Brazil can be the great leader of what we call socio-bioeconomy and has all the conditions to be the first country, among the most polluting, to bring its net emissions to zero, contributing decisively to avoiding the climate crisis. Therefore, it needs to invest in renewable energy, neo-industrialize, seek regenerative agriculture, which brings productivity gains, and the financial sector has to help a lot in this advancement. The person issuing the warning is scientist Carlos Nobre, one of the main global names linked to climate change research.
“It is important that companies can work with ESG metrics. It's not enough to say: I'm doing it, I'm practicing it. There has to be metrics.”
One of the authors of the Fourth Report of the IPCC – Intergovernmental Panel on Climate Change who, together with the group, received the Nobel Peace Prize for their work, Nobre assesses that the floods in Rio Grande do Sul brought an important change in Brazilians' perception of to global warming and that, on the other hand, they must also urgently accelerate projects for resilience to extreme events.
It also draws attention to the fact that the Amazon is very close to the point of no return. If global warming is not controlled, the world in the 22nd century will be practically uninhabitable in tropical regions. Therefore, he advocates that companies of any scale, but especially large ones, begin to demonstrate that they are really moving in the area of ESG in a very sustainable way. His message for corporate leaders who want to move towards combating climate change is encouraging and appealing. From a technological point of view, it is completely possible, but the speed is slow, he says. “Accelerate this speed”, recommends the scientist, who, at the end of May, was announced as a new member of the Planetary Guardians, a study and analysis group on climate action and the protection of vulnerable communities created by billionaire Richard Branson.
Below are the main excerpts from the interview given to Reputation Feed.
How are climate changes impacting companies, in Brazil and globally, and what is the responsibility of the private sector in mitigating the effects of global warming and creating a more sustainable and resilient future?
Climate change is reaching emergency levels. The years 2023 and 2024 are the hottest in the historical record, 1.5°C more, compared to 1850-1900. Extreme events, such as droughts, extreme rainfall causing flooding and landslides on slopes, heat waves, crop failures and fires, have been record-breaking. It is logical that the use of energy from fossil fuels is historically important for the entire business sector. In Brazil, most of this burning of fossil fuels is done by vehicles that use gasoline, diesel and natural gas. Therefore, it is very important that the private sector realizes the importance of combating the climate emergency. Many studies show the risks of exceeding the average rise of 1.5°C in the planet's temperature, and, if emissions remain high, we could reach up to 2.5°C more by 2050, an unacceptable risk for the planet. And the private sector has a lot to do with the issue: globally, it is the one that demands the most energy. More than 70% of emissions come from burning fossil fuels – generating electricity in power plants using coal, oil, natural gas. One of the sectors that emits the most in Brazil is agribusiness, because almost all deforestation is to expand the activity. Furthermore, agribusiness has a lot of methane emissions, especially in livestock farming.
And what can be done in practice to mitigate the climate crisis?
We have a huge challenge to eliminate deforestation and also to reduce many emissions from agriculture. Brazilian agribusiness must accelerate the transition to so-called regenerative agriculture, which shows the feasibility of moving towards a much more resilient activity. We have alternatives such as the so-called Low Carbon Agriculture Plan, launched in 2010, but the number of farmers and ranchers who have joined is very small, just 10%. We are the fourth largest food producer in the world, after China, India and the United States. Regenerative agriculture has systems that make the impact of agriculture and livestock on climate emergencies smaller. When you have the natural biome, the forest, close to agricultural crops, close to pastures, there are many more pollinators, the general temperature is lower, the climatic balance is much better and these climatic extremes are more resistant.
Will the disaster caused by the floods in Rio Grande do Sul influence projects and investments to reduce global warming in the country? As?
This extreme weather event in Rio Grande do Sul brought an important change in the perception of most Brazilians about why extreme weather events are rapidly becoming more frequent due to global warming caused by human action through the continuous increase in greenhouse gas emissions. Therefore, it is essential, across the planet, to quickly reduce emissions of these gases. Extreme events in RS must also accelerate projects and investments to urgently increase the resilience of millions and millions of Brazilians to all these climate extremes. Many millions of Brazilians will have to be moved to homes in areas outside of places where extreme rains cause riverbank flooding and landslides on steep slopes. It is also necessary to implement so-called “urban sponges”, with extensive restoration of biomes along river banks and hillsides, to store water and reduce soil erosion.
“If we don't control global warming, the world in the 22nd century will be different, practically uninhabitable in tropical regions. Even mid-latitudes will be uninhabitable in summer. It's not just an economic factor. Science has advanced a lot. In 20 years, the price of electricity from photovoltaic panels fell by 80%. Today, in tropical countries like Brazil, it is much cheaper than electricity using natural gas or other fossil fuels. Wind energy is also much cheaper. Brazil has enormous potential for several other forms of energy.”
How can business leaders address climate change skepticism among some stakeholders?
How do you deal with this in practice? It's not simple. But the fact is that, when you practice regenerative agriculture, productivity increases. With more productivity, profits increase. In numerous countries and here in Brazil, the banking system is already beginning to finance this type of agriculture.
How can companies connect sustainability and combating climate change goals with their business strategies?
