The government released its new NDC, outlining a new climate goal for the country to reduce economic-wide greenhouse gas (GHG) emissions by 59 %—67 % by 2035. With the NDC, Brazil recently reported a significant goal in forest conservation by decreasing 31% of deforestation in Amazon forests over the past year, the largest drop in 15 years. 

Both these announcements align with the global trend toward sustainability, which may potentially attract more capital in green investments globally. Private equity/credit firms, asset managers, and impact investors may focus on sectors that deal with deforestation, sustainable agriculture, and renewable energy to leverage the potential opportunities. 

Let’s explore the new goals set by Brazil in detail. 

Key aspects of the new climate goals of Brazil

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  The new NDC marks the second commitment under the Paris Agreement. The previous target aimed for a 53% reduction by 2030, while the new goals represent a significant increase to cut 59%—67%.

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  In absolute terms, the new climate targets translate to a reduction of 850 million to 1.05 billion tons of carbon dioxide equivalent by 2035. 

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  Brazil's new goals are expected to be announced by President Lula at the COP 29 climate conference, which will be held from November 11 to 22 in Baku, Azerbaijan.

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  The updated BDC of Brazil covers all sectors of the economy for emissions reduction, including initiatives targeting deforestation, renewable energy, and sustainable agriculture.

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  To support the bold climate goals, Brazil is implementing many strategic initiatives, such as climate plans, ecological transformation plans, and pacts among the three branches of government. The climate plan is a roadmap for emission reduction, the ecological transformation is a framework for promoting low-carbon development, and finally, the pact is a collaborative effort for ecological transformation.

Concerns about the new climate goals of Brazil

While the country promotes out-of-the-line climate goals, some environmentalists and critics worldwide have expressed concerns about the targets' adequacy in truly addressing climate change. The contradiction arises from the use of different modeling approaches by environmental institutes. The models adopted and the lack of specificity in the document.

Andreas Sieber, associate director for global policy and campaigns at 350.org, said, “Brazil’s initial 2035 climate target is minimally sufficient but falls short of true ambition. This announcement, while a step forward, underscores both progress and the challenges inherent in climate diplomacy. In an uncertain global landscape influenced by shifting U.S. climate policies, Brazil stands poised to assert its leadership in advancing stable, multilateral climate action and advocating for the renewable energy transition.”

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