As a non-Annex I country, Brazil’s participation in the United Nations Framework Convention on Climate Change (UNFCCC) and the Kyoto Protocol focuses on the Clean Development Mechanism (CDM). Among other opportunities, the CDM stipulates that developing countries may obtain foreign investments to implement clean energy, emission reductions and carbon sink projects in exchange for emission credits granted to the developed countries making the investments. There is also an opportunity for developing countries to implement “unilateral CDM projects” without the participation of developed nations.
Law No. 12,187/2009 sets forth the National Policy on Climate Change (Política Nacional sobre Mudança do Clima or PNMC) and its voluntary commitment to reduce greenhouse gas emissions by 2020 at a range between 36.1% and 38.9%. The plan defines actions and measures to mitigate the effect of climate change. It has specific objectives, which are as follows: (i) promoting energy efficiency in the economic sectors by constantly searching for better practices; (ii) keeping the high share of renewable energy in the electricity matrix; (iii) encouraging a sustainable increase in the share of biofuels in the national transport matrix and working towards the structuring of an international market of sustainable biofuels; (iv) seeking a sustained reduction of deforestation rates in all Brazilian biomes to reach zero illegal deforestation; and (v) encouraging reforesting and forestation activities under the CDM. The law states that plans for reduction per sector, including the construction sector, may be established by regulation.
Federal Decree No. 7,390 of 9 December 2010 stipulates that public policies and governmental programs must always ensure that applicable policies are compatible with the PNMC. To achieve the target set for 2020 regarding the reduction of greenhouse gas emissions, the decree considers, among other projects, the expansion of hydroelectric and other renewable energy supply, as well as the reduction in the annual rating of deforestation in the Amazon by 80% and in the Cerrado biome by 35%.
Brazilian states and municipalities are following the lead of the federal government by enacting regulations related to climate change. Fifteen states have enacted laws defining mechanisms to mitigate greenhouse gases and adapt to their negative effects. Some of them, such as Paraíba, São Paulo and Rio de Janeiro, have adopted voluntary targets. In the municipality of São Paulo, Municipal Law No. 14,933/2009 established a target of 30% reduction of greenhouse gas emissions in relation to the 2005 measurements. The construction sector was mentioned as one of the sectors that should focus on reaching that target.
To provide other examples, the municipality of Belo Horizonte contemplated sustainable buildings in its plan to reduce greenhouse gas emissions, while in 2007, the municipality of Rio de Janeiro created a certification called “Selo Verde,” aimed at certifying buildings considered extraordinary in terms of sustainability.
More recently, the Brazilian Nationally Determined Contribution (NDC), updated in 2023, established that Brazil must reduce its emissions by 48% by 2025 and 53% by 2030, compared to 2005 emissions.