By Writing Team
Posted in December 13, 2023
COP 28 in Dubai, United Arab Emirates, concluded on Tuesday, May 12, amidst criticism regarding the priorities. As the United Nations Climate Change Conference wraps up, both public and private sectors commit to collaborate on global temperature reduction.
However, with Brazil elected to host COP 30, the focus now shifts to how brands can contribute to the country’s environmental goals. Before that, the 2024 edition of the Climate Conference is scheduled for November next year in Azerbaijan.
During COP28, Gerdau participated in four discussions on decarbonization and opportunities in the green economy. “This is one of the most important events in discussions related to climate and combating climate change,” says Pedro Torres, Director of Communication and Institutional Relations at Gerdau.
Additionally, Gerdau has been investing in sustainable production equipment and studying the use of high-capacity electric trucks. Currently, over 70% of the company’s steel is derived from recycling programs, converting 11 million tons of scrap into steel.
In Dubai, LATAM also signed agreements to offset 400 thousand tons of CO2 with Future Carbon through carbon credit generation. Over the next ten years, the Itamarati project, part of the airline’s NetZero program, funded the preservation of 22 thousand hectares in the Amazon and Cerrado in Mato Grosso.
According to Marcus Nakagawa, Coordinator of the ESPM Center for Socioenvironmental Development (CEDS), the green economy is feasible. The shift from fossil fuels to renewable sources depends largely, he says, on the interests discussed at COP. “The word ‘elimination,’ eagerly awaited by environmental activists, is not effectively included in the document being drafted,” he points out.
According to the expert, it is essential for small and medium-sized enterprises to be included in sustainability investment assessments. “We need to move from pilot projects and make them mainstream. We have two years for this if companies want to showcase great success at COP 30. Because pilot projects, we have many, but they represent 0.001% of the portfolio,” he opines.
For brands and companies preparing for COP 30 (to be held in Belém from November 10 to 21, 2025), the first step is to try to align business plans with the Sustainable Development Goals (SDGs), says Nakagawa. The 17 SDGs are a set of global targets established by the UN for the expansion of human rights and social equity by 2030.
In addition, Nakagawa emphasizes that brands can create new markets and consumer interest through marketing. “If you’ve developed a demand for products and services, why not do the same for sustainable products? Why not add brand love for this kind of thing?” he highlights.
However, during the early days of this year’s conference, the NGO Alana and the United Nations Children’s Fund (UNICEF) created a campaign with 25 testimonials from children around the world. In the material, which involved Fbiz, children urge brands and companies to take climate emergencies seriously.
In 2020, the World Bank and Brazil launched the Partnership for Market Readiness project. One of the objectives was to support countries in implementing strategies for the creation of regulated carbon markets. In Brazil, the implementation of a regulated carbon market could result in a 2.25% increase in GDP by 2030, as well as more investments and poverty reduction.
In the regulated market, the state establishes which Greenhouse Gas (GHG) emitters should set emission limits, enabling the potential trade of surpluses of these emissions. However, in parallel, the voluntary market develops as an alternative for brands and companies in general. In this segment, credits can be accessed by anyone or any company that has a carbon emission inventory.
According to Annie Groth, Head of Advocacy & Engagement at Biofílica Ambipar, emissions neutralization is a form of immediate climate action, allowing the compensation of residual emissions that are still unavoidable. In this regard, Biofílica Ambipar is one of the companies developing forest carbon projects and other Nature-Based Solutions (NbS). Also known as Nature-Based Solutions, the concept was defined by the International Union for Conservation of Nature (IUCN) and includes ecosystem preservation practices within the green economy. In Brazil, the company partners with various brands such as Latam Airlines, Cielo, Localiza, Natura Cosmetics, Renner, Arezzo, and Banco do Brasil.
“Regarding COP30, we believe the eyes of the world will be on Brazil and the Amazon. It will be a unique opportunity for Brazilian companies to showcase the sustainability of their respective production chains and ‘sit at the table’ for discussions,” she says. In 2023, Biofílica Ambipar signed sales of over 1.2 million carbon credits.