FGV Researcher Highlights Challenges in Consolidating the Carbon Market at COP30 Panel

In a discussion that brought together leaders from the environmental, financial, and public sectors, Daniel Vargas, researcher at Fundação Getulio Vargas (FGV), stated that Brazil’s green transition requires more than good intentions: it demands a combination of robust science and sound regulation to consolidate a reliable carbon market. The panel, held on November 18, explored the strategic role of the insurance sector in enabling this market, highlighting challenges such as adapting international methodologies to tropical realities.

The session was moderated by Fabio Damasceno, Technical Director for Agricultural, Livestock, and Rural Property Insurance at MAPFRE. Amid the global race toward carbon neutrality, Damasceno warned that carbon markets should not be seen merely as financial instruments, but as mechanisms that enable concrete actions with environmental impact.

“We are at a decisive moment in the global climate agenda. As governments, companies, and investors mobilize to reduce emissions and achieve carbon neutrality, it becomes clear that transparent and trustworthy carbon markets are indispensable. These are not just financial tools, but mechanisms capable of channeling resources into concrete actions — from forest conservation to ecosystem restoration and the development of clean technologies. Without trust, transparency, and credibility, all mitigation efforts lose strength.”

In his presentation, Vargas stressed that the green transition has moved beyond being an exclusively environmental issue to become an economic debate, requiring rigorous criteria and transparency to ensure credibility. He argued that science and regulation must work hand in hand to position Brazil as a global reference.

“The environmental debate is no longer just environmental: today, it is economic. The central question is how to transform a problem into a transition framework capable of realigning incentives and incorporating environmental dynamics into business models and national strategies. But being green is not enough — we need rigorous and transparent criteria that allow the market to believe that the commitments made are delivering positive environmental outcomes.”

The professor also highlighted a specific challenge: adapting international methodologies to the Brazilian context, ensuring rigor without losing alignment with tropical particularities.

“The tropical world imposes particularities that do not fit imported models. Our challenge is to tropicalize methodologies and parameters to define what is green and what is not. This adaptation is crucial for building a robust and reliable national carbon market.”

After other experts shared their contributions, the full debate became available online and can be accessed at this link.

Comprehensive coverage of Fundação Getulio Vargas’ participation in COP30 - including agendas, exclusive content, and contributions from the institution’s researchers to global climate action - is available on the FGV Climate Agenda Platform. The opinions expressed in this publication are solely those of the collaborating researchers and do not necessarily reflect the official position of Fundação Getulio Vargas.