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Edison Intl CEO: Next inspections of Eaton Fire are expected to take place next week
Edison International CEO Pedro Pizarro said at the CERAWeek Conference in Houston that Southern California Edison will start its first physical inspections to examine certain power equipment for possible links with the Eaton Fire, which started in Los Angeles in early 2014. On Jan. 7, several fires broke out in Los Angeles, claiming dozens lives and destroying tens of thousands of homes. This is expected to be one of the most costly natural disasters in U.S. History. Multiple lawsuits claim that SCE power towers and lines in the hills near the Altadena community started the Eaton Fire. Los Angeles County, the City of Pasadena and other entities are suing SCE. SCE, the largest electric utility of Southern California that provides power to approximately 15 million people, will begin sending workers to the towers in the Altadena area on Monday. There will be other inspections including drones. Separately, but parallel, government investigators, attorneys representing fire victims, and SCE are investigating the cause of Eaton Fire. SCE's financial fate will be determined by the official cause of fire and whether or not negligence was involved. Edison International has said that a California-established Wildfire Fund will protect its balance sheet, which Pizarro reiterated on Thursday. (Reporting and editing by Laila Gregorio; reporting by Laila kearney)
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Trump's trade tariffs and threats
Since returning to office in January, Donald Trump has issued numerous tariff threats. These range from a duty on all imports to tariffs targeted at specific countries or sectors. Trump's threats changed over time. This left other nations and business unclear as to what was next. It also created uncertainty for consumers and triggered a recent stock-market sell-off. Here's a summary of Trump’s threats and actions in relation to trade. BROAD TARIFFS Trump's vision is based on a gradual rollout of tariffs that will apply to all U.S. imported goods. Last month, Trump asked his team of economists to devise plans for reciprocal duties on all countries that tax U.S. imports. They also had to come up with ways to combat non-tariff barriers, such as vehicle safety regulations that exclude U.S. automobiles and value added taxes that raise their costs. In the past, tariffs were the primary source of tax revenue in the United States. However, they have been reduced to a small fraction over the last few decades. Economists claim that Trump's policies are inflationary, as businesses who import goods and pay tariffs will pass on the costs to consumers. The potential counter-tariffs imposed by global trading partners on U.S. agricultural and energy exports, as well as machinery and equipment, could escalate into a world trade war and create uncertainty for investors and businesses. Specific COUNTRIES Trump's tariff proposal targets several key trading partners. MEXICO AND CANADA : Mexico and Canada were the two largest trading partners of the U.S. from 2024 to November. Trump's new tariffs of 25% on imports from Mexico, Canada and the European Union took effect on 4 March as a response to migration and fentanyl. Tariffs were imposed on the majority of goods imported from Mexico and Canada. A 10% tax was also imposed on Canadian energy imports. Canada exports mainly crude oil, other energy products and cars and auto components within the North American automotive manufacturing chain. Mexico exports a variety of goods to the U.S., including industrial and automotive products. Canada retaliated with 25% tariffs against US imports worth C$30 billion (US$20.7 billion), including orange juice and peanut butter. Other products include beer, coffee, motorcycles, appliances, and motorbikes. The Canadian government said that it would add additional tariffs to C$125 billion worth of U.S. products if Trump's Tariffs remained in effect in 21 days. This could include vehicles, steel and aircraft, as well as beef and pork. In his address to Congress on March 4, Trump said that further tariffs will be implemented by April 2, including "reciprocal duties" and non-tariff measures to address trade imbalances. U.S. Commerce secretary Howard Lutnick stated that U.S. officials could still work out a partial solution with the two neighboring countries, and added that they need to do more in the fentanyl arena. Trump retracted his planned tariffs of 50% on Canadian steel and aluminum after a Canadian official backed down from plans to impose a 25% surcharge for electricity exported to the United States. Canada, which is the largest foreign supplier of aluminum and steel to the United States (C$29.8 Billion), announced on March 12 that it would impose retaliatory duties on U.S. imports worth C$29.8 Billion ($20 Billion) as a response to Trump’s steel and aluminium tariffs. CHINA: Trump imposed 10% tariffs on all Chinese imports to the U.S. effective February 4, after repeatedly warning Beijing that it was not taking enough measures to stop the flow of illegal drugs into the United States. Trump then added another 10% tariff on Chinese products, which took effect on March 4. This is on top of the 25% tariffs that were imposed during Trump's initial term on Chinese imports. China announced additional tariffs between 10% and 15% on some U.S. Imports starting March 10, as well as a number of new export restrictions for certain U.S. Entities. It then complained to the World Trade Organization about the U.S. Tariffs. China announced on March 12, that it will take all measures necessary to protect its rights and interest, following the increase in tariffs by U.S. president Donald Trump on U.S. imports of steel and aluminum. Trump has said that the EU, and other countries, have alarming trade surpluses against the United States. He said that the products of the other countries will be subject to tariffs, or he would demand they purchase more oil and natural gas from the U.S. despite the fact that