This paper assesses the Brazilian economy's exposure to climate change focusing on two key areas: agriculture and hydropower. While climate vulnerabilities are significant and recent patterns of land-use further amplify climate change risk, Brazil's opportunities for green growth are vast. Given geography and existing infrastructure, notably the very green energy mix, Brazil can boost its economic potential while mitigating a potential tradeoff between energy use, emissions, and growth. Policy options to address key vulnerabilities and leverage opportunities include boosting the Amazon's resilience via fiscal incentives for forest protection, investing in climate smart agriculture and insurance guided by sustainable feebates, continuing the diversification of renewable power generation, and stimulating green growth while greening the financial sector.
Authors
Chen Chen, Koralai Kirabaeva, Christina Kolerus, Ian W.H. Parry, Nate Vernon
- Format
- Paper
- Frequency
- regular
- ISBN
- 9798400289361
- ISSN
- 1018-5941
- Pages
- 33
- Published in
- United States of America
- Series
- Working Paper No. 2024/185
- StockNumber
- WPIEA2024185
Table of Contents
- Introduction 5
- Key Vulnerabilities 6
- Agriculture 6
- Hydropower generation 7
- Financial sector 10
- Policy Options to Strengthen Resilience and Green the Economy 11
- Brazil’s climate strategies 12
- Boosting the Amazon’s Resilience 14
- Background 14
- Building on Ongoing Initiatives 15
- Payments for Environmental Services (PES) Programs 17
- Feebates22F 19
- Investing in Climate-Smart and Sustainable Agriculture 20
- Optimizing adaptation investment 21
- Improving emission intensity 23
- Diversifying Power Generation Sources 24
- Leveraging Opportunities for Green Growth 25
- Conclusion 27
- Annex 1. Design Issues for Feebates to Promote Forest Carbon Storage 29
- References 30
