News

15/12/23

The Brazilian Mining Institute (IBRAM) considers the results of its participation in the 28th United Nations Climate Conference (COP28) to be very positive. “It was a unique opportunity to highlight, before representatives from almost the entire planet, the fundamental role of the mining industry in the decarbonization of the economy and the construction of a green economy in Brazil and the world”, summarizes Raul Jungmann, CEO of IBRAM . He and directors Alexandre Mello and Paulo Henrique Soares made up the Institute’s delegation to Dubai, headquarters of COP28, and were accompanied by directors of associated mining companies.

This role of mining is still being disseminated globally and should gain strength in the next COPs, including COP30, which will be held in Belém (PA). “In the next COPs, especially COP30, in Brazil, the mineral sector will certainly gain even more relevance in its association with the design of effective solutions to favor the energy transition in an accelerated and growing way”, assesses Jungmann.

According to Jungmann, COP28 reinforced the message that mining has the potential to be a protagonist in efforts to combat climate change and leave a sustainable legacy for future generations. The urgency required of nations to accelerate actions against the harmful effects of climate change has elevated mining to an indispensable condition to face this challenge. During the week, IBRAM participated in eight panels at the COP, where it demonstrated that Brazilian mining is an agent that exports solutions to the country’s commercial partners.

Critical minerals are strategic for the global energy transition

Within the high level international negotiations, the countries approved in the final agreement the transition from the consumption of fossil fuels to that of renewable energy – transition away from. Contrary to what climate scientists and experts wanted, which would be the elimination of fossil fuels – phase out.

Ores play a crucial and strategic role in developing the technologies necessary to provide clean, continuous sources of energy for the planet. There is no possibility of transitioning to a low-carbon economy without the so-called “critical minerals”, such as lithium, niobium, rare earths, copper, bauxite, tantalum, iron, among others. These ores are essential inputs for the development of technologies and equipment aimed at the energy transition.

Much of the attention at COP28 focused on replacing fossil fuels with renewable sources. For the first time, the countries present at the meeting agreed that it is necessary to make an energy transition to reduce the use of fossil fuels. In their operations, the mining companies present at COP28 – such as Vale, Gerdau and Hydro – reported that they carry out tests and are already using renewable energy sources and also support customers and suppliers to do the same, going to scope 3 of emissions (where the largest emission in the sector), as a way for everyone, together, to reduce their carbon footprint, in addition to mapping the risks arising from extreme weather events and including climate adaptation in their business strategy.

Private sector pact for energy transition

Furthermore, during COP28, IBRAM, IBÁ (Brazilian Tree Industry), IBP (Brazilian Petroleum Institute) and ÚNICA (Sugarcane and Bioenergy Industry Union), made a commitment to promote energy transition and decarbonization. These organizations signed a term with 17 commitments in Dubai, which include initiatives such as improving energy performance and emissions across the entire value chain, investing in decarbonization technologies, defending the creation of the Brazilian Regulated Carbon Credits Market and much more. .

US$ 1.2 trillion of investments

Jungmann assessed at COP28 that Brazil has a window of opportunities in the global energy transition, with an investment potential of US$1.2 trillion by 2030, according to the International Energy Agency. This represents not only an opportunity for the energy transition, but also for the country in terms of jobs and technologies. “Brazil cannot miss this opportunity,” he stated.

Joint agenda for sustainability in the mineral sector

In parallel, the Brazilian mining industry is committed to becoming even safer, more responsible and sustainable, in order to respond to the extreme climate events that affect the planet. In this sense, the mineral sector is unifying strategies and actions through the Brazilian Mining ESG Agenda, which foresees initiatives in several fields related to the sector.

IBRAM currently records the third inventory of emissions from the mineral industry, and has just announced the decarbonization project for the Brazilian mining industry. Both works will be the basis for defining the Mining Carbon Roadmap and for defining emissions reduction targets in the sector.

Mining and agribusiness

Another highlight of IBRAM’s participation at COP28 was on a panel designed to evaluate and project the contributions of mining and agribusiness to the sustainable future of the planet. According to Jungmann, mining and agribusiness are sectors with enormous potential to make Brazil lead the agenda to combat the harmful effects of climate change. Ores are essential for technological innovation and the development of equipment aimed, for example, at expanding renewable energy sources. Agribusiness is the basis of biofuels – ethanol, biodiesel, etc. -, in other words, synonymous with clean energy security.

Carbon credit market

Within the scope of international negotiations, discussions on Articles 6.2 and 6.4 of the Paris agreement, which deal with the trade of carbon credits between countries and international cooperation through projects, moved slowly. However, in Brazil we await the çei that regulates the Carbon Market. It will bring legal and commercial security to these credits, benefiting various economic segments, including mining.

Challenges ahead

The challenges for the sustainable expansion of mining were also addressed by the CEO of IBRAM at COP28. Only 4% of the Brazilian territory has adequate mapping for mining activities. Furthermore, it is necessary to establish financing lines aligned with the characteristics of the Brazilian mineral sector. The country needs to develop a national policy to encourage the production of critical minerals for the energy transition, strengthen and structure a National Mining Agency and establish legislation that recognizes mining as strategic for the country’s socioeconomic and environmental development, at the same time as which reduces the barriers imposed by federative entities that negatively impact mining activity with the creation of taxes and charges successively.

“IBRAM is committed to facing these challenges and working in close collaboration with the government, partners and other stakeholders to boost sustainable mining in Brazil”, highlighted the director.