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illuminem summarizes for you the essential news of the day. Read the full piece on Japan Times or enjoy below:
🗞️ Driving the news: Brazil has launched its carbon trading market but excluded agribusiness, which accounts for 74% of the country's emissions
• The cap-and-trade system will regulate only 16% of Brazil’s emissions, covering sectors like energy and industry
• Critics argue this omission weakens efforts to curb deforestation and agricultural emissions
🔭 The context: Brazil’s carbon market law, signed in December 2024, aims to provide legal certainty and attract investment in forest conservation projects
• Agribusiness leaders opposed emission caps, claiming measurement challenges, despite research advancements
• Meanwhile, states like Pará and Tocantins plan to sell over $600 million in jurisdictional offset credits
🌍 Why it matters for the planet: Excluding agriculture leaves Brazil’s largest polluter unregulated, limiting the market’s climate impact
• However, companies and governments are increasing investments in forest conservation, offering an alternative income source for the Amazon
• The system could still reduce deforestation by funding nature-based solutions
⏭️ What's next: Brazil’s carbon credits may soon be sold internationally, with countries like Switzerland potentially buying them for climate commitments
• Experts hope future regulations will bring agribusiness into the market to enhance emission reductions
• The upcoming COP30 climate summit in Brazil could influence further reforms
💬 One quote: "We've missed the opportunity to bring agribusiness to a regulated sphere, which not only limits emissions, but also promotes sustainability." — Gabriela Savian, Deputy Director, Amazon Environmental Research Institute (IPAM)
📈 One stat: Brazil’s cattle industry and deforestation contribute to 74% of the country's total emissions
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