIONS

Background
The United Nations Framework Convention on Climate Change (UNFCCC) and its Kyoto
Protocol are key instruments to the international climate change regime. The 17th
Conference of the Parties (COP17) held in Durban in 2011 established an 'Ad Hoc'
Working Group on the Durban Platform for Enhanced Action (known as the Durban
Platform, or ADP). ADP's main goal was to negotiate a new agreement under the
Convention to be applicable to all Parties and implemented as of 2020, after the
second period of commitments under the Kyoto Protocol. Negotiations were
concluded in December 2015 at the 21st Conference of the Parties (COP21) held in
Paris, France, with the adoption of the Paris Agreement, which now constitutes a new
essential element of the regime.
The Agreement represents a new approach compared to the Kyoto Protocol, which
envisaged, in the treaty itself, result obligations in the form of greenhouse gas
emission reduction targets for developed countries. The Paris Agreement adopts a
'bottom-up' logic, establishing conduct obligations through which the Parties regularly
present their climate change mitigation and adaptation Nationally Determined
Contributions (NDCs). The aggregate of all these national efforts will be periodically
reviewed under the Agreement so as to check if all envisaged actions will lead to the
goal of limiting global temperature rise to a lot less than 2o C above pre-industrial
levels.
The new instrument contemplates the key positions advocated by Brazil during the
negotiations. The Paris Agreement incorporated the differentiation proposal presented
by Brazil, according to which developed countries should lead global greenhouse gas
mitigation efforts, and developing countries would be encouraged to strengthen their
actions and adopt similar targets. Thanks to this subtler differentiated approach for
developed and developing countries, it was possible to maintain UNFCCC's legal
framework and expand the regimes overall ambition. With regard to funding, for

Ministry of the Environment, Ministry of Mines and Energy,


Ministry of Foreign Affairs and Secretariat for Social
Communication International Area Presidency of the
Federative Republic of Brazil

example, developed countries overall commitment to supporting developing


countries' mitigation and adaptation actions was maintained without creating new
obligations for the 'emerging economies'.
COP22 will be the first such conference after the Paris Agreement was adopted at the
French capital in December 2015, during COP21. The Paris Agreement was opened for
signature at a high-level ceremony hosted by the UN Secretary-General on 22 April
2016 in New York. Having achieved the minimum 55 required ratifications, which
correspond to at least 55% of all greenhouse gas global emissions, the Agreement
came into force on 4 November, less than seven months after it was opened for
signature. This is a clear demonstration of the priority given by the international
community to fighting climate change. Brazil completed its ratification process very
quickly, with unanimous approval by the National Congress, which reflects the national
consensus on this topic.
Prospects for COP22
While COP21 can be described as an 'arrival point', which brought a negotiation
process to an end with the adoption of the Paris Agreement, COP22/CMA1 in
Marrakesh marks a 'starting point' for a new stage in the international climate change
regime under the UNFCCC. This new stage puts a stronger focus on the
implementation of obligations undertaken in the Agreement.
The Paris Agreement envisages several mechanisms and processes whose operating
rules still need to be negotiated and agreed before the Agreement can be effectively
implemented. During COP22, negotiations will focus on achieving progress in the
mandates established by the work programme adopted together with the Paris
Agreement through decision 1/CP.21 the so-called 'rulebook' of the Agreement.
The Agreement's coming into force before finalising the rules that will enable its full
implementation, however, raises a number of procedural and legal questions that
must be solved before the official opening of CMA1 on 15 November. A solution is
required to allow the conclusion of the work plan by 2018 in an inclusive manner, i.e.,
without excluding the countries that have not yet ratified the Agreement.
COP22 will also present an opportunity to renew the commitments to fighting climate
change in the pre-2020 period. High-level talks will be held to assess the
implementation of the commitments presented by 2020. Developed countries will
present a roadmap, in order to reach the USD 100 billion climate finance mobilisation
target to support developing countries by 2020.
Outside the formal negotiation process, several events will be held to mobilise climate
change fighting actions by State and non-State players. In this context, it is worth

