Emissions Trading Worldwide

Brazil — São Paulo
under consideration
São Paulo was the first Brazilian state to adopt subnational climate
change legislation in 2009. The policy establishes an economy-wide
emissions reduction target and focuses on the energy,
industrial processes, solvents, agriculture, and waste sectors. São
Paulo has also established a GHG inventory. In 2012, the state
announced plans to establish an ETS. However, the plan was put
on hold for an undetermined time in 2014.
background information
GHG Reduction Targets By 2020: 20% reduction from 2005 GHG levels.
other information
Institutions involved The State Fund of Pollution Prevention and Control
(FECOP), Secretariat for the Environment of the State of Sao Paulo, Companhia
Ambiental do Estado de São Paulo (CETESB), Brazilian Mercantile & Futures
Exchange (BM&F), São Paulo Stock Exchange (Bovespa) and the Centro de
Estudos em Sustentabilidade Getulio Vargas (GVCes)
Overall Ghg Emissions (excl. LULUCF) 139.8 MtCO 2 e (2005)
OVERALL GHG EMISSIONS BY SECTOR
MtCO 2 e
14.7 % 21.3 % 6.7 %
57.2 %
Industrial processes (20.6)
Agriculture 1 (29.8)
waste (9.4)
Energy (80.0)
1 Excluding emissions from organic soils.
Chile
under consideration
Under the PMR, Chile received funding to develop a roadmap for
the design and eventual implementation of an ETS for GHG mitigation
in the energy sector in March 2013. However, it subsequently
shifted policy priorities towards the implementation of a carbon
tax. The roadmap includes necessary institutional arrangements,
regulatory options, economic impacts and technical requirements
for an MRV framework to track GHG emissions that would fit both
a carbon tax and an ETS.
In September 2014, as part of a broader fiscal reform Chile
approved the carbon tax for thermal power generators with a thermal
input equal to or above 50 MW. Power plants based on biomass
are exempted. From 2017 on, emitters will have to pay USD 5
(EUR 4) for related CO 2 emissions; the tax level for particulate matter,
NO x and SO 2 emissions that are also covered by the tax is yet
to be determined. In the longer run, Chile is still considering the
transition to an ETS.
In addition to its mandatory mitigation policies, Chile has
a track record of activities in the voluntary carbon market.
Established in 2009, the Santiago Climate Exchange provides
a local platform for trading voluntary GHG reductions. In addition,
the Chilean government established a “Platform for the
Generation and Trading of Carbon Credits from the Forestry Sector
in Chile” in January 2013. The platform works in cooperation with
Verified Carbon Standards, a major GHG program in the global voluntary
carbon market.
background information
Overall Ghg Emissions (excl. LULUCF) 91.6 MtCO 2 e (2010)
OVERALL GHG EMISSIONS BY SECTOR
MtCO 2 e
6.1 % 15.1 % 3.9 % 50.9 %
1.3 %
Industrial processes (5.6)
Agriculture (13.8)
waste (3.6)
Energy (excl. transp.) (46.6)
fugitive emissions,
Solvents & other (1.2)
Transport (20.8)
22.7 %
GHG Reduction Targets By 2020: Under the UNFCCC and conditional to
external support, Chile has pledged to reduce projected BAU emissions by
20% compared to 2007 levels. By 2030: 30% reduction of emissions intensity
compared to 2007, in terms of CO 2/unit of GDP. Conditional to international
funding, 35–45% reduction of emissions intensity compared to 2007, in terms
of CO 2/unit of GDP.
other information
Institutions involved Ministry of Energy, Ministry of the Environment,
Ministry of Finance, Inter-Ministerial Committee on Climate Change
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