Perspectives on the Implementation of Climate Change Public Policies in Brazil

Abstract

As a developing country, Brazil plays a fundamental role in reducing the emissions of greenhouse gases (GHG) in the world. However, despite participating in several global agreements to reduce pollution levels, the country still needs to effectively implement existing policies. The creation of new mechanisms for sustainable development should be seen as essential to build a culture of preservation of the environment. Climate change influences the society directly, affecting millions of people worldwide due to prolonged droughts, excessive rainfall and snowfall, causing great damage. In this way, society, especially in developed countries, demands the implementation of public policies that provide environmental preservation together with economic development. This study analyzes the perspectives of implementation of public policies in Brazil, capable of promoting the interaction of sustainable development with environmental preservation. The majority of the Brazilian electricity matrix is constituted by hydroelectricity, but incentives exist for generating electricity from other renewable sources such as solar, wind, or the reuse of waste as biomass. The control of GHG emission levels is directly related to the type of energy sources used by a company. Great variations in the prices of these resources can reflect significantly on the cost of production, and in some cases, make the business impracticable. Considering the scenario where large pollutants and companies must set emission reduction targets, the creation of a system for trading greenhouse gas emissions would encourage other companies to reduce their emissions and trade these in a regulated market. This model is similar to the one established by the Kyoto Protocol and reproduced internally in countries such as the U.S.A. and China. New environmental policies, with financial incentives lead company managers to promote the reduction of GHG emissions through innovation/adaptation of processes and products. Economic development that focused on environmental preservation would then be fostered. This would promote the development of a new culture in society, where people would vigorously demand the implementation of green policies in companies. Brazil has the potential to maintain sustainable economic growth through the implementation of existing policies and the creation of new mechanisms, permitting the creation of an internal carbon market, which can also be connected to other markets already consolidated in the world.