U.S. export capacity for gas is close to its limit. In a statement released on 14 February, the European Commission stated that the "reciprocal trade policy" was a step backwards. Trump has threatened to impose a "reciprocal rate" of 25% on European goods. Pharmaceuticals are among the industries that could be affected, since U.S. companies such as Johnson & Johnson, Pfizer, and others have large facilities in Ireland. Ireland is also a leading exporter of medical equipment. In response to the U.S. blanket tariffs on aluminum and steel, the European Union announced on March 12 that it would begin imposing counter-tariffs next month on goods worth 26 billion euros. Trump announced on March 13 that he would impose a tariff of 200% on European wines and spirits as a response to the EU's plan to levy tariffs on American whisky and other products in April. PRODUCTS AUTOMOBILES: Trump announced on March 5, that he would exempt certain automakers, such as the Detroit Three - Ford, General Motors, and Jeep owner Stellantis - from his 25% tariffs against Canada and Mexico if they comply with a free trade agreement. According to these rules, vehicles must contain 75% North American components to be eligible for duty-free entry into the U.S. Some foreign automakers, such as Honda and Toyota with large U.S. manufacturing footprints would also benefit from the exemption, while others who don't comply will have to pay 25% of tariffs. Trump also floated the idea that tariffs of up to 100% would be imposed on other vehicles including EVs. In 2024, the automobile industry will account for more than $200 billion in imports from Canada and Mexico. METALS: Trump announced on February 9 that he would impose tariffs on all imports of steel and aluminum used by automakers and aerospace companies as well as in construction and infrastructure. More than half of the U.S.'s aluminum and steel imports come from Canada, Mexico, and Brazil. Trump ordered on February 25, a new investigation into the possibility of new tariffs on imports of copper to rebuild U.S. manufacturing of this metal, which is critical for electric vehicles, military equipment, semiconductors, and a variety of consumer goods. Just over half of the refined copper that America consumes every year is produced domestically. SEMICONDUCTORS : Trump stated that tariffs would start at "25%" or more, and increase substantially over a period of one year. However, he did not specify when they will be implemented. Taiwan Semiconductor Manufacturing Co., the largest contract chipmaker in the world, produces semiconductors for Nvidia and Apple, among other U.S. customers. In 2024, it will generate 70% of its revenues from North American clients. LUMBER: On March 1, Trump ordered a new investigation into trade that could add more tariffs to imported lumber. This would be in addition to the existing duties on Canadian Softwood Lumber and 25% tariffs for all Canadian and Mexican products. ALCOHOL: Trump threatened on March 13 to slap 200% tariffs in response to the European Union's plan to impose tariffs next month on American whiskey, and other products. This is itself a retaliation for Trump's 25% tariffs that went into effect on steel and aluminium imports. Reporting by Anjana Anil in Bengaluru, Seher Dareen in London, Puyaan, Anmol, Anmol, Anmol, Anmol, Anmol, Anmol, Anmol, Anmol, Anmol, Anmol, An Mol, Anmol, Anmol, Anmol, Anmol, Anmol, Anmol, Anmol, Anmol, Anmol, Anmo, Anmol, Anmol, Anmol, Anmol, Anmol, Anmol, Anmol, Anmol
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Tesla warns of retaliatory duties
Tesla, a major American automaker, has warned it and other exporters that they are vulnerable to retaliatory duties that could be imposed in response to President Donald Trump’s aggressive tariffs. Elon Musk, the CEO of Tesla and a close Trump ally, is leading White House efforts to shrink the federal government. The billionaire is in charge of the Department of Government Efficiency. Tesla's letter is noteworthy because it reflects the concerns of many U.S. companies about Trump's tariffs. The letter is unsigned, but on letterhead of the company. It's not known who wrote it. Tesla stated that it was important to make sure the Trump administration’s efforts to resolve trade issues “do not unintentionally harm U.S. companies." It stated that it wanted to avoid the retaliation it experienced in previous trade disputes which led to increased tariffs on imported electric vehicles into countries subjected to U.S. duties. Tesla wrote in a letter sent to the U.S. Trade Representative Office that "U.S. Exporters are exposed to disproportionate effects when other countries react to U.S. Trade Actions." "For instance, previous trade actions by the United States resulted in immediate responses by the targeted countries including increased tariffs for EVs imported to those countries." Trump may impose significant tariffs in April on parts and vehicles made all over the world. Tesla has warned that despite aggressive localization, it is difficult to find certain parts or components in the United States. The automaker said that businesses will "benefit" from a phased-in approach, which allows them to be prepared and take the appropriate compliance and supply chain measures. Tesla didn't immediately respond to an inquiry for comment. In a letter dated on Tuesday, Tesla said that as a U.S. exporter and manufacturer it encourages USTR "to consider the downstream effects of certain proposed measures taken to address unfair trading practices". Autos Drive America is a trade association that represents major foreign automakers such as Toyota, Volkswagen, BMW, Honda, and Hyundai. They warned USTR separately in separate comments about the impact of imposing "wide-based tariffs" on U.S. assembly plant production. The group said, "automakers can't shift their supply chains over night, and cost increases are bound to lead to a combination of higher prices for consumers, fewer models available to them, and the shutdown of U.S. manufacturing lines, which could result in job losses throughout the supply chain."
