Debate on energy transition and carbon markets at the 3rd CPLP Energy and Climate Seminar

After Cape Verde, the CPLP Energy and Climate Seminar Series brought together governments and organizations in Brazil to discuss the energy transition and progress in regulating carbon markets in CPLP member states. The third seminar, which took place on 4th November 2024, at the Institute of Economics of the Federal University of Rio de Janeiro (UFRJ), was promoted by the Government of São Tomé and Príncipe, which holds the Presidency-in-Office of the Community of Portuguese-Speaking Countries (CPLP), together with the Energy Thematic Committee of the CPLP Consultative Observers, coordinated by ALER and the Association of Energy Regulators of Portuguese-Speaking Countries (RELOP).

Mayra Pereira, President of ALER, began her speech at the Opening Session by pointing out that “in African countries, the subject of carbon markets is still at an early stage”. According to the President of ALER, the vast majority have environmental policies and laws, but the legislation around carbon markets is still being drafted. Although ecological, social and cultural diversity can bring together Angola, Brazil, Guinea-Bissau, Equatorial Guinea, Mozambique, Portugal, São Tomé and Príncipe and East Timor, there are some challenges in the carbon market process. For Mayra Pereira, it is necessary to look “through the lens of Afro-futurism” and re-imagine the African continent so that it can have easier access to those markets. To this end, she says it is essential to unite in the development of knowledge and the exchange of experiences. “In Cape Verde [at the 2nd CPLP Energy and Climate Seminar], we started this principle of joint action,” she said. According to the President of ALER, the discussions at that seminar highlighted the importance of a more united Portuguese-speaking Africa, which finds its anchor and basis for partnerships in countries like Portugal and Brazil.

Sandoval Feitosa, President of RELOP, also believes that “Portugal and Brazil play an important role in the process of integration [of Portuguese-speaking countries in the markets]”. Sandoval Feitosa noted that Portugal's strategic location in Europe enables access to financing mechanisms that boost the development of renewable energy in Portuguese-speaking countries. In addition, he believes that Brazil is a global benchmark for its renewable energy production potential, especially in terms of hydroelectricity generation and solar-photovoltaic and wind energy production. “We have developed legislative mechanisms to encourage the production of renewable energy, which together with a very strong consumer market (...) means that we have a perfect ecosystem,” he said. According to the President of RELOP, the country's potential, public policies and consumer market make it possible to expand the generation of renewable energy. In this sense, he emphasized the importance of transmitting and sharing knowledge, especially in cultures that are close to each other and have a common origin. “There's no point in knowledge if it's isolated. (...) I'm a great believer in bringing countries together,” he said.

Gabriel Makengo, Director of Energy at the General Directorate of Natural Resources and Energy, of the Ministry of Infrastructure and Natural Resources of São Tomé and Príncipe, stated that the carbon market “is not just an economic tool, but an opportunity to promote sustainable development, align efforts against climate change and guarantee a prosperous and more equitable future”. According to the Energy Director, this is a strategic and collaborative response, which is proving to be an effective model for reducing greenhouse gas emissions, by allowing countries and companies to offset their emissions by investing in mitigation projects, such as clean technologies. “In the CPLP space, several Members have vast natural resources that play a critical role in carbon capture, especially through forests, soil and marine ecosystems,” he said. These resources “are strategic assets that can be monetized through carbon markets, generating revenue to finance sustainable development and climate adaptation, in line with the G20 guidelines,” he added. According to Gabriel Makengo, the CPLP “can play a key role in coordinating policies, exchanging good practices and technical support” and “creating a common platform for carbon credit trading and strengthening scientific cooperation can be important steps in this direction”.

Carlos Alexandre Pires, Specialist in Public Policy and Government Management at the National Climate Change Secretariat of the Brazilian Ministry of the Environment and Climate Change, recalled that Brazil was ahead of the rest of the world and promoted its energy transition during the 1970s and 1980s, although under different circumstances to those that exist today due to climate change. “To a certain extent, (...) this narrative persists that Brazil has already made its energy transition, while the rest of the world is debating and dialoguing about its transition,” he said. Even though the country's reality is different from the other countries, Carlos Alexandre Pires believes that other problems related to the energy transition need to be addressed, namely unevenness and climate justice. “Our energy transition needs to be shaped in our favor,” he emphasized. With the country's social and economic difficulties, it's important to “turn the transition into an opportunity for growth, ecological transformation and energy transformation so that we can benefit from it,” he added. In addition, he considers that there is an urgent need to make the language of climate change and the energy transition clear and simple for ordinary people. “There is a whole language that needs to be worked out” so that the "citizen who is most vulnerable to climate change knows exactly what they need to do".

