AMA | Environmental Agents To Develop Personal Carbon Credits In Brazil

The process of reverse logistics is set to advance in Brazil, as indicated by the publication in the Official Gazette of a Federal Decree.

Winner of the Climate Smart Cities Challenge program - promoted by UN-Habitat and Viable Cities (Swedish Government Innovation Agency) - in collaboration with startups Ambiente Livre, Nudge, and Smart Green Station - the AMA Platform (Environmental Agents) is developing the first certified carbon protocol for individuals in Brazil. The initiative comes from an organic waste composting program to be developed in two communities in the city of Curitiba, Paraná, where the municipality issued a challenge to make these areas carbon neutral.

Earlier this year, Decree 11,413 was published in Brazil, establishing the Certificate of Reverse Logistics Recycling Credit, the Certificate of Packaging Structuring and Recycling, and the Certificate of Future Mass Credit. These are mechanisms to verify environmentally sound waste disposal.

The certificates can be traded to demonstrate compliance with reverse logistics obligations required by law. They will be issued by a managing entity that must be previously accredited by the competent authority. Companies involved in the collection, sorting, recycling, or other environmentally appropriate final disposals of waste will be able to acquire these certificates to prove the proper disposal of these materials.

Carbon Credits

Carbon credits are financial instruments created to incentivize the reduction of greenhouse gas emissions. The carbon credit market can help finance sustainable development projects in developing countries and promote the transfer of clean technology.

Each carbon credit represents the reduction or removal of one metric ton of CO₂ or its equivalent in other greenhouse gases. These credits can be traded in carbon markets, where companies and governments can buy and sell credits to meet their emissions reduction goals or generate profits.

For credits to be generated, projects must be registered and undergo independent verification and validation processes to ensure that greenhouse gas emissions reductions or removals are real.

The Carbon Market in Brazil

The carbon market moves around 100 billion dollars annually worldwide. Brazil has a billion-dollar potential, with estimates suggesting it will generate over 300 billion dollars by 2050.

The Brazilian carbon market is based on the mechanism of Certified Emission Reductions (CER), which was created under the Kyoto Protocol and is regulated by the United Nations Framework Convention on Climate Change (UNFCCC). CER allows companies and countries that surpass their emissions reduction targets to sell carbon credits to those unable to meet their goals.

Carbon Credits for Individuals

Through the purchase of carbon credits, individuals can also offset their emissions and contribute to mitigating the impacts of climate change. It is important to note that when buying carbon credits, it is necessary to verify the reliability of the company or organization intermediating the purchase. The credits acquired should effectively represent emissions reductions or mitigation.

But the proposal being implemented by AMA goes in another direction. The AMA platform aims to mobilize individuals in reducing their carbon footprint by offering them a financial incentive for environmental actions proposed in-app. According to studies and validated tests, this engages users in more sustainable behaviors, such as reducing energy consumption, using public transportation, choosing more sustainable products, and, especially, sending organic waste for composting.

How much does a carbon credit cost?

The price can vary greatly depending on the market it is traded in and the type of credit. In general, it is determined by supply and demand, influenced by government policies, environmental regulations, corporate climate actions, and investments in greenhouse gas emission mitigation projects.

In the voluntary carbon credit market, where companies and individuals can buy credits to offset their greenhouse gas emissions, prices can range from a few dollars to over 50 dollars per metric ton of CO₂ equivalent. In the regulated market, where companies and governments are obligated to reduce their emissions, prices can be higher and established through emissions trading systems such as the European Union Emissions Trading Scheme.

It is important to note that the price of carbon credits can be affected by factors such as the quality of emission mitigation projects, independent verification and validation of emissions reductions, and the socio-environmental impact of the project.