Clarissa Lins dabates potential opportunities for Brazil and China in the context of climate change
On October 28, Catavento participated in the second edition of the event – “China-Brazil Economic Development Strategic Dialogue”. The event was conceived by Vale, CEBRI, CEBC and Tsinghua University, and counted with the participation of specialists and members from the government of both countries.
The event was structured in two sessions: “The impacts of coronavirus on emerging economies” and “Cooperation for environmental protection in response to global climate change”. The first one focused on the main impacts of COVID-19 on emerging economies, highlighting key opportunities and challenges to Brazil and China economic growth.
The second session analyzed perspectives for sustainable development, exploring potential opportunities for cooperation between companies in both countries. Clarissa Lins, founding partner at Catavento, addressed three main topics that could potentially be explored by these countries in the context of climate change, they were: (i) nature-based solutions; (ii) carbon markets; and (iii) new technologies.
Countries like China and Brazil need different solutions to limit CO2 emissions while promoting economic growth. Among the possible paths, it can be highlighted the protection and conservation of forests. Such projects, known as nature-based solutions, are critical because they allow the absorption of carbon from the atmosphere. Brazil, with its forest vocation (62% of the national territory), can capture several opportunities that arise in this context. In this sense, nature-based solutions will also play an important role to China, supporting the country to achieve its net zero commitment by 2060.
Additionally, carbon markets are also critical on the context of global ambitions to reduce and neutralize emissions. Carbon markets are considered a cost-effective mechanism to promote global decarbonization. While China already has 7 pilots across different provinces, covering more than 450 MtCO2eq in 2020, Brazil is currently evaluating the best carbon instrument to be implemented through the PMR Project. Both countries, therefore, have the opportunity to foment these carbon mechanisms internationally, as well as to strengthen rules that promote transparency and governance.
Carbon mechanisms will benefit the development of new technologies, such as CCS and green hydrogen. Chinese companies are considered global leaders in the development of new technologies associated with climate change (e.g. solar panels and electric vehicles). Many of these companies, in turn, already operate in Brazil and stand out in this regard (ex: China Three Gorges (CTG), State Grid and Build Your Dreams (BYD)).
Therefore, there is a clear opportunity to strengthen bilateral relations based on complementary vocations, towards common goals.