Experts warn that the carbon market must guarantee environmental integrity to fulfill its function.
São Paulo, Sep 4 (EFEverde).- The carbon market, conceived as a mechanism to combat climate change, runs the risk of becoming a mere economic transaction if its environmental integrity is not guaranteed, experts warned Thursday during the Third Latin American Green Economy Forum, organized by the EFE Agency in Brazil.
According to Shigueo Watanabe Jr., a physicist and contributor to the NGO Climainfo, the purpose of the carbon market is to incentivize global emissions reduction, not perpetuate its existence as a financial mechanism. He believes its effectiveness lies in the fact that it becomes unnecessary once climate goals are met.
"If it works to achieve the goals he wants, it ceases to exist. I need the carbon market so everyone can reduce their emissions. When everyone reduces theirs, it will no longer be necessary," the specialist stated.
Green finance as a driver of the transitionAt the panel, which also addressed green bonds and international funds as drivers of the ecological transition, André Godoy, executive secretary of the Brazilian Development Association, highlighted the role of development and public banks in green financing.
"Between 2020 and 2023, development institutions mobilized nearly R$2 trillion in sustainable financing," he noted. He also explained that this volume of resources demonstrates the potential of this sector to accelerate the transition.
Godoy also presented concrete examples, such as the "Eco Invest" auction, which allows banks to raise funds for green projects, and the sovereign wealth fund of the Brazilian state of Espírito Santo, which uses oil royalties to finance decarbonization. He indicated that this model could be replicated in other states or even nationwide.
Available capital, insufficient projectsFor her part, Amanda Frizzo, a specialist from the Amazônia +21 Institute, offered a closer look at what's happening in the Amazon region. She noted that there is plenty of capital available, but few projects are yet ready to receive it.
Consequently, he stressed the need to structure them appropriately to attract investment. This way, international resources could be translated into concrete results in the protection of the forest and the sustainable development of local communities.
Frizzo also highlighted the use of so-called blended financing as a key tool for reducing risks and attracting private investment. In his view, this formula can be decisive for Amazonian projects to gain the trust of international markets.
A key forum for the green economyThe challenges facing a green economy were central topics at the 3rd FLEV, which was sponsored by ApexBrasil, Brazil's export and investment promotion agency; Norte Energia, the concessionaire of the Belo Monte hydroelectric plant; and Lots Group, a company that provides solutions for decarbonizing the logistics sector.
The meeting also featured collaborations with Imaflora, the Climate Observatory, and IBMEC University, in whose auditorium the forum was held. In short, the event established itself as a key space for discussing the financial and regulatory mechanisms that can drive a real ecological transition in the region.
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