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Trump escalates trade war by threatening to impose tariffs on European wines and spirits
Donald Trump, the U.S. president, threatened on Thursday to impose a tariff of 200% on wine, cognac, and other alcohol imported from Europe. This opened a new front in an ongoing global trade war which has caused financial markets to be roiled and sparked recession fears. Investors were worried about Trump's threat to impose more trade barriers in the world's biggest consumer market. Trump's threats came in response to an EU plan to impose tariffs next month on American whiskey and products -- which is itself a response by Trump to his 25% tariffs for steel and aluminum imports, which went into effect on Wednesday. The European Commission did not immediately comment on Trump's tweet. Canada, an ally and neighbor of the United States and the largest aluminum supplier, announced its own countermeasures to Trump's metals duties and took the dispute to World Trade Organization. Trump has repeatedly threatened to impose a variety of trade sanctions since returning to the White House last January, but he has delayed action on most of them. In an Oval Office discussion with NATO Secretary General Mark Rutte, Trump said that he will not back down from the reciprocal tariffs which he had promised to impose against all trading partners by April 2. He said, "We have been ripped of for years and we will not be ripped-off again." Alcohol is proving to be one of the key friction points in the trade war that's brewing. As relations between the United States and Canada have deteriorated, some Canadian retailers have removed American Bourbon from their shelves. Trump has also threatened to annex this country. U.S. Commerce secretary Howard Lutnick said Fox News that he will meet with Canadian Finance minister Dominic LeBlanc on Thursday and Ontario Premier Doug Ford to discuss tariffs. However, he added that the U.S. would be seeking concessions from Canada. He said, "You must remember that Canada is here, relying on our economic strength." "Why do we do all of this business with Canada if the people are not grateful, respectful and don't want it?" The EU has proposed many countermeasures worth 28.31 billion euros (26 billion euro) that would be applied to products with little more than a symbolic value such as bathrobes and dental floss. The proposed duty of 50% on U.S. Bourbon would be a major blow to the industry. Exports have been steadily growing since the United States lifted the tariffs Trump imposed in his first term from 2017 to 2021. According to the Distilled Spirits Council of the United States (a trade group), the EU exported roughly 40% of spirits in 2023. Eurostat reports that the United States is responsible for 31% (or more) of EU wine and spirit exports. Trump's proposed tax of 200% on European alcohol will create additional headwinds for producers such as Pernod Ricard. The company has already reduced its sales forecast due to Chinese duties that were imposed in 2013. The industry calls for more toasts and fewer tariffs Both sides of the Atlantic have urged their leaders on de-escalation. This cycle of retaliation based on tit-for - tat must stop now! SpiritsEurope, a trade association for the industry, said: Trump has filled his administration with people who share these views. Treasury Secretary Scott Bessent stated that he is not concerned about recent Wall Street volatility, as the Trump administration has its sights set on a long-term transformation of U.S. economics. He said that the EU would be more affected by a trade conflict, since it is more dependent on exports to America. He said, "I would advise these government leaders to realize that they are losing this argument from an economic standpoint," on CNBC. Investors, businesses, and consumers have been frightened by Trump's threats. Jets, coffees, clothing, automobiles, and packaged food producers are among many businesses that have scrambled to evaluate their operations in light of Trump's actions. Tesla, the company owned by Trump advisor Elon Musk argued to U.S. Trade officials in a letter that the trade conflict could make the U.S. a target of retaliatory duties. Tesla, a U.S. exporter and manufacturer, encouraged USTR to take into account the downstream effects of certain proposed measures taken to address