Climate Policy Engagement Analysis
Climate Policy Engagement Overview: The Brazilian National Confederation of Industry (CNI) seems to actively engage on climate policy in Brazil, broadly supporting the need to reduce emissions in line with the IPCC, yet taking oppositional positions on several key climate regulations in the EU and Brazil. The association advocates for new exploration and production of fossil gas in Brazil.
Top-line Messaging on Climate Policy: The Brazilian National Confederation of Industry (CNI) seems to broadly support the need to reduce emissions in its top-line messaging, but takes less positive positions on the need for government regulation on climate change. In a May 2024 press release the association seemed to support limiting warming to 1.5°C. In a presentation to the Brazilian Senate in April 2024, CNI supported a new Industrial Policy in Brazil which promotes the decarbonization of the economy and an energy transition, as well as a sustainable agroindustrial sector. However, in a public consultation comment in August 2023, the association seemed to emphasize concerns regarding impacts on competitiveness relating to climate-related trade policy, and did not seem to support environmental subsidies. Furthermore, in comments during a debate with policymakers in May 2023 in Brazil, the association seemed to question the effectiveness of environmental public policy. The President Robson Braga de Andrade did not support the inclusion of sustainability criteria in the EU-Mercosur Agreement in June 2023. In a March 2024 press release CNI supported COP30 taking place in Brazil.
Engagement with Climate-Related Policy: The Brazilian National Confederation of Industry (CNI) does not seem to support several specific climate regulations in Brazil and the EU. In a meeting with the EU Commission in January 2023, sourced from a Freedom of Information Request, CNI did not seem to support the EU’s Carbon Border Adjustment Mechanism, stating it is discriminatory. The association frequently supported a regulated emissions trading system in Brazil in 2022-24, for example, in an August 2024 position paper. However, it strongly advocated for the inclusion of carbon offset credits in the policy such as in [1256135 feedback to Brazilian policymakers in May 2023. In input to a policymaker debate in May 2023, the association supported regulation to scale up the offshore wind energy industry. However, in a July 2024 public audience with the Brazilian Mines and Energy Commission, CNI advocated to remove wind and solar subsidies without clearly supporting maintaining subsidies for new renewable energy technologies. In a June 2024 press release CNI supported an energy efficiency program Aliança 2.0 led in coordination with the Brazilian Ministry of Mines and Energy.
Engagement with Land Use Climate-Related Policy: The Brazilian National Confederation of Industry (CNI) supports the protection of forests and carbon sinks in Brazil with some exceptions. In a debate in the Brazilian Chamber of Deputies the association supported the Brazilian Forest Code to protect forest resources and sequester carbon. The CNI has consistently supported legislation to prevent illegal deforestation, for example, in a May 2023 position paper. However, in an August 2023 press release, the CNI supported expanding public forest areas available for development through forest concessions, and although it supported recognizing land use rights, it appeared to support them to designate land for specific uses. Furthermore, in a meeting with the EU Commission in January 2023, sourced from a Freedom of Information Request, the association did not appear to support the EU Deforestation Regulation.
Positioning on Energy Transition: The Brazilian National Confederation of Industry (CNI) does not appear to support the energy transition in Brazil. The association has consistently supported new exploration and production of fossil fuels, for example, the President Ricardo Alban supported new infrastructure in August 2024. Furthermore, in input to a debate in the Brazilian Chamber of Deputies in May 2024 CNI opposed including oil in the ‘Selective Tax’ reform which proposed to tax environmentally harmful products. In an July 2024 press release the association seemed to support weaker hydrogen legislation in Brazil, advocating to increase the low-carbon hydrogen threshold to 7kg/CO2 from the proposed amendment of 4kg/CO2. In an August 2024 press release the CNI supported the inclusion of low-carbon hydrogen projects in a policy which was originally proposed to promote renewable hydrogen only, emphasizing the unfeasibility of hydrogen produced with renewable energy. However, in a comment to a debate in the Energy and Environment Ministry in July 2024, CNI supported scaling up renewable energy.