Ministry of the Environment, Ministry of Mines and Energy,


Ministry of Foreign Affairs and Secretariat for Social
Communication International Area Presidency of the
Federative Republic of Brazil

highlighting the launch of the Biofuture Platform, a Brazilian initiative in partnership


with other countries to promote advanced low carbon and bio-refined fuels
Brazil's positions
The Brazilian government supports maintaining the tasks of decision 1/CP.21's work
programme under COP until 2018. It also proposes to suspend CMA for one year so as
to enable a progress assessment of the work programme and continue encouraging
new ratifications. The meeting would thus be suspended once more, and would
resume in 2018 to complete the work programme.
The Brazilian government understands that this would send an adequate political
signal to the international community on the implementation of the Paris Agreement.
The Brazilian government understands that the instrument coming into force early
would imply expediting the works.
With regard to the topics under the work programme of decision 1/CP.21, Brazil
presented a total of seven submissions on the following topics: adaptation (together
with Argentina and Uruguay), technology transfer, support transparency, and markets
and NDCs. All Brazilian submissions are available on the UNFCCC portal
(http://unfccc.int/documentation/submissions_from_parties/items/5900.php).
Expected results
- Approval of a clear schedule for the negotiations on the 'rulebook' for the
implementation of the Paris Agreement, to be completed by 2018;
- More clarity on the USD 100 billion climate finance mobilisation target to support
developing countries by 2020;
- Brazil's launch of the Biofuture Platform in partnership with other countries.

BRAZIL LOUNGE

At COP22, the Brazil Lounge will be hosted by the Ministry of the Environment in
partnership with the Ministry of Foreign Affairs, the Brazilian Trade and Investment
Promotion Agency (Apex, in the Portuguese acronym), and the National Water Agency
(ANA, in the Portugues acronym). A number of lectures, discussions and presentations
on climate change-related topics will be held with the participation of civil society
organisations. The schedule will be available during the event.

Ministry of the Environment, Ministry of Mines and Energy,


Ministry of Foreign Affairs and Secretariat for Social
Communication International Area Presidency of the
Federative Republic of Brazil

THE BRAZILIAN CONTRIBUTION TO THE PARIS AGREEMENT

Brazils Nationally Determined Contribution (NDC) includes a 37% reduction by 2025,


of its greenhouse gas emissions compared to 2005 levels. The system used to ensure
full transparency, clarity and understanding is the Global Warming Potential in 100
years (GWP-100) using values from the Fifth Assessment Report (AR5) of the
Intergovernmental Panel on Climate Change (IPCC). However, for the sake of
information, estimates have been developed using the Global Temperature Potential
(GTP), which the Brazilian government considers more consistent with a contribution
aimed at limiting global average temperature rise to 2o C above pre-industrial levels.
In addition, the Brazilian NDC indicates a further indicative target of a 43% reduction
by 2030 compared to 2005 levels.
The format that was presented (mitigation commitment for 2025 and indicative target
for 2030) is justifiable as it offers more flexibility between intended contribution
estimates and any future adjustments.
Therefore, Brazil will reduce its greenhouse gas emissions in the context of
population1, GDP and per capita income growth, which undoubtedly makes this
contribution significantly ambitious.

BRAZIL'S MITIGATION CONTRIBUTION AND SUBSEQUENT INDICATIVE


CONTRIBUTION

Emissions
in gigatonnes of
carbon dioxide
equivalent
(GtCO2e)*
Emissions
reduction
compared to 2005

2005

2025

2030

2.1

1.3

1.2

37%

43%

*According to the greenhouse gas equivalence metrics of the Global Warming Potential (GWP).

The Brazilian population is expected to continue growing until the 2040s, when it should reach a stable level of around 230

million people.

Ministry of the Environment, Ministry of Mines and Energy,


Ministry of Foreign Affairs and Secretariat for Social
Communication International Area Presidency of the
Federative Republic of Brazil

In order to reach this level, the federal government intends to adopt policies and
actions in several areas, including, in particular, sustainable bioenergy, forestry and
land use change, energy, agriculture, industry and transport.
Brazil's mitigation actions to implement this contribution, including its current efforts,
are consistent with the target of limiting global average temperature rise to 2 C above
pre-industrial levels, considering the scenarios developed by the Intergovernmental
Panel on Climate Change (IPCC) and national circumstances. Therefore, according to
the IPCC's Fifth Assessment Report, the mitigation actions included in the NDC are in
tune with the best science available.
Emission intensity and per capita emissions
The Contribution undertaken by Brazil corresponds to an estimated 66% reduction in
terms of emission intensity2 in 2025, and a 75% reduction in terms of emission
intensity in 2030, both compared to 2005. If we take 2012 estimated emissions as a
reference, the NDC still represents a substantial emission intensity reduction of about
48% in 2030.
The Brazilian ambition becomes even clearer if we consider the figures relative to per
capita emissions. Our per capita emissions dropped from 14.4 tCO2e in 2004 to an
estimated 6.5 tCO2e in 2012. In 2012 levels, Brazil's per capita emissions are already
equivalent to what some developed countries have considered equitable and
ambitious for their average per capita emissions in 2030. Thanks to the contribution
offered by Brazil, our per capita emissions should drop even further to approximately
6.2 tCO2e in 2025 and 5.4 tCO2e in 2030.
EMISSION INTENSITY AND PER CAPITA EMISSIONS
2004

2012

Reduction in
emission intensity
(tCO2e/GDP
compared to 2005
levels)*
Per capita
14.4
emissions
(tCO2e/population)

6.5

2025

2030

66%

170%

6.2

5.4

*According to the greenhouse gas equivalence metrics of the Global Warming Potential (GWP).

