Clean Development Mechanism / Programmes of Activities and New Market-based Mechanisms, Brazil

Project description

Title: Clean Development Mechanism / Programmes of Activities and New Market-based Mechanisms, Brazil
Commissioned by: German Federal Ministry for the Environment, Nature Conservation, Building and Nuclear Safety (BMUB) 
Country: Brazil (Germany, India, MENA, Uganda)
Lead executing agency: Brazilian Ministry of the Environment (MMA) 
Overall term: 2008 to 2013

Context

When the project began in 2008, Brazil demonstrated great potential for implementing initiatives as part of the Clean Development Mechanism (CDM). The CDM is a mechanism defined in the Kyoto Protocol which allows industrialised countries to meet their contractually agreed reduction targets by purchasing emission credits or investing directly in developing countries and emerging economies. Brazil is now the third largest CDM market after China and India.

When the project began, Brazil’s CDM potential was still largely untapped. Working together with GIZ, the National Confederation of Industry Brazil (CNI) helped to address this issue by implementing measures aimed at raising awareness and sharing information. In this context, GIZ helped to establish partnerships between German and Brazilian companies by matchmaking between project executing agencies and credit purchasers.

A global trend towards decreasing CRM demand was evident worldwide, and Brazil was no exception. Since mid-2010, GIZ has therefore been expanding its support of the Brazilian Ministry of the Environment’s Fundo Clima (National Climate Fund) and advising the Brazilian Ministry of Finance on the analysis of economic pricing instruments in the carbon sector.

Objectives

Greater use is made of the Clean Development Mechanism (CDM) in Brazil. Political dialogue on climate-related topics has been intensified.

Approach

On behalf of the German Federal Ministry for the Environment, Nature Conservation, Building and Nuclear Safety (BMUB), GIZ implements CDM units in Brazil as well as India, the MENA region and Uganda.

The project’s services include:

  • providing guidance for German companies with regard to the CDM market in Brazil;
  • developing a pool of project proposals which can be used by German companies and the Kiwi Climate Change Fund, acting on behalf of the BMUB;
  • organising matchmaking events to bring together German and Brazilian companies;
  • providing support in the transfer of technology through such instruments as development partnerships with the private sector;
  • providing training for key actors in the Brazilian CDM market in cooperation with CNI;
  • advising the Fundo Clima;
  • advising partners on the analysis of economic pricing instruments in the carbon sector.
The German Chamber of Industry and Commerce in São Paulo (AHK SP), the second largest in the world, is an important partner. The project works with the AHK SP to produce the newsletter ‘CDM Clipping’, which provides regular information on the Clean Development Mechanism and Brazil’s national climate policy.

Results achieved so far

German companies obliged to meet reduction targets are now in a better position to assess the business potential of the Brazilian CDM market.

By working with the CNI, the initiative reaches decision-makers in key industrial sectors. Companies in the Brazilian private sector are receiving advice on the CDM.
Brazil. The project works with the Chamber of Industry and Commerce in São Paulo to produce the newsletter ‘CDM Clipping’ (excerpt)

The Fundo Clima is developing a range of instruments to improve the process of selecting and evaluating project proposals.