Dear partners and clients,
Together, we saw the growth of the voluntary carbon market in 2022. As we predicted, the last year was a time of many advances, and the trend is an increasing acceleration of this agenda, fruit of the awareness that decarbonization must go from companies’ plans and into action.
The initiatives are many and the urgency is high, which is why the private sector has anticipated legal requirements, creating solutions to meet the market – which has already understood the importance of forest conservation and restoration.
Following the global trends of carbon markets, last year we diversified our portfolio and had a leap in areas conserved under our management from our REDD+1 and AR2 Projects and, consequently, carbon credits generated from these mechanisms.
It is worth mentioning that the Legal Reserve Compensation is another important measure that contributes to forest conservation and to achieve the goals proposed in the Paris Agreement. The evolution was also notorious in this sphere. We saw several states advancing and fulfilling their commitment in the implementation of Environmental Regularization Programs, with São Paulo, Bahia and Mato Grosso do Sul standing out.
Following demand, the largest Brazilian Forest Bank has also grown and next year will have the ‘CRL Portal’ – a search tool for areas according to state, biome, modality and price range per hectare, which is currently in testing phase.
We will face a new government at the Federal level and the promise of a more attentive look at environmental issues. The process of regulating carbon credits in Brazil already started promises to soon institute the National System for Greenhouse Gas Emissions Reduction (Sinare), with the objective of serving as a single central registry of emissions, removals, reductions, and compensations of greenhouse gases and of acts of trade, transfers, transactions, and retirement of certified emission reduction credits.
We were present at COP-27, the UN event that took place in Egypt where we participated in raising discussions about carbon credits. In our view, the serious and committed institutions understood the importance of participating in the transformation, planned and disclosed their actions to become net zero and, from now on, we expect the beginning of the taking of action so that decarbonization, in fact, comes out of the paper.
There were so many relevant events that it was difficult to summarize. We know that this evolution of the carbon markets and our participation in it would not be possible without the commitment of our partners, customers, and employees. Therefore, thank you very much for another year of achievements, which leaves us with the hope and optimism that we are only at the beginning of this journey towards the decarbonization of the economy and towards a cleaner and more democratic future.
We will continue to be judicious and follow everything closely, as we always have, keeping you updated through our monthly market newsletters or whenever you need our team of experts. Together, we make a difference.
An excellent 2023 to all!
Cofounder and CEO
Biofílica Ambipar Environment
1REDD+ — Reducing Emissions from Deforestation and Forest Degradation plus conservation of forest carbon stocks, sustainable management of forests, and enhancement of forest carbon stocks.
2AR (Afforestation/Reforestation) — an approach based on the increment of carbon in forest biomass by planting, increasing, or restoring vegetation cover (forest or non-forest) through planting, seeding, or human-assisted natural regeneration of woody vegetation.