History of carbon pricing in Brazilian agriculture

Abstract

The objective of this article was to describe an implementation of the main carbon pricing instruments for the agricultural sector in Brazil. We present some aspects on the economic relevance of this sector and the share of its emissions in the country. We also describe a literature review on the international experience of the agricultural sector with the adoption of carbon pricing instruments, focusing on carbon tax initiatives – in Canada (specifically in British Columbia) and France –, and on the emission trade system in New Zealand. The history and evolution as to the discussions on the inclusion of the agricultural sector for the carbon pricing instruments in Brazil are also detailed. Additionally, the private sector initiatives in the creation of instruments that contribute for the emission reductions from the agricultural sector are presented. We observed that the current barriers to the incorporation of carbon pricing instruments for the agricultural sector evidence the need to create new instruments to make this sector less intensive in greenhouse gas emissions.