Emission intensity: tonnes of carbon dioxide equivalent (tCO2e) divided by the 2005 GDP measured in US$ 1,000.

Ministry of the Environment, Ministry of Mines and Energy,


Ministry of Foreign Affairs and Secretariat for Social
Communication International Area Presidency of the
Federative Republic of Brazil

IMPLEMENTATION STRATEGY FOR THE PARIS AGREEMENT AND THE BRAZILIAN NDC

In the context of the Paris Agreement negotiations, Brazil presented a contribution to


reduce greenhouse gas emissions in the whole of its economy in 37% by 2025, with a
further indicative target of a 43% reduction by 2030 both compared to 2005 levels.
These targets translate into national emissions of approximately 1.3 gigatonnes of CO2
equivalent in 2025, and 1.2 GtCO2e in 2030. Although no sectoral commitment was
made internationally, these targets were based on studies and projections on viable
alternative scenarios to be implemented by 2030, considering the following actions,
which are consistent with the 2o C global temperature target:
i)
biofuels: increasing the share of sustainable bioenergy in Brazil's energy
mix to approximately 18%, by expanding biofuel consumption, increasing ethanol
supply (including by increasing the share of advanced second generation biofuels), and
increasing the share of biodiesel in the diesel mix, as well as promoting co-generation
from biomass;
ii)

forestry and land use change:

strengthening the enforcement of the Forest Code at federal, state and


municipal level;

strengthening policies and measures with a view to achieving zero illegal


deforestation in the Brazilian Amazon by 2030, and compensating for
greenhouse gas emissions from legal vegetation removal by 2030;

restoring and reforesting 12 million hectares of forests by 2030 for multiple


purposes;

enhancing sustainable native forest management systems through


georeferencing and tracking systems applicable to native forest management,
with a view to curbing illegal and unsustainable practices.

iii)
in the energy sector, achieving an estimated 45% share of renewables in the
energy mix by 2030, including:

expanding the use of renewable energy sources other than hydropower in the
total energy mix to between 28% and 33% by 2030;

expanding the use of non-fossil fuel energy sources domestically by increasing


the share of renewables (other than hydropower) in the power supply to at
least 23% by 2030, including by raising the share of wind, biomass and solar
energy;

achieving 10% efficiency gains in the electricity sector by 2030.

Ministry of the Environment, Ministry of Mines and Energy,


Ministry of Foreign Affairs and Secretariat for Social
Communication International Area Presidency of the
Federative Republic of Brazil

iv)
in the agriculture sector, strengthening the Low Carbon Emission Agriculture
Programme (ABC) as the main strategy for sustainable agriculture development,
including by restoring an additional 15 million hectares of degraded pastures by 2030
and enhancing 5 million hectares of integrated crop-livestock-forest systems (ICLFS) by
2030;
v)
industry: promoting new standards of clean technology and further enhancing
energy efficiency measures and low carbon infrastructure;
vi)
transport: promoting efficiency measures, and improving transport
infrastructure and public transport in urban areas.
The measures listed above indicate the priority actions to be implemented with the
aim of achieving the emission reduction contribution for the whole economy by 2025,
and the indicative target by 2030. For each of these actions, detailed implementation
plans will be produced based on structured talks with the competent sector ministries,
interested sub-national entities, and representatives from civil society and pertinent
sectors of the economy.
Brazil is currently developing a national implementation and funding strategy for the
Brazilian Contribution to reducing greenhouse gas emissions. Discussions with society
on this strategy will intensify in November after a paper drafted by consultants with
the support of the IDB is submitted. The paper contains a clear description of each
target, the estimated necessary investment, and the challenges to be faced. This
document aims only at informing the structured talks on this matter. It neither
represents the government's view, nor a draft implementation strategy. The outcome
of all these structured dialogues should be available to the population for comments
during the first half of 2017. Building on these talks, it will be possible to develop the
NDC implementation strategy by the end of 2017.