unfair trading practices in a March 11 letter. Some economists claim that the uncertainty is a threat to the U.S. economic health and increases the risk of a recession. A poll conducted by /Ipsos on Wednesday revealed that 70% of Americans believe Trump's tariffs will make purchases more costly. Trump claimed that his tariffs on alcohol would benefit domestic producers. Importers and distributors in the United States said that it would result in lost sales, job losses and closed businesses. Eric Faber is the president of Cutting Edge Selections in Cincinnati. He said that U.S. Wineries wouldn't be able fill the gap, if Trumps tariffs make European wines unaffordable. He said that the higher prices would hurt distributors and restaurants who help U.S. wines reach their customers. He said that it would be "absolutely catastrophic". Reporting by Doina Schiacu, Andy Sullivan, Andrea Shalal and Philip Blenkinsop, in Washington, and by Susan Heavey in Brussels. Additional reporting by David Lawder and Steve Holland; Madeline Chambers; Dominique Patton; Emma Rumney; Tasiilo Humel; Andy Sullivan's writing; Editing and proofreading by Louise Heavens; Bernadette Baum; Mark Porter; Deepa Babington.
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US Treasury confirms that the Russian Energy Financing License has expired
The U.S. Treasury confirmed on Thursday that the license for a winding down of energy transactions between Russian financial institutions and American companies expired this week as planned under strict sanctions imposed during Joe Biden's final days in office. A Treasury spokesperson confirmed that General License 8L expires at 12:01 am EDT on the morning of Wednesday. The Biden administration issued the license on 10 January to clear any remaining transactions, as it had banned energy financing deals between Russian banks including Sberbank and VTB, along with the Central Bank of the Russian Federation. The Biden administration imposed the most severe sanctions on Russia for its oil and gas revenues in response to its invasion of Ukraine. This was done in an attempt to strengthen Ukraine's position during any future peace talks. The sanctions also prohibited dollar transactions with Russian energy companies Gazprom Neft, Surneftegas and 183 vessels which have shipped Russian crude oil. Many of these vessels are part of the shadow fleet - a grouping that includes aging tankers owned by non-Western firms. Scott Bessent, U.S. Treasury secretary, has criticised Biden's sanctions against Russia for being ineffective as they were preoccupied with maintaining low oil prices. In an email, the Treasury spokesperson stated that the Trump administration is "focused on ending the fight and encouraging negotiations to end war." "We will continue to implement sanctions which are one of the levers that facilitate these goals." (Reporting and editing by Leslie Adler, Diane Craft and David Lawder)
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Fuel shortage threatens Bolivia's soy harvest, causing farmers to panic
In Bolivia's Santa Cruz farm region, an increasing fuel shortage has begun to affect farmers' abilities to harvest their crops. This is a cause for concern in the country, which is struggling economically and where agriculture plays a major role. Fuel shortages, which have led to long queues at the pumps, are the result of a decline in foreign currency reserves during the past decade, and a local gas production that has reached crisis levels. The government of President Luis Arce is concerned about the situation, and has tried to limit prices by using subsidies. Joel Eizaguirre is a soybean farmer in Santa Cruz, the main farming belt of the nation. We'll be left with producers that will make different choices. It's going affect everyone. Jaime Fernando Hernandez of the oilseed and grain group ANAPO said that if diesel was not available for farm machinery and tractors then a lot of food – including corn, soy and sorghum – could be lost. This would have a ripple effect on the entire food chain, affecting production of chicken, eggs, milk, and livestock. He said that the impact on productivity and food production would be "truly catastrophic". Bolivian government is under increasing pressure because of the fuel and dollar crisis. They have decided to use cryptocurrency for payment and fuel cargoes. The farmer Eizaguirre stated that he would rather pay more to have fuel than not enough. He was referring to a parallel exchange rate of more than 11 bolivianos to the dollar, as opposed to 6.86 at an official controlled rate due to the shortage of hard currency. He said: "I personally would rather pay 11 bolivianos for fuel than not have enough to harvest our grains or be able plant during the approaching winter." Reporting by Santiago Limachi in Santa Cruz de la Sierra and Monica Machicao Editing by Adam Jourdan & Matthew Lewis
