Brazil

Brazil became a CCAC partner in June 2023. It also joined the Global Methane Pledge – of which the CCAC is a core implementer – in November 2021. Brazil initially signed the Kigali Amendment to the Montreal Protocol in 2016 and ratified it in August 2022. It is a party to the United Nations Framework Convention on Climate Change (UNFCCC) and has ratified its instruments (Kyoto Protocol and Paris Agreement).

Brazil has had a National Policy on Climate Change (Law 12,187/2009) since 2009. Among the sectoral plans developed under the National Policy is the Plan for Adaptation and Low Carbon Emission in Agriculture (ABC Plan), established in 2010, which aims to promote the sustainable development of agriculture and the safety and competitiveness of its products. The first phase of the ABC Plan ended in 2020, upon which the second phase (ABC+ Plan) was launched which set new goals for 2020 to 2030. The ABC+ plan's main goal is to promote adaptation to adverse impacts of climate change and to mitigate greenhouse gas emissions (GHGs) in the Brazilian agriculture sector. To do so, the Government is pursuing an integrated landscape approach to increase efficiency and resilience of sustainable farming systems.

Brazil’s sectoral approach to public policy aims to align both productivity and sustainability in Brazilian agriculture by implementing and mainstreaming a package of sustainable technologies. Since its inception in 2010, the ABC Plan and its deliverables contribute to the 2030 Agenda for Sustainable Development, in particular for SDG 2 (Zero Hunger) and SDG 13 (Climate Action). 

Financial support for the ABC+ Plan comes from the Safra Plan credit program. This program directs resources with more favourable conditions towards projects meeting sustainability criteria. The Safra lines of credit have the potential to increase productivity, reduce GHG emissions, prevent and recover losses in agricultural production, to rationalise the use of natural resources and inputs, rehabilitate and conserve soils, to treat agricultural waste and residues, rehabilitate native vegetation, reduce deforestation, help adapt land holdings to environmental legislation, and generate clean energy from land holdings.

The Climate Fund Programme is an instrument of the National Policy on Climate Change. It promotes investment in projects aiming to mitigate climate change and/or adapt to its adverse impact through the National Bank for Economic and Social Development of Brazil (BNDES). Brazil implemented several plans to reduce GHGs within the scope of its Nationally Appropriate Mitigation Actions (NAMAs) in the pre-2020 period. Brazil submitted a Nationally Determined Contribution (NDC) to the Paris Agreement under the UNFCCC in the post-2020 period which includes methane and hydrofluorocarbons (HFCs).

In March 2022, Brazil launched its National Zero Methane Programme (Ordinance 71/2022) under the framework of the Federal Strategy of Incentive to the Sustainable Use of Biogas and Biomethane Decree (No. 11.003/2022). This Programme aims to encourage the development of a sustainable economy, reduce methane emissions, promote a carbon market for methane, and support sectors such as agriculture and livestock, particularly by incentivising in the production and use of biomethane and biogas.

Federal energy policy in Brazil is guided by the 2050 National Energy Plan (PNE 2050) and Ten-Year Energy Expansion Plan (PDE). The PNE 2050 supports expansion of hydropower, oil and gas production, further analysis of renewables, research and development, and improving energy efficiency. These plans are jointly produced by the Brazilian Energy Research Company (EPE) and the Ministry of Mines and Energy.

Brazil has a regulated carbon market for biofuel production. Created by the Brazilian National Biofuel Policy (RenovaBio) in 2017 (Law 13.576), it has been in full function since 2020 and has a total budget of R$1 billion. Biofuel Decarbonisation Credits (Crédito de Descarbonização –  BIO) are generated through the production of biofuels such as ethanol, biodiesel, biomethane, and biokerosene, which fossil fuel companies can buy to meet yearly decarbonisation targets. Decarbonisation targets are set in accordance with the government’s ten-year national decarbonisation target, proportional to companies’ share in the fossil fuel market. Non-compliance with targets by companies makes them liable for financial penalty. In 2021, the BNDES announced a loan scheme for biofuel producers to encourage the development of carbon reduction projects under RenovaBio.

Brazil’s Air Pollution Control Program for Motor Vehicles (Programa de Controle da Poluição do Ar por Veículos Automotores, PROCONVE) was first introduced in 1987 to reduce vehicle air pollution. Brazil also established a National Programme for Control of Air Quality (PRONAR) in 1989 which established strategies for setting national standards for air quality and emissions at source. New light and heavy vehicles must comply with Euro VI standards, with emissions standards gradually increasing in stringency over time. PROCONVE phase L-7 emission standards for light-duty vehicles came into effect on 1 January 2022. In 2025, PROCONVE phase L-8 will require vehicle manufacturers to meet fleet-average emissions limits.

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