ADAPTATION TO CLIMATE CHANGE

Brazil is currently implementing a national climate change adaptation agenda with two
main action fronts: a) furthering knowledge on the country's climate risk; and b)
promoting adaptation and managing vulnerabilities on different territorial scales.
The Brazilian government has identified its vulnerability to climate change from a
spatial perspective at municipal level through different methodologies and
approaches. A human climate change vulnerability mapping exercise was developed in
four Brazilian states (Pernambuco, Esprito Santo, Amazonas and Paran). Another two
states will be added in 2017 (Mato Grosso do Sul and Maranho), and the goal is to
gradually expand the map over the next few years to include all federative units. A
system (SISVUCLIMA, in the Portuguese acronym) has been developed to enable
vulnerability management at municipal level. Another important ongoing initiative is

Ministry of the Environment, Ministry of Mines and Energy,


Ministry of Foreign Affairs and Secretariat for Social
Communication International Area Presidency of the
Federative Republic of Brazil

the identification of the country's vulnerability to different risk categories associated


to climate change: a) Brazil's vulnerability to droughts has been mapped for all 5,570
Brazilian municipalities; b) over the next few years, other risk categories will be
considered, such as floods, landslides, dengue and impacts on phytophysiognomy,
indicating necessary adaptation measures at local level.
Another important instrument for the implementation of the Brazilian adaptation
agenda is the National Adaptation Plan (NAP) launched in May 2016. The following
examples of ongoing and planned initiatives are worth mentioning as cross-cutting
actions:
AdaptaClima: Online platform to manage knowledge on adaptation (players
have been mobilised, the platform structure has been defined, and tool is scheduled to
launch in the 2nd half of 2017).
The adaptation capacity-building strategy has been developed, and some
courses have been delivered. The next steps include delivering long distance training
programmes, including through cooperation with federative units.
In addition to cross-cutting actions, the NAP has established guidelines to implement
adaptive measures aimed at increasing climate resilience in 11 sectors and themes:
Agriculture; Biodiversity and ecosystems; Cities; Natural disasters; Industry and mining;
Infrastructure (energy, transport and urban mobility); Vulnerable peoples and
communities; Water resources; Health; Food and nutritional security; and Coastal
zones. More detailed information on the NAP is available on:
http://www.mma.gov.br/clima/adaptacao/plano-nacional-de-adaptacao.

REDD+: HOW BRAZIL PREPARED TO RECEIVE RESULTS-BASED PAYMENTS

In December 2015, Brazil was the first country to meet all requirements and have its
REDD+ results (reducing emissions from deforestation and forest degradation) verified
under the UNFCCC and added to the Lima Information Hub. Thus, Brazil became
eligible to receive payments for fully UNFCCC recognised REDD+ results.
The Warsaw Framework and other REDD+ decisions under the UNFCCC set the rules
for an international architecture to provide financial incentives to developing countries
that implement policies to reduce their greenhouse gas emissions deriving from
deforestation and forest degradation. The rules also cover the role of forest
conservation, sustainable forest management, and increase in forest carbon stocks
(REDD+).
Developing countries wishing to receive payment for REDD+ results must go through a
measurement, reporting and verification process (MRV). This process can take up to 24

Ministry of the Environment, Ministry of Mines and Energy,


Ministry of Foreign Affairs and Secretariat for Social
Communication International Area Presidency of the
Federative Republic of Brazil

months from the submission of reference levels, their evaluation, the submission of a
technical annex and the final recognition of REDD+ results.
The Summary of Information on how the Cancun safeguards have been addressed and
respected by Brazil an additional requirement to access REDD+ result payments
was submitted by Brazil to the UNFCCC in May 2015. Since then, Brazil has been
developing its Safeguard Information System (SISREDD+), which will enable
transparent and immediate access to relevant information.
Finally, on 2 December 2015, Ministerial Decree MMA no. 370 established a National
REDD+ Strategy (ENREDD+, in the Portuguese acronym). This was the last requirement
for Brazil to have its results published in the Lima Information Hub. The strategy's
general objective is to contribute to mitigating climate change by eliminating illegal
deforestation, conserving and recovering forest ecosystems, and developing a
sustainable low carbon forest economy, thus generating economic, social and
environmental benefits.

FIGHTING DEFORESTATION
Brazil has been making efforts to fight deforestation and promote regional sustainable
development in the Legal Amazon through the Action Plan for Prevention and Control
of Deforestation in the Amazon (PPCDAm). According to the National Institute for
Space Research, deforestation rates in the Legal Amazon dropped 78% between 2004
and 2015, from 27,772 km to 6,207 km. The deforestation rate time series from
1998 to 2015 has maintained the same definitions and employed the same
technologies over the years, so as to ensure its consistency and verifiability. The
reduction of deforestation in the Amazon from 2004 to 2015 represents a significant
mitigation of greenhouse gas emissions and climate change.
Despite the significant drop in deforestation rates from 2004 to 2012, more stable
levels have been observed over the past few years, ranging from 5,000 to 6,000 km.
The Brazilian government and society in general are aware of the complexity and the
challenges involved in achieving zero illegal deforestation by 2030. The fourth phase of
the Programme for Prevention and Control of Deforestation in the Amazon (PPCDAm)
will continuously identify and monitor actions to directly address the causes of
deforestation, which can vary in different parts of the Amazon. Some actions will be
prioritised in the areas most affected by deforestation, and will receive additional
support from the competent federal agencies. Strengthening the integration of federal
and state actions will be promoted, particularly for those initiatives related to
Monitoring and Control.

