In March 2021, Law 14120 was published. It establishes the definition of guidelines to implement mechanisms that are capable of considering environmental benefits in the electricity sector. These guidelines are scheduled for March 2022 and this is why E+ Energy Transition produced the study “Proposals for the definition of guidelines for the incorporation of environmental services in the electricity sector.” This has recommendations based on 4 pillars to support the establishment of a mechanism focused on the reduction of greenhouse gas (GHG) emissions.

The main messages are:
– As the emissions from land use begin to decrease in Brazil and, consequently, the participation from the industry and the energy sector increases, the pricing of the GHG emissions in Brazil becomes increasingly strategic;
– The pricing policy of the GHG emissions needs to reflect the integration of the energy and climate policies, signaling the environmental costs and carefully assessing its impacts on people and companies;
– It is necessary for the electricity sector to seek neutrality of GHG emissions;
– The guidelines for the incorporation of the environmental services in the electricity sector, in order to guide the design of an effective mechanism of carbon pricing in Brazil, should be based on these four pillars: Integration, Governance, Economic Efficiency and Gradualism.

On February 2, E+ held the first webinar of the year to discuss the “Valuation of the environmental services in the electricity sector.” It involved Emílio Matsumura, executive director of the E+ Energy Transition Institute, Giovani Machado, director of Economic, Energy and Environmental Studies at the Energy Research Company (EPE) and Joisa Dutra, director of FGV/CERI. Watch it here and read the entire study.