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Tariff angst is overshadowing soft inflation as stocks fall sharply and bond prices rise
On Thursday, global equities fell and U.S. Treasury yields also did. This was due to concerns about global trade tensions as well as the impact of inflation and economic growth. Trump warned that the EU would not be able to remove the whiskey surcharges imposed by the United States if it did not do so. The increased tariffs were imposed on Wednesday after Trump's new tariffs on steel and aluminum imports from the United States. The Bureau of Labor Statistics, the Labor Department's Bureau of Labor Statistics, released data on Thursday that showed U.S. Producer prices (PPI), which were expected to rise faster than consumer prices (CPI), actually remained unchanged in February. Tim Ghriskey is a senior portfolio strategist with Ingalls & Snyder, New York. He said that if it weren't for the ongoing trade war, the market would have been up strongly on the inflation data. "Traders have their attention on the trade conflict." Ghriskey said, "It appears that the administration (in the U.S.) is very aggressive. They seem to be committed to the long-term and personalities are unlikely to change their minds in the near future." Bill Adams, Chief economist at Comerica Bank, wrote in a note of research that the outlook for inflation depends more on government policy such as tariffs and deportations, or Department of Government Efficiency (DOGE), than "the data released right now which is looking backwards." At 02:47 pm on Wall Street, the Dow Jones Industrial Average dropped 399.18 or 0.97% to 40,951.75. S&P 500 dropped 51.21 points or 0.91% to 5,548.09, while Nasdaq Composite declined 231.66 points or 1.31% to 17,416.75. The MSCI index of global stocks fell by 6.69 points or 0.81% to 824.16. The pan-European STOXX 600 Index closed earlier down 0.15%, after rising by 0.81% the previous session. The U.S. S&P 500 is down nearly 6% this year. However, European stocks have done better thanks to government plans for defense spending and a possible peace agreement with Ukraine. The STOXX Index is up 6.5% for the year, despite recent drops. U.S. Treasury Yields fell on Friday as falling stocks boosted demand to buy safe haven U.S. Government debt. Trade wars between the United States, and its trading partners are escalating and threatening growth and inflation. The yield on the benchmark U.S. 10 year notes dropped 3.6 basis points from 4,316% at late Wednesday to 4.28%. The 30-year bond rate fell by 2.9 basis points, from 4.631% to 4.6016% late on Wednesday. The yield on the 2-year bond, which is usually in line with expectations of interest rates for the Federal Reserve (Federal Reserve), fell by 4.2 basis points, to 3.953% from 3.995% at late Wednesday. The U.S. Dollar was mixed in terms of currencies. It weakened against the safe-haven Japanese yen, but gained on the Euro and Canadian dollar. The euro fell 0.28% against the dollar to $1.0855, but the dollar dropped 0.34% against the Japanese yen to 147.74. The Canadian dollar fell 0.39% against the dollar to C$1.44 each. The pound fell 0.06% to 1.2952. Oil prices fell on Thursday after rallying on Wednesday due to a bigger-than-expected withdrawal of gasoline from U.S. stocks. Traders weighed macroeconomic worries and demand versus expectation. U.S. crude oil settled at $66.55 per barrel down $1.13 or 1.67% and Brent settled at $69,88 per barrel down 1.51% or $0.07 for the day. Gold prices soared to record levels on Thursday and were just a few cents away from the $3,000 mark per ounce. The momentum was driven by increased tariff uncertainty as well as bets placed on the Federal Reserve's easing of monetary policy. Spot gold increased 1.71% to 2,981.92 dollars an ounce. U.S. Gold Futures increased by 1.51% to $2.983.50 per ounce.