Ministry of the Environment, Ministry of Mines and Energy,


Ministry of Foreign Affairs and Secretariat for Social
Communication International Area Presidency of the
Federative Republic of Brazil

Source: INPE/PRODES

The recognition of these Brazilian efforts under the United Nations Framework
Convention on Climate Change requires the formalisation of national initiatives to
reduce greenhouse gas emissions from deforestation and forest degradation, including
the role of forest conservation, sustainable forest management, and enhancement of
forest carbon stocks (REDD+).

SOUTH-SOUTH COOPERATION

Negotiations for the signing, on the margins of COP22, of a trilateral South-South


cooperation project to strengthen national Forest Monitoring systems are very
advanced. The system will employ Satellite Data and Geospatial Tools, and will involve
the ten countries that integrate the Central African Forests Commission (COMIFAC).
On the Brazilian side, the project involves the Ministry of the Environment (MMA), the
National Institute for Space Research (INPE, in the Portuguese acronym) and the
Brazilian Cooperation Agency (ABC, in the Portuguese acronym). Its main objective is
to contribute to preventing, monitoring and fighting deforestation and forest
degradation in Cameroon, the Central African Republic, Congo, the Democratic
Republic of Congo (DRC), Gabon, Rwanda, Sao Tome and Principe, Chad, Equatorial
Guinea, and Burundi. This initiative aims at strengthening these countries' capacity to
use satellite data building on Brazil's successful experience in fighting deforestation
and on INPE's methods and technologies. The United Nations Food and Agriculture
Organization (FAO) will be the project's implementing agency.
This initiative reflects Brazil's commitment under its NDC to promoting South-South
cooperation as a means of facing the challenges imposed by climate change.
Ministry of the Environment, Ministry of Mines and Energy,
Ministry of Foreign Affairs and Secretariat for Social
Communication International Area Presidency of the
Federative Republic of Brazil

ENERGY
The federal government is currently reassessing Brazil's Energy Sector and the existing
national policies that involve this sector with the objective of promoting modernisation
and efficiency in the business environment. This would make this sector more
attractive for private investors, and better aligned with society's needs and the
country's strategic interests. A new long term plan will be published in 2017: the 2050
National Energy Plan (PNE 2050, in the Portuguese acronym). This new plan will
present a vision of the future and the guidelines for investment in the country. The
Decennial Plan for Electric Energy Expansion (PDE, in the Portuguese acronym) will be
reviewed and republished every year. It will focus on a medium term horizon, and
include all planned generation and transmission projects in the country.
The review is currently focusing on four main areas:
Review of operation and expansion model A major effort is being made to adapt the
National Electric Energy Integrated Systems operational demands and expansion plans
so as to ensure the best use of investment and energy resources and the reduction of
emissions in the short, medium and long term.
The review proposes improvements to the business models, legal and regulatory
frameworks, and transmission and generation expansion funding structure, as well as
to system modernisation and efficiency incentives, based on the competitive insertion
of new technologies.
Distributed generation Since 2002, the National Electricity Regulatory Agency (Aneel,
in the Portuguese acronym) has been encouraging self-production of electricity
through distributed generation, i.e., power generated close to consumer units from
incentivised sources (wind, solar, biomass/biogas, small scale hydropower, and
qualified co-generation). Simplified processes have helped to consistently increase the
share of this type of generation, which is expected to reach 1.2 million units by 2024.
Energy efficiency A new National Energy Efficiency Programme (PNEF, in the
Portuguese acronym) bringing together the synergies between PROCEL (electric
energy) and CONPET (fuels) has reached its final development stages. Building on the
experience acquired from the implementation and operation of these programmes
over the past few years, the PNEF will count on a project implementation executive
plan to be monitored and reviewed every year: the Decennial Energy Efficiency Plan
(PDEF, in the Portuguese acronym).
Biofuels Brazil is a global pioneer in the production and use of bioethanol as a car
fuel. It has now started the development and commercial production of second
generation ethanol (see Box), which has the potential to expand the participation of
this energy source in the country's energy mix. This expansion would adopt an
agribusiness model that not only enables increased efficiency and productivity, but

Ministry of the Environment, Ministry of Mines and Energy,


Ministry of Foreign Affairs and Secretariat for Social
Communication International Area Presidency of the
Federative Republic of Brazil

also reduces costs and emissions without competing with food production, and
without the need to expand agriculture to environmental preservation areas. In 2016,
the Brazilian government sanctioned a law increasing the percentage of biodiesel
added to fossil diesel in the country from the current 7% to 8% in 2017, 9% in 2018,
and 10% in 2019. This measure creates opportunities for family farmers and for
agribusiness in Brazil, as the scale will lead to cost reductions and local generation of
jobs and income.

