Brazil's Ambitious Green Growth Plan for 2035
Recent reports and studies have underscored Brazil's climate-related vulnerabilities and the need for substantial investments in sustainable practices. An International Monetary Fund (IMF) study emphasized the susceptibility of Brazil's agriculture and hydropower sectors to climate variability, particularly frequent droughts and extreme weather events. The IMF recommends enhancing the resilience of the Amazon through fiscal incentives and investments in sustainable land-use practices, as well as promoting climate-smart agriculture. Additionally, Brazil has the potential to become a leader in the global green economy by exporting green goods and expanding its role in green product production.
A World Bank report highlights the challenges emerging economies face in financing low-carbon, climate-resilient investments. In Emerging Market and Developing Economies (EMDEs), less than 5% of bank portfolios are allocated to these investments, with over a quarter offering no climate financing. The report calls for the adoption of green and sustainable taxonomies, which are currently underutilized in EMDEs compared to advanced economies. Strengthening bank buffers, conducting stress tests, and implementing various debt management tools are recommended to bolster climate-related lending.
The Climate Observatory network's study indicates that Brazil needs to cut its greenhouse gas emissions by 92% by 2035 to contribute fairly to limiting global warming to 1.5 degrees Celsius. This target involves reducing emissions from 2.4 billion net tons in 2005 to an annual limit of 200 million net tons. Key objectives include achieving zero deforestation by 2030, restoring native vegetation, transitioning to renewable energy, adopting low-emission agriculture practices, and improving waste management.
Meanwhile, the Catalan Tourist Board and Catalunya Convention Bureau (CCB) hosted Meet Cataluny 2024, focusing on sustainability in business events. The event included over 1,500 business meetings and highlighted the region's diverse business opportunities. Concerns about the social impact of overtourism were also raised, with Barcelona's mayor announcing a ban on foreign tourists renting apartments from 2028.
In another development, Sberbank discussed green technologies with BRICS representatives, highlighting climate change as a significant risk for the next decade. Digital solutions could reduce greenhouse gas emissions by 20% by 2050, but require international cooperation for widespread implementation. The estimated cost of investments in decarbonization and green technologies is $9.5 trillion per year. The sustainable development agenda, including responsible finance and ESG investments, plays a crucial role in addressing these challenges.
