Amid Bolsonaro’s climate inaction, Brazil private sector eyes carbon neutrality

Brazil’s private and public sectors seem to be going in opposite directions when it comes to protecting the environment.

While major companies such as mining giant Vale and cement producer Votorantim Cimentos have announced plans to become carbon neutral, President Jair Bolsonaro continues to tacitly approve of deforestation in the Amazon region.

"We’re seeing a great transformation, mainly from mining companies and firms in basic industries, that are more engaged in reducing their respective carbon emissions, since this has been a growing demand from investors and even banks that finance these companies," Valdir Farias, executive director at mining consultancy Fioito Consultoria, tells BNamericas. 

Votarantim Cimentos unveiled this week its sustainability commitments for 2030, setting a new target for reducing CO2 emissions for the next 10 years to achieve carbon neutrality in its concrete production by 2050.

The company's target is to reduce CO2 emissions per ton of cement to 520 kg by 2030. Votorantim reduced 23% of CO2 emissions per ton of cement in the 1990-2019 period, when volume decline from 763 kg to 591 kg.

To reach the target, Votorantim said it plans to replace fossil fuels used in cement production ovens with biomass and solid waste, while also striving to secure 45% of its electric power supply from renewable energy sources.

"Our sustainability commitments for 2030 are aligned with the best environmental, social and governance practices, known as ESG and converge with our commitment to the Climate Change agenda," said Álvaro Loren, Votorantim Cimentos director of sustainability and institutional relations.

Read our Intelligence Series report on ESG in Latin America

Efforts like those of Votorantim bring new opportunities for renewable energy providers, as more companies seek to transition away from fossil fuels.

Meanwhile, Vale signed a partnership with not-for-profit organization Carbon Disclosure Project (CDP) earlier this month to encourage its suppliers to measure and report their greenhouse gas emissions.

Vale is aiming to become a carbon neutral company by 2050. In May, it announced an investment of US$2bn to reduce its direct and indirect emissions by 33% by 2030. The company will invest the amount in renewable energy projects to reduce carbon emissions by 33% by 2030. CO2 equivalent emissions are then expected to fall to 9.5 Mt compared to 14.1 Mt in 2017.

These steps contrast with the ‘see no evil, hear no evil’ approach from the Bolsonaro administration, which has been roundly criticized by the international community for failing to protect the Amazon rainforest.

Earlier this week, daily O Estado de S. Paulo reported that vice president Hamilton Mourão, who heads a government policy council tasked with protecting the Amazon region, issued an internal report backing the expropriation of land from farmers who set fires for agricultural purposes. The measure, however, was shot down by Bolsonaro, who reportedly said that "expropriation is for a communist or socialist country".

The right-wing Brazilian leader is likely to feel increasing pressure next year, as president-elect Joe Biden takes office in the United States, where Bolsonaro will no longer have his ally Donald Trump to support his anti-environment agenda.