The Importance of Article 6
A report by the newspaper O Globo discusses Article 6 of the Paris Agreement, which will be the subject of many debates at COP 26, and Brazil's position with respect to this instrument
Another factor involving very important discussions about the Paris Agreement is Article 6, which regulates the Carbon Market – currently among the assets whose prices have risen the most in the global financial markets. One explanation for this is not only the recovery of countries post-pandemic (many are already in this process), but also the larger ambitions assumed around the world to reduce emissions by 2030 and the commitments to achieve carbon neutrality by 2050.
Brazil, once again, appears to be heading in the opposite direction. The government says that companies that adapted in order to obtain CDMs (Clean Development Mechanisms) had no more buyers after the European Union stopped acquiring them in 2012, and therefore is asking that these credits are counted retroactively in Article 6. Gustavo Pinheiro, the coordinator of the iCS Low Carbon Economy portfolio, explains that this does not make sense in a report by O Globo:
"This claim is the result of a lobby by those who certified credits for the Kyoto market and were unable to sell them. The scientific community believes that this makes no sense because Article 6 does not even have established rules and there will be different markets, with a new standard of accuracy. Kyoto has several flaws, including producing credits without any environmental backing,” he explains.