Is Brazilian legislation prepared to protect the economy from climate change?

mudanças climáticas

In recent times, we have seen an intensification of extreme weather events. Almost every day we come across news about droughts, forest fires, heat and cold waves, floods, landslides, cyclones, tornadoes and windstorms. In Brazil alone, according to the World Meteorological Organization (WMO), 12 climate change-related events were recorded in 2023.

The historic flooding of Rio Grande do Sul is currently the most visible outcome of this crisis. The damage caused has already reached R$12.2 billion, according to a report recently released by Civil Defense.

Law is emerging as a fundamental pillar in the search for mitigation and adaptation to the effects of climate change. The subject is broad and begins with the question of international legal responsibilities. The United Nations Framework Convention on Climate Change (UNFCCC) recognizes the historical responsibility of developed countries for greenhouse gas emissions.

This is very important for negotiations on reduction targets and funding for developing countries which, according to the Intergovernmental Panel on Climate Change (IPCC), will need US$127 billion a year by 2030 and US$295 billion a year by 2050 to tackle climate change.

On the international stage, various countries and international organizations have developed studies and legislation that can serve as a reference for Brazil.

The European Union has some of the most advanced legislation, with the European Green Deal and the European Climate Law, which set ambitious targets for reducing emissions and creating a carbon market.

The United States’ Inflation Reduction Act of 2022 includes major investments in clean energy and resilient infrastructure. In addition, some cities and states, such as California, have robust laws to combat climate change.

Canada has implemented the Pan-Canadian Framework on Clean Growth and Climate Change, which includes regulations on emissions, incentives for renewable energy and climate adaptation.

On the other hand, Australia has developed specific strategies to deal with climate risks in sectors such as agriculture and water resources, most notably the National Climate Resilience and Adaptation Strategy.

Finally, there is the Paris Agreement, which sets targets to limit the rise in global temperatures and encourages all countries to develop and implement robust climate policies.

Brazil, in turn, has several laws dealing with the subject, including the National Environmental Policy (No. 6.938/1981), the National System of Nature Conservation Units (Law No. 9.985/2000), the Public Civil Action Law (No. 7. 347/1985), the Forest Code (Law No. 12.651/2012), the Environmental Crimes Law (Law No. 9.605/1998), the National Water Resources Policy Law (Law No. 9.433/1997), the Coastal Management Law (Law No. 7.661/1988) and the National Solid Waste Policy Law (Law No. 12.305/2010).

However, there is still a lot of room in the areas of Civil and Environmental Liability, Environmental Law and Public Policies and Human Rights and Climate that seek to protect society and the economy as a whole from the effects of climate change.

There are several projects in the pipeline. One of the most significant is the Reserve of Resources in the Budget (PLP 146/2021 and PLP 257/2019), which aims to provide funds to finance actions to mitigate and adapt to climate change. The Oil Royalties project (PLS 227/2011) proposes allocating part of these resources to finance the fight against climate change and promote renewable energies.

The National Program to Support Those Affected by Climate Change (Pronamc – PL 2133/2024) seeks to create a system to help people affected by public disasters caused by climate change. The proposal includes financial assistance and support measures for reconstruction and adaptation.

There is also the National Climate Change Fund (FNMC), created by Law 12.114/2009, which is an important financing instrument for projects related to reducing emissions and climate adaptation. By 2024, the fund is expected to exceed R$10 billion.

The issue must include not only the protection of the environment, but also the defense of human rights and the rights of communities affected by climate impacts – such as the right to water, adequate food and safe housing. Court cases have been key, seeking to hold companies and governments accountable for environmental and social damage caused by climate change.

We have an opportunity to promote environmental sustainability and protect the rights of present and future generations. The way forward will require international cooperation, legislative innovation and a renewed commitment to environmental justice to effectively address the challenges that climate change imposes on global society.

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