The corporate sector must understand that ESG is essential. If we do not control global warming, the world in the 22nd century will be different, practically uninhabitable in tropical regions. Even mid-latitudes will be uninhabitable in summer. It's not just an economic factor. Science has advanced a lot. In 20 years, the price of electricity from photovoltaic panels fell by 80%. Today, in tropical countries like Brazil, it is much cheaper than electricity using natural gas or other fossil fuels. Wind energy is also much cheaper. Brazil has enormous potential for various other forms of energy, biofuels, green hydrogen and also so-called ocean thermal conversion plants, for example.
And how can companies communicate their climate efforts transparently and authentically, avoiding greenwashing?
It is important that companies can work with ESG metrics. It's not enough to say: I'm doing it, I'm practicing it. There has to be metrics. The measures cannot be something that the company does and does not have proof. It is very important that they really trust this market of companies that emerge to measure ESG.
What does the company gain from being sustainable?
The world of financing is starting to move more in this direction, even though the total resources allocated, for example, to the fossil sector, are more than 10 times that allocated to renewable energies – solar, wind, green hydrogen. It's trillions and trillions of dollars a year. The vision of the future of the world among young people is very different from that of my generation. Young people are becoming very concerned about the unsustainable world of the present for the future. Unfortunately, it may still take decades, but I expect that these young people will greatly change the ESG vision, implementing it mainly in investments. We even joke and talk about Greta's generation (Greta Thunberg, environmental activist), because when these young people start to reach leadership positions, both in the political and, mainly, in the corporate sphere, they will quickly change.
“Young people are becoming very concerned about the unsustainable world. Unfortunately, it may still take decades, but I expect that these young people will greatly change the ESG vision.”
What is the future of the Amazon and what does the region have directly to do with the climate issue?
The Amazon is very close to the point of no return. Research that I was the first scientist to carry out – the first article was published in 1990, 34 years ago, and the second, in 1991 – warned of the risk: look, if they continue to deforest, the Amazon will pass the point of no return , more than 50% of the forest disappears. Since then, science has advanced a lot in this area. Today, it shows that the southern and southeastern regions of the Amazon are on the brink. If we don't stop deforestation and restore the forest, more than half of the Amazon will become a degraded open-air ecosystem, throwing tons of carbon dioxide into the atmosphere and preventing the increase in the planet's average temperature from limiting itself to 1. 5°C, the temperature targeted with global efforts against the effects of global warming. So, we have to save the Amazon, eliminate deforestation in most Amazon countries, with Brazil leading the way.
As?
The great potential of the Amazon is that the financial sector is looking to maintain forest products, agroforestry systems. We have the greatest biodiversity on the planet, we can create a bioeconomy with the standing forest, generating hundreds of products. Brazil can be the great leader of what we call socio-bioeconomy.
know more
- A regenerative agriculture is a set of agricultural and livestock practices that seek to regenerate ecosystems, improve soil health and promote the sustainability of food production.
- O ABC Program (Low Carbon Emission Agriculture) was established in the 2010/2011 Agricultural and Livestock Plan to finance appropriate practices, adapted technologies and efficient production systems, capable of contributing to the mitigation of greenhouse gas emissions.
- A sociobioeconomics It is a relatively new concept that has been gaining strength in the context of sustainable development, especially in the Amazon region. It differs from other economic models that prioritize the extraction and exploitation of resources, often leading to deforestation and loss of biodiversity. Access to financing, adequate infrastructure and a market for sustainable products are among the challenges.
- Neoindustrialization It is the process of modernization and evolution of the industry, emphasizing innovation, environmental commitment and integration with international production chains. Neoindustrialization connects globally with modern industrial policies, often mission-oriented, which are strategies designed to respond to society's major challenges, such as combating climate change or access to quality healthcare.
The economic value of biodiversity in Brazil is very small, equivalent to 7% of Brazilian GDP. We have to neo-industrialize, and the financial sector has to help a lot with this. We have to develop this new bioeconomy of Brazilian biodiversity products.
What are your expectations regarding COP 30, in 2025, which will be held in Belém do Pará, in November?
If we continue to reduce deforestation, accelerating this in 2024 and 2025, and bring more farmers and ranchers into regenerative agriculture, with the financial sector financing; if Brazil and other countries in the Amazon region do this; we, collectively, will arrive at COP 30 in this direction. We will be the world leaders in combating the climate emergency. This is my optimistic expectation for COP 30.
What message would you give to business leaders who want to build a solid and sustainable corporate reputation, committed to combating climate change?
These leaders must seek ESG methods with very rigorous metrics, which are not greenwahsing, with policies for rapid transition to a more sustainable world in two directions. One of them is to reduce emissions, which is technologically feasible. Several large companies have already set targets to cut emissions by 50% by 2030, replacing fossil fuels with renewable forms. The other direction, valid mainly for agribusiness, is to increase the resilience of production. Without this, we will face risks even in food production for us Brazilians. This is the message for corporate leaders who want to move towards combating the climate crisis: from a technological point of view, it is completely possible, but the speed is slow. Accelerate that speed.
Clovis Malta is a journalist
Clovis.malta@ankreputation.com.br