Climate News from Governments - December 14
Brazil enacts law on regulated emissions trading and VCM; UK to develop AI solutions for Fusion with IBM; New Zealand allows investing retirement funds into domestic infra
Brazil enacts law on regulated emissions trading and VCM
(December 12) Brazil has enacted Law No. 15.042, establishing the Brazilian Greenhouse Gas Emissions Trading System (SBCE). The law has rules for both - a regulated carbon market with emission limits and a voluntary carbon market. For the voluntary market, rules for the development of state and jurisdictional REDD+ programs have also been included. The system will be fully implemented by 2030, and will not apply to the agriculture sector. The legislation also prioritizes the rights of indigenous and traditional communities to engage in carbon projects within their lands. It also introduces penalties for non-compliance of up to 3% of gross annual revenue for companies, and fines from R50,000 - 20 million for individuals.
(December 3) Brazil's President Lula has announced BRL 546.6 billion in public and private investments for the New Industry Brazil (NIB) Mission 1, aimed at developing sustainable agro-industrial chains. The plan sets goals to increase agro-industry revenue GDP growth to 3% by 2026 and 6% by 2033, alongside goals for increased mechanization and tech adoption in family farming. A decree has been signed to create a National Program for Research and Innovation in Family Farming and Agroecology.
New Zealand allows investing retirement savings in domestic infra
New Zealand has had a voluntary retirement saving scheme, called KiwiSaver, in operation since 2007.
…Employees can choose to contribute 3%, 4%, 6%, 8% or 10% of your gross (before tax) wage or salary to our KiwiSaver account. Employers are required to contribute close to 3% of your gross salary if you contribute.
New Zealand's government has announced reforms to invigorate capital markets and redirect KiwiSaver investments (worth over $120 billion) towards domestic infrastructure and businesses, including renewable energy projects.
There is over $120 billion invested in KiwiSaver. Currently, most of these funds are parked offshore in foreign stock exchanges, generating little good for New Zealand’s economy. Similarly, only around 3 per cent is invested in unlisted assets, compared to around 16 per cent of Australian superannuation funds.
The reforms include making it easier for KiwiSaver funds to invest in unlisted assets and reducing barriers for companies listing on the NZX, including changes to climate-related disclosure requirements to better align with Australia.
New Zealand has also introduced the Resource Management (Consenting and Other System Changes) Amendment Bill to streamline renewable energy project approvals and infrastructure development. The bill establishes a one-year maximum for consenting renewable energy projects, extends renewable energy consent durations to 35 years, and provides 20-year extensions for coastal permits at 13 major ports. The legislation also includes provisions for natural hazard risk management and emergency response.
The UK Government and United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) have launched the ASEAN Green Investment Catalyst (AGIC) initiative with £2.1 million funding to accelerate sustainable foreign direct investment across Southeast Asia. The initiative is part of the broader ASEAN-UK Green Transition Fund worth £40 million (2024-2029) and aims to develop investment-ready projects in green sectors while providing an innovative tool to match projects with investors.
The UK Atomic Energy Authority (UKAEA) and Science and Technology Facilities Council's (STFC) Hartree Centre have partnered with IBM to develop AI-powered design solutions for future experimental fusion powerplants. The collaboration combines UKAEA's fusion expertise and data from JET and MAST-U machines with IBM's high-performance computing and AI capabilities to create foundation models for fusion powerplant design, aiming to deliver commercial fusion by the 2040s.
UK Foreign Secretary David Lammy has announced new partnerships with Caribbean nations focusing on climate adaptation, renewable energy transition, and forest protection during his visit to Barbados and Guyana. The UK will provide funding to help Caribbean countries transition from fossil fuels to green energy resources and implement a new program to combat illegal logging and protect forests. The visit includes assessment of hurricane damage and climate change impacts in the region.
The UK government has published new statutory guidelines for businesses producing and distributing lithium-ion batteries for e-bikes to address safety concerns following multiple fire-related fatalities. The guidelines mandate safety mechanisms for thermal runaway risks and apply to all lithium-ion batteries for e-bikes under the General Product Safety Regulations 2005. The initiative supports the government's broader strategy to promote cleaner transport modes while ensuring product safety.
South Africa, as the incoming G20 Presidency for 2025, has announced plans to focus on sustainable development and climate finance reform. The presidency will emphasize implementing the G20 Roadmap for MDB reform, addressing debt sustainability, and advancing African development through a new G20 Africa Expert Panel. Key events include the 5th Finance in Common Summit in Cape Town and the 4th International Conference on Financing for Development in Spain.
Consolidated by Soumya Gupta (Twitter, LinkedIn).