BIOFUTURE PLATFORM

At COP22, Brazil intends to coordinate an effort to create a global platform for second
generation biofuels, other advanced low carbon fuels, and the bioeconomy. This effort,
led by the Ministry of Foreign Affairs, aims at bringing together all interested countries
in Marrakesh to discuss the creation of the Biofuture Platform. The event will take
place in the Morocco pavilion on 16 November at 5 p.m.
The international effort meets an urgent need for a sustainable and immediately
scalable solution to reduce carbon emissions in the transport sector. Transport is the
sector that has so far presented the biggest mitigation challenges. It accounts for
approximately 23% of energy-related greenhouse gas emissions in the world,
according to the IPCC.
Biofuels are an excellent way to reduce carbon emissions. Several independent studies
indicate that cellulosic biofuels reduce CO2 emissions by up to 90% compared with
petrol.
Since they can be mixed with petrol in significant proportions with no impact on
engines or the existing distribution network, ethanol or other advanced biofuels can
represent an immediate low-carbon large-scale solution.
Cellulosic biofuels and other advanced low carbon fuels can be produced with no need
of additional land or water, as they use agricultural waste and significantly increase
any crop's productivity per hectare. Advanced biofuels can also generate income in
rural areas and reduce food costs, thus increasing productivity in the field.
Brazil has already started discussing the creation of the Biofuture Platform with over
20 countries, including the US, Canada, Italy, the United Kingdom, France, Nordic
countries, China, India, South American and African countries. This Platform will
provide a forum for governments, the private sector and international funding
organisations to discuss technical challenges, public policies and other topics related to
the bioeconomy, so as to consolidate biofuels as a sustainable and viable solution to
contribute towards achieving climate change targets.

Ministry of the Environment, Ministry of Mines and Energy,


Ministry of Foreign Affairs and Secretariat for Social
Communication International Area Presidency of the
Federative Republic of Brazil

BNDES improves renewable electric energy financing conditions


The National Development Bank (BNDES) has approved new financing conditions for
the electricity sector that have been effective since October this year. The changes
reflect BNDES's strategy for the sector, developed in partnership with the Ministry of
Mines and Energy and Aneel. These changes aim at contributing towards expanding
alternative energy sources in Brazil's energy mix, as well as directing investment
towards projects with high social and environmental returns.
In this context, BNDES has increased its share in financing solar energy from 70% to upto-80% in Long Term Interest Rates (LTIR), maintained its up-to-80% share in energy
efficiency projects, and defined the same share for efficient public lighting systems.
BNDES also maintained its current up-to-70% share in LTIR for all other alternative
energy sources: wind, SSH, biomass and co-generation.
In line with the goal of stimulating alternative private funding in the composition of
new credit, BNDES has reduced its share in investments in large hydroelectric power
plants from 70% to up-to-50% in LTIR.
The general conditions, that will apply to all segments in the energy sector, allow
BNDES to subscribe up to 50% of the value of debentures to be issued by the
borrowing company; establish a minimum Debt Service Coverage Ratio (DSCR) of 1.3
for energy generation, and 1.5 for energy transmission; and require that at least a 20%
share comes from investors' own resources. BNDES's total support, including financing
and debentures, cannot be higher than 80% of the financed assets' full value. The
spread will be 1.5% for all segments, and no bridge loans will be granted.
Priority is given to solar energy, which is reflected in better financial conditions. As this
technology is still in its initial stages of development in the country, it requires
incentives to reach economies of scale and the gains associated with technology
dissemination, with more competitive prices.
With regard to energy efficiency, including investments for the modernisation of
industrial equipment, facilities and processes, the priority assigned by BNDES derives
from the need to increase energy savings in the country, as well as improve the
services offered and environment protection.
The reasons to finance efficient public lighting systems include saving energy and
improving people's quality of life in areas such as public security, road safety and nighttime leisure. In addition, it plays an important role in urban economic development
and job security and creation, as it influences the performance of local trade and
services. Before the change, BNDES's financing conditions for these investments would
be defined on a case-by-case basis in the calls for tenders.
Changes in the conditions to support energy transmission and distribution are based
on the premise that it is a regulator's duty to ensure returns that reward investors for

