‘Brazilian Taxonomy’ expected in August to be a pillar for COP30’s sustainability agenda
The Ministry of Finance (MF) announced this Wednesday (19), during the event “Towards COP30: Transparency, Taxonomy and the Role of Companies in the Agenda”, organized by the Brazilian Institute of Corporate Governance (IBGC) in São Paulo, that it expects to publish the final documents of the Brazilian Sustainable Taxonomy in August. This initiative aims to classify economic activities based on objective sustainability criteria, in alignment with international standards.
The Brazilian Sustainable Taxonomy is a system that identifies and classifies which economic activities are sustainable. It serves as a catalog that objectively and scientifically defines economic activities, assets, and projects that contribute to environmental, economic, and social goals set by Brazilian society.
According to the definition by the International Capital Market Association (ICMA, 2021), a taxonomy establishes criteria and indicators that help assess whether an activity promotes sustainability and the transition to a green economy.
This tool guides investors and companies in choosing investments that genuinely benefit the planet and society, while reducing the risks of so-called “greenwashing” — when companies claim to be sustainable without actually implementing meaningful actions.
A taxonomy works as a strategic instrument to mobilize and redirect capital flows towards essential investments in tackling the climate crisis.
Through the Novo Brasil – Ecological Transformation Plan, the MF has been developing a series of proposals for global climate finance to be presented at COP30 in Belém, which will be chaired by Brazil. Among the more concrete measures, special attention is being given to the Coalition for Carbon Market Integration and the Tropical Forests Forever Fund (TFFF), which are already being negotiated with other countries and multilateral organizations.
After publishing an action plan and the first version of the technical papers — presented at the COPs in Dubai and Baku — the proposal underwent a three-month public consultation. The expectation is to complete the regulatory process in the coming months, with the final documents set to be published in August.
Source: Ministry of Finance Brazil
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