Companies are main agents for investment in innovation

The director of the Business Council for Sustainable Development Development (CBEDS), Marina Grossi, explains how the Brazilian industry intends to contribute and benefit from the transition to a Green Economy

Is the Brazilian private sector already seeing the advantageous scenario for the pursuit of a low carbon economy?

Yes, despite the uncertainties regarding the future of the market regulations and pressures. As the main agents to invest in innovation and develop products and services with low carbon emission, the companies are increasing their participation in the negotiation towards a low carbon emission economy. After the goal assumed by Brazil to reduce the emissions up to 38,9%, the Government tends to prioritize initiatives, like the Clean Development Mechanism or the Reducing Emissions from Deforestation and Forest Degradation (REDD).

What would it be a good agreement at the COP 15, considering the sectorial arrangements?

According to the position paper elaborated by the members of the CEBDS Thematic Chamber of Energy and Climate Change, the sectorial arrangements should not overlap or clash the sovereign decisions of each country. They should be able to impulse the balanced development of the sectors to which they apply, and should not represent barriers to the national industry. Furthermore, performance patterns should be established for each sector, in terms of greenhouse gases per produced unit, and limit the negotiation of the certified emission reduction to the scope of the sector.

"The companies are the major responsible for effectively promoting the changes" Marina Grossi

What would be the strategy most adequate to the Brazilian reality? What about more energetic efficiency in the production, towards a new industrial pattern?

It is not only about the energetic efficiency that reduces the costs and increases the profit margin, but also about investing in innovation and in the green jobs.

What are the incentives that should be considered in the public policies for the decarbonization of the industry?

Also according to the position paper, we defend the transparency and the formal and structured involvement of the companies and other social actors in all stages of the discussion of the Brazilian strategies and positions; the effective concatenation of the policies and regulations in the federal, state and municipal level; the creation of a federal organism for the coordination of the actions in the area, including the matters regarding the adaptation to the effects of climate change; the availability of financial resources with good prices.

According to the sector, what does it need to be changed regarding the Clean Development Mechanism?

We focused in two topics. The first is about the need to rediscuss the criteria of “financial” and “regulatory” addicionality. The current criteria, in our view, limit the potential of the Mechanism. We suggest a return to the initial spirit of the Kyoto Protocol, in which the determinant factor for the characterization of the addicionality is the project’s potential to promote the sequestration or reduction of emissions that would not happen without these. The second topic is the non limitation of credits in the area of energetic efficiency to the current capacity of installations, but also the amplification implemented based on more efficient technology. The adoption of this practice, in our view, would stimulate the improvement of companies’ performance and, in the case of Brazil, would make feasible the effective use of the undeniable competitive advantages that we enjoy in many industrial sectors and in our energetic matrix.

How does the sector plan to contribute to Brazil’s voluntary commitments assumed recently by the Federal Government?

The companies are the major responsible for effectively promoting the changes. Despite the uncertainties regarding the future of the market regulations and pressures, the current context is already enough for the companies to obtain the present benefits for managing its impacts on clime. The results can be divided in two categories: tangible returns for reduction of costs or increase of revenues, or intangible returns that are related to the reputation improvement, risks minimization and a better preparation to face future restrictions to the emissions.

What is the participation of the CEBDS in the Copenhagen Conference?

The CEDBS was given the right of two presentations in the Business Day, in which CEOs of associated companies will give lectures. In addition to that we will count with a stand as from the second week of the event, and we will participate in the side event organized by the COP, with the theme “Brazil: Contribution towards a low carbon economy”.

Opinions or points of view expressed are those of the interviewee(s) and do not necessarily reflect the official position or policies of the Brazilian Government.

 

December 15, 2009

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