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The GM CEO and Trump met on Wednesday amid the tariff war -- White House
A White House official said that President Donald Trump and General Motors CEO Mary Barra met on Wednesday to discuss the automaker’s investment plans in light of an ongoing tariff battle. After a phone call with Barra and Ford CEO Jim Farley, as well as Stellantis Chair John Elkann, Trump agreed last week to exempt automakers for a month from his 25% tariffs against Canada and Mexico, as long as the comply with free trade rules. Trump said to reporters that GM visited him on Wednesday and "want to invest $60 billion". GM has not yet commented on the meeting. It is unclear when any new expenditures will occur. The White House has been told by automakers that they need to be certain about the tariffs and vehicle emission policies before they make any significant changes in their North American investment plans. Trump imposed hefty tariffs this week on steel and aluminium, impacting products ranging from bulldozers to cars. As exemptions, exclusions, and quotas expired, the metals tariffs increased to an effective 25% increase. The American Automotive Policy Council (AAPC), a group that represents the Detroit Three automakers noted that domestic automakers purchased the majority of their aluminum and steel in North America or the United States, but expressed concern about "specifically revoking the exemptions for Canada" and "Mexico". Stellantis said to its dealers that it was willing to work with Trump to "support further investment in our U.S. Manufacturing footprint, but we need to give ourselves time to make the changes without negatively affecting our business or our customers." Trump also threatens new reciprocal tariffs for April 2, which could dramatically increase the cost of imported vehicles from Japan, South Korea and Europe. In meetings, Trump and Commerce Secretary Howard Lutnick told automakers that they wanted the industry to shift more assembly and part production to the United States.
Brazil's carbon trading takes off but agribusiness is not scrutinized
Brazil sets basic rules on its carbon market
Largest polluters, farmers escape cap to emissions
Protecting natural areas will receive more funding
By Andre Cabette Fabio
The rules don't limit emissions from agriculture, which is the top sector in the country for carbon pollution, accounting for 74% of all emissions.
"We missed the chance to bring agribusiness into a regulated sector, which would not only limit emissions but also promote sustainability," said Gabriela Savian. She is the deputy director of policy at IPAM, the Amazon Environmental Research Institute.
According to Natalie Unterstell of Instituto Talanoa in Brazil, a climate policy think tank, with farmers gone, the new cap-and-trade market for carbon emissions will only cover about 16%.
The regulation, even though it exempts the largest emitters in the country from any responsibility, is expected to provide legal security and encourage carbon projects which protect forests against the pressure of the agribusiness industry.
In cap-and trade systems, the government assigns a limit to each sector's carbon emissions. Companies that exceed this limit can purchase allowances from other companies who still have room.
According to the European Commission, in the European Union's largest cap-and trade system by value, approximately 40% of emissions in aviation, industry, and energy sectors are covered. These emissions are mainly connected to the burning of fossil fuels.
Brazil is different. Its basic carbon market regulations were signed into law by the Brazilian government in December.
The Climate Observatory of the United States reports that its largest source of emissions is its 240-million-strong cattle herd, and the destruction of vast natural areas to make way for pastures and grain fields.
The powerful caucus of agribusiness leaders, who dominate the Brazilian congress, demanded that the farming sector be left uncapped.
They argued that cap-and-trade does not set a limit for agriculture because counting emissions by producers is a difficult technical task, which critics claimed researchers could overcome.
In a statement from 2023, Pedro Lupion, the president of Brazil's Parliamentary Agricultural Front wrote that "no country in the entire world has regulated the agriculture sector due to the lack of a scientifically proven metric".
Funding for Forest Protection
Savian said that as part of their efforts to reduce emissions, the big polluters will become a greater source of funding to forest protection initiatives. This could ease pressure from farms.
She said that, "even though there is no cap on the greatest emitter - deforestation - the cap-and trade system structures the opportunity to fund schemes... that combat deforestation" and "promote regeneration".
A growing number of Brazilian companies and state governments are sourcing carbon credits through forest conservation and restoration projects.
Carbonext is one of these companies, and it runs 11 projects with the help of farmers and communities. It sources carbon from forests covering 322,000 hectares.
These offsets are sold on the voluntary carbon market by companies who wish to compensate their emissions, even if they do not have to.
Carbonext CEO Janaina Dallan expects that in the future she will be able sell credits for companies to comply with the cap-and-trade regulations, giving Amazon a non-destructive alternative to income.
Tocantins, and Para are two Amazonian states that have made strides on the carbon market. They announced plans to sell jurisdictional offset credit worth more than 600 million dollars.
These offsets are sourced from governments who have successfully reduced deforestation within their jurisdictions or captured carbon.
Assets are protected from land tenure issues, which have damaged the reputation of Brazilian private projects, who have operated on land that is disputed, embarrassing the buyers.
These credits are calculated on the basis of each jurisdiction's ability to reduce their deforestation rate, which is a clear indication. Private projects, however, have been accused of obtaining excessive credits through inflating deforestation risks in the areas in which they intervene.
Raul Protazio is the secretary of environment and sustainability for the state of Para. Para hosted the U.N. climate summit COP30 this year.
The COP Climate Summit last year laid the foundation for a United Nations-supervised international carbon market. This has raised expectations for this kind of global cooperation.
(source: Reuters)