To give a response to the international market on the Brazilian performance in relation to the environment, Brazil intends to become the pioneer in the methane credit market of the world. Gas is seen as one of the biggest villains for the greenhouse effect because it is the main contributor to ozone formation at ground level. The creation of an unprecedented market comes at a time when the country is viewed with mistrust abroad in relation to sustainability, especially in matters involving Amozonia.

The Minister of the Environment, Joaquim Leite, will announce the project on Monday (21), in a ceremony that will take place in the Planalto Palace within a larger program, the National Strategy for Reducing Methane Emissions, in partnership with the Ministry of Mines and Energy (MME).

At the Glasgow Climate Conference (COP26) last November, more than 100 countries signed a global commitment to reduce methane emissions by 30% by 2030. Brazil is one of the signatories, but it has always been known that the government's assessment is that the country would not need to expand its action in this direction to contribute to the effort of the planet.

"Based on the national solid waste policy, the january solid waste legal framework and the methane agreement we signed at cop, we will launch the Methane Zero program," the minister said. The creation of the market should be formalized through an ordinance. "When you have this ordinance, the market happens. I did this with Floresta + Carbono", he recalled, mentioning the program that provides for the generation of carbon credits through the conservation and recovery of native vegetation.

"In 2019, the value was $2 and without demand. Today it is US$ 14 and has no project that is not 100% sold on Amazon. With methane the same thing will happen," he predicted.

The bill will be presented to U.S. Special Climate Envoy John Kerry at a ministerial meeting at the end of the month at the Paris-based Organization for Economic Cooperation and Development (OECD). "Brazil will be the first country that has done anything for methane after the Climate Conference," he said.

The largest program, the National Strategy for Reducing Methane Emissions, focuses on reducing emissions from organic waste. At first, five main activities will be benefited: poultry, pigs, landfills, sugar and dairy products. In addition to the institutional issue through ordinances and decrees (as should be the creation of the methane market) and the prioritization of projects in these five segments, there will be economic incentive.

Reduction of more than 30% of methane in Brazil

Milk's projection is that the program can reduce the emission of Brazilian methane by more than 30%. To stimulate producers through economic incentive, the five activities will be part of the Special Incentive Regime for Infrastructure Development (Reidi). Among other points, Reidi has five years of federal tax exemption for the purchase of infrastructure equipment and encourages specific financing for biogas and biomethane based on greenhouse gas reductions, as well as reduction of PIS and Cofins.

"Brazil's bioenergy generation potential in relation to biomethane exploited to transform fuel energy is 2%," the minister said. This is equivalent, according to him, to all natural gas production of the Brazilian pre-salt, or 120 million cubic meters per day, which would correspond to four times the Brazil-Bolivia gas pipeline.

Incentives are needed in the government's assessment because, to transform waste from garbage into biogas, it is necessary to build plants. These are projects that cost from R$ 500,000 to R$ 200 million. "The plant does the biodigestion work of that waste, which turns into biogas at first (with 54% purity) and then goes to a filtration system that purifies this gas to 94% purity," he said, after visiting producers and having contact with initiatives that are already underway. The product of this process can be used in tractor engines, trucks and other heavy vehicles.

It is planned, at the ceremony, a displacement of the minister by the Esplanade in a vehicle powered by this alternative fuel and less polluting. "These are profitable climate solutions," he said.

Source: Canal Rural