Ministry of the Environment, Ministry of Mines and Energy,


Ministry of Foreign Affairs and Secretariat for Social
Communication International Area Presidency of the
Federative Republic of Brazil

the risks they run in a project, while, at the same time, ensuring appropriate consumer
prices. That is why the new conditions expand the private sector's share in financing
these two segments.
For energy distribution, funding has been maintained at up-to-50%, with a reduction in
the LTIR share from 70% to 50%. For energy transmission auctions, BNDES has
adopted an innovative approach, linking financing to market costs (instead of LTIR),
with longer terms (20-year amortisation in the PRICE system, instead of 14 in the CAS
system), and an up-to-80% share in the total financing.
This proposal opens doors for the issuance of infrastructure debentures with financing
terms of approximately 10 years. In this context, in order to encourage the issuance of
debentures, BNDES's credit value will be calculated using a minimum 2.0 Debt Service
Coverage Ratio (DSCR), while the global indebtedness limit (BNDES + other creditors)
will be given by a minimum 1.5 DSCR.

AGRICULTURE
In 2009, during the 15th COP in Copenhagen, Brazil presented a paper developed by
Embrapa scientists that eventually led to the Low Carbon Agriculture Plan (the ABC
Plan, in the Portuguese acronym). The ABC Plan was launched in July 2010 and has
already invested R$ 13.2 billion in 28,500 contracts with local farmers, covering a total
area of 6.8 million hectares. According to the Productive Systems Sustainable
Management Coordination Unit, which is linked to the Secretariat for Social Mobility,
Farming and Cooperatives, the ABC Plan promotes agricultural sustainability and is in
tune with the National Policy on Climate Change.
The ABC Plan includes seven programmes, six of which focus on mitigation
technologies, while the seventh deals with climate change adaptation actions:
Programme 1: Recovery of degraded pastures;
Programme 2: ICLF and Agroforestry systems (AFSs);
Programme 3: No-Tillage Systems;
Programme 4: Biological Nitrogen Fixation (BNF);
Programme 5: Planted Forests;
Programme 6: Animal Waste Treatment;
Programme 7: Adaptation to Climate Change.

Ministry of the Environment, Ministry of Mines and Energy,


Ministry of Foreign Affairs and Secretariat for Social
Communication International Area Presidency of the
Federative Republic of Brazil

Of the six technologies developed under the ABC Plan, the most complex is the ICLF,
where farmers work on crop-livestock integration and maintain forest areas, ensuring
food security, biodiversity preservation and protection against effects brought about
by climate change. In addition to raising productivity without increasing deforestation
and the area used for agriculture, the ICLF technology ensures animal well-being and
agriculture adaptation to climate change.
Researchers' initial estimate was that the new technology would reach over 5.9 million
hectares once the programme was implemented. But they were surprised with the
results, which revealed that 11.5 million hectares are already using the ICLF
technology. In addition, farmers' income and resilience increased, with a larger
number of people remaining in rural areas.
The ABC Plan is one of Brazil's main public policies aimed at food production and
farmers' adaptation to climate change. In the 2015/2016 harvest year, the Ministry of
Agriculture, Livestock and Food Supply (MAPA, in the Portuguese acronym) allocated
R$ 2 billion in rural credit lines to the ABC Plan. These lines finance technologies such
as the Recovery of Degraded Pastures (RDP), ICLF, No-Tillage System, Animal Waste
Treatment (AWT), Biological Nitrogen Fixation (BNF) and Planted Forests (PF).
A comparison between 2015/2016 and 2014/2015 shows a retraction in the number of
contracts under the ABC Plan. In the previous period, contracts totalled R$ 3.6 billion.
According to the Productive System Sustainable Management Coordination Unit, the
drop to R$ 2 billion is in line with the retraction of credit in the economy as a whole.
Other factors that also contributed to this result include increased production costs
and higher interest rates for this type of financing. The credit retraction under the ABC
plan became even more evident in 2016. From January to October 2015, the funds
used totalled R$ 1.8 billion, whereas from January to October 2016, they reached only
R$ 1.4 billion, which represents a 21% decrease.
On the other hand, the 2015/2016 cycle showed a 24% increase in the average value of
contracts compared to 2014/2015. The state of So Paulo, for example, increased its
contracted value for Animal Waste Treatment by over 5,500%. In Maranho, the
amount contracted for Planted Forests grew 1,100%. And in Roraima, the contracts for
the Recovery of Degraded Pastures increased by 1,400%. The North region registered
an increase of over 200% in the sums contracted for ICLF.
From January to October 2016, the adoption of ICLF in the North region of Brazil is
worth noting, with a contract value growth of around 1,025%. On the other hand, the
South region led the growth of No-Tillage System contracts, with a 23% increase in the
period.