At the 3rd CPLP Energy and Climate Seminar, the main results achieved by the G20 Energy Transitions Working Group were highlighted, namely the definition of the ten principles of a just and inclusive transition (which takes into account the SDG7 established by the UN and the first Global Stocktake established at COP28) and the creation of a global energy planning agreement for the implementation of more efficient and sustainable policies. In addition, questions were raised about net zero emissions, deforestation, adaptation to climate change, energy justice and the dignity of access to energy. This was followed by a round table on the regulation of carbon markets in CPLP countries, which focused mainly on the case of Angola, Brazil, Mozambique and Portugal. Legislative developments in regulated markets for achieving carbon neutrality targets were shared, as well as guidelines for carbon certification with legal certainty and examples of how the carbon market operates and how credits are processed. Different carbon credit financing and incentive mechanisms were also analyzed, as well as their challenges. Finally, several case studies of carbon credits in the energy sector in Angola, Brazil, Mozambique and Portugal were presented.

Several representatives of CPLP member states attended the event and took part in different panels. Of particular note were: José Bernardes, from Portugal's Ministry of Environment and Energy; Paula Panguene, from Mozambique's Ministry of Land and Environment; Rui Ferreira, from Angola's Ministry of Environment; Fernanda Castro, from Brazil's National Carbon Credit Institute; Ricardo Almeida, Rio de Janeiro's Municipal Prosecutor; Glauce Botelho, from Brazil's Energy Research Company (EPE); Emanuel Bernardo, from the Angolan Carbon Markets Association; Hélder Rodrigues, from Portugal's Energy Agency (ADENE); and Artur Trindade, from RELOP.

This third seminar was supported by the GET.transform program (funded by the European Union and German Cooperation), the German Agency for International Cooperation (GIZ), Brazilian Trade and Investment Promotion Agency (ApexBrasil), Brazilian Photovoltaic Solar Energy Association (ABSOLAR), National Electricity Agency (ANEEL) and Electricity Sector Study Group (GESEL). The event was also sponsored by Agência Nacional de Petróleo, Gás e Biocombustíveis (ANPG), African Legal Support Facility (ALSF), Miranda Alliance, Sonagás Energias Renováveis and APP - Águas de Ponta Preta.

Este terceiro seminário contou com o apoio do programa GET.transform (financiado pela União Europeia e pela Cooperação Alemã), da Agência Alemã para a Cooperação Internacional (GIZ), da Agência Brasileira de Promoção de Exportações e Investimentos (ApexBrasil), da Associação Brasileira de Energia Solar Fotovoltaica (ABSOLAR), da Agência Nacional de Energia Eléctrica (ANEEL) e do Grupo de Estudos do Sector Eléctrico (GESEL). O evento foi ainda patrocinado pela Agência Nacional de Petróleo, Gás e Biocombustíveis (ANPG), African Legal Support Facility (ALSF), ADENE, Vertecotech e APP – Águas de Ponta Preta.

This is the third in a series of CPLP Energy and Climate Seminars, which aims to encourage the sharing of experiences and the exchange of good practices between CPLP countries in the field of energy transition; and to promote the public-private complementarity of financial resources in sustainable energy projects.

The fourth and final seminar in this series, to be held in March 2025 in São Tomé and Príncipe, will see the launch of the “Lusophone Energy Transition Roadmap for COP30”, which will compile the energy transition and climate finance strategies of each CPLP country and identify points of cooperation between them.

The CPLP Energy and Climate Seminar Series has the institutional support of the CPLP, the Ministry of Infrastructure and Natural Resources of São Tomé and Príncipe, the Ministry of Energy and Water of Angola, the Ministry of Mines and Energy of Brazil, the Ministry of Industry, Trade and Energy of Cape Verde, the Ministry of Energy of Guinea-Bissau, the Ministry of Mineral Resources and Energy of Mozambique and the Ministry of Environment and Energy of Portugal.

Click here to see the photos and here to rewatch the streaming of the seminar.