Rio de Janeiro's Carbon Market

Given the federal government's intention to build a national carbon market, the State of Rio de Janeiro, in interaction with representatives of the federal government, has been working to create a carbon market pilot in Rio Janeiro.

In April 2010, the government signed the Law 5690, creating the State Policy on Global Climate Change and Sustainable Development. The law directly mentions the industry and the need to "encourage the use of more efficient equipment and processes, their recycling and replacement, and the reuse of materials, as well as the control of emissions and carbon footprint." The Law also mentions that the State will promote the development of the carbon market.

The Law was regulated by Decree 43.216 establishing a goal (tCO₂eq/R$), where the intensity of 2030 is expected to be lower than the intensity of 2005. However, the targets established in the decree are related to public illumination, recycling, sanitation, and others. After public debate, the State Plan on Climate Change was approved. It incorporates a carbon market as a tool to allow meeting the goals established for the industrial sector (thermal energy, chemical, petrochemical, cement, iron and steel, oil and gas, ceramics, pulp and paper, among other sectors of less impact).

In 2012, the government of the State of Rio de Janeiro, in partnership with BVRio, elaborated the specifications of a GHG emission reduction trading system for the state's industrial sector (Carbon Trading System). This system is ready and can be activated immediately when it is decided to adopt this type of emission control measure at state level.