Ministry of the Environment, Ministry of Mines and Energy,


Ministry of Foreign Affairs and Secretariat for Social
Communication International Area Presidency of the
Federative Republic of Brazil

BRAZIL'S TRACK RECORD IN FIGHTING CLIMATE CHANGE

National Policy on Climate Change


In 2008, Brazil launched its National Climate Change Plan. The Plan is the strategic
guidance document covering government actions on climate change. It represents the
macro-plans for the National Policy on Climate Change, systematising the
decentralised implementation of several climate change mitigation and adaptation
initiatives in the country.
Through this instrument, Brazil aims at stimulating the development of actions in line
with global efforts to fight climate change related problems, in addition to encouraging
the creation of a domestic environment that allows the country to prepare for new
challenges in this area.
In 2009, Brazil passed a law creating the National Policy on Climate Change (PNMC, in
the Portuguese acronym), in line with the country's voluntary commitment to reduce
greenhouse gas emissions between 36.1% and 38.9% by 2020, as informed to the
Framework Convention. PNMC instruments include the National Climate Change Fund,
Brazil's Communication to the UNFCCC, and the Sectoral Climate Change Mitigation
and Adaptation Plans.
The National Policy on Climate Change is based on a coordinated government strategy.
Therefore, the responsibility for developing and managing mitigation and adaptation
actions is shared by all political bodies and public administration agencies, which are
bound to uphold the principles of precaution, citizen participation and sustainable
development.
Thus, the nine existing sectoral plans are coordinated by their respective sector
ministries. Each coordinating ministry may invite or request support from other
ministries or agencies to deliver the actions included in their specific plans.
The Sectoral Climate Change Mitigation and Adaptation Plans and the Action Plans for
Prevention and Control of Deforestation in the Biomes, as well as their respective
coordinating bodies, which currently integrate the National Policy on Climate Change,
are:

Action Plan for Prevention and Control of Deforestation in the Amazon


Coordinated by the Ministry of the Environment;

Action Plan for Prevention and Control of Deforestation in the Cerrado


Coordinated by the Ministry of the Environment;

Decennial Plan for Electric Energy Expansion Coordinated by the Ministry of


Mines and Energy;

Ministry of the Environment, Ministry of Mines and Energy,


Ministry of Foreign Affairs and Secretariat for Social
Communication International Area Presidency of the
Federative Republic of Brazil


Sectoral Climate Change Mitigation and Adaptation Plan for the Consolidation
of a Low Carbon Economy in Agriculture Coordinated by the Ministry of Agriculture,
Livestock and Food Supply and by the Ministry of Agrarian Development;

Sectoral Steel Plant Emission Reduction Plan Coordinated by the Ministry of


Industry, Foreign Trade and Services;

Sectoral Transport and Urban Mobility Plan for Climate Change Mitigation
Coordinated by the Ministry of Transport and the Ministry of the Cities;

Sectoral Health Plan for Climate Change Mitigation and Adaptation


Coordinated by the Ministry of Health;

Sectoral Climate Change Mitigation Plan for the Consolidation of a Low Carbon
Economy in Manufacturing Coordinated by the Ministry of Industry, Foreign Trade
and Services;

Low Carbon Mining Plan Coordinated by the Ministry of Mines and Energy.

From 2007 to 2011, some Brazilian states also developed legal instruments and
governance mechanisms focused on climate change, and some even created their own
State Climate Change Forums. In order to promote federative harmony in this area, the
federal government started strengthening discussions with the states through several
mechanisms, such as the REDD+ Task Force and the Climate Change Federative
Coordination Forum.
From 2005 to 2012, Brazilian emissions dropped by 41.1% from 2.04 billion tCO2e to
1.2 billion tCO2e. This reduction was mainly due to the decrease in deforestation rates
in Brazilian biomes, particularly the Amazon.
Brazil's track record with regards to climate change policy illustrates the country's
constant effort to further expand its contribution towards achieving the Conventions
goals, as well as the global long term objective of limiting temperature rise by the end
of this century to 2o C above pre-industrial levels.
Brazil's NDC for the Paris Agreement represents a progress in relation to the countrys
current actions, both with regard to its coverage and its ambition level. Therefore,
these actions will be reviewed so as to reflect this new Agreement and NDC context. At
the same time, Brazil's NDC indicates that emissions should be compatible with the
fulfilment of social and development needs. This reflects the Convention's principles,
which advocate that developing countries' priorities should be poverty eradication and
sustainable development promotion. By committing to an absolute mitigation
contribution for the whole economy, Brazil has adopted a much more rigorous
contribution approach compared to its pre-2020 voluntary actions.

Ministry of the Environment, Ministry of Mines and Energy,


Ministry of Foreign Affairs and Secretariat for Social
Communication International Area Presidency of the
Federative Republic of Brazil

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