Governance and Low Carbon Policy in Brazil Ronaldo Seroa da Motta Climate Change: Corporate Responsibility and Market Mechanisms Wednesday, November 3, Sao Paulo, Brazil. Tivoli São Paulo-Mofarrej Hotel

Brazil has made great advancements in climate change policy National, state and municipal inventories Emission targets at federal, state and municipal levels Sectoral targets and plans Proposals for voluntary carbon and REDD markets Amazon Fund and National Technological Fund Forums, Networks, Commissions and Committees National Policy on Climate Change (Law 12187) And governance of regulatory decisions ?

Governance Issues Are the proposed instruments articulated with targets and plans? What is the policy making governance structure to orient their application? What is the governance structure responsible to enforce, supervise an monitoring them?

Governance in Law  Art. 7 o, recognizes current policy making institutions: Comitê Interministerial sobre Mudança do Clima; a Comissão Interministerial de Mudança Global do Clima; Fórum Brasileiro de Mudança do Clima; a Rede Brasileira de Pesquisas sobre Mudanças Climáticas Globais - Rede Clima; Comissão de Coordenação das Atividades de Meteorologia, Climatologia e Hidrologia.  Law also reckons economic instruments from several official agencies to support sectoral plans But it does not indicate regulator activities

Regulatory Agency on Climate Change Investments requires stability on regulatory enforcement Instruments application requires monitoring capability Agency would be the executive power in articulating and enforcing policy instruments So regulator must be technically capable and autonomous: – to reduce capture from government and regulated agents – to assure autonomous decisions on instrument application – to promote accountability

Agency´s Functions Normative functions  Matching up economic instruments and sectoral plans  Enforcement of economic instruments  Coordination of national inventory and registry  Standardization of validation practices in MDL, REDD and other mechanisms  Promotion and supervision of carbon and REDD markets and alike Monitoring functions  Follow up of targets and plans  Supervision of economic instruments, verification and validation practices  Supervision of carbon and REDD market practices

Main Conclusions  Brazil has already set a great deal of policy initiatives towards low carbon economy  Funding of low carbon investments needs a credible and stable regulatory framework  Current PNMC (Law12187) can be improved by:  Aligning economic and sectoral plans  Differentiating policymaking from regulator power  Creating an autonomous and technically oriented regulatory executive agency