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  • Gustavo Santos

The price of carbon is the key to reducing emissions

The carbon market has been widely promoted as one of the main tools for combating climate change and reducing greenhouse gas (GHG) emissions. It is often seen as an efficient way to price emissions and encourage companies to adopt more sustainable practices. However, can the carbon market alone really deliver on this promise? The answer is not as simple as it may seem.


The truth is that although carbon markets have gained prominence and are integrated into the Paris Agreement, they do not directly reduce the amount of carbon in the atmosphere. In regulated markets, what effectively leads to a reduction in emissions is not the market itself, but the rules imposed by regulators, which progressively limit the volume of emission permits available. In this way, the carbon market acts as a tool to distribute these reductions more efficiently and economically, but it does not generate a net reduction in itself.


So why has this mechanism been widely adopted by governments, businesses and organizations? The answer lies in its ability to create a price for carbon, making the act of polluting financially costly. By assigning an economic value to emissions, the carbon market encourages economic agents to seek cleaner and more efficient solutions. For companies, this means investing in technologies that reduce their emissions and prevent them from having to buy emission permits or pay increasingly expensive fines. For consumers, it means favoring products that, because they are less carbon intensive, are cheaper compared to their competitors.


In regulated markets, the role of regulators is essential for these changes to occur significantly. They set maximum emissions limits and, over time, lower these ceilings, creating natural pressure on permit prices. The smaller the volume of permits available, the higher their price, which makes it more expensive for companies to continue issuing. This logic forces the replacement of equipment and processes that depend on fossil fuels with more sustainable solutions, which leads to a gradual decrease in emissions.


In voluntary markets, where there is no centralized regulator, pressure comes from different sources, such as shareholders, investors and civil society itself. Here, the purchase of carbon credits initially works as a way for companies to offset their emissions, allowing them to postpone the implementation of deeper structural changes. However, as the voluntary market expands and carbon credits become more scarce, their prices also increase, forcing companies to make the investments necessary to transition to a low-carbon economy.


Amazon Connection Carbon understands that true climate transformation doesn't happen through carbon markets alone, but rather through a combination of smart regulatory decisions, investments in low-carbon technologies, and a firm commitment to sustainability. Our services go beyond the commercialization of carbon credits: we offer complete solutions that include the quantification of emissions, the development of forestry and non-forestry projects, and the certification of carbon projects, always focusing on effective results.


ACC works with scientific and methodological rigor to ensure that each carbon credit project we develop actually contributes to reducing emissions and environmental preservation. This includes the use of advanced technologies to calculate the carbon footprint of forestry and agricultural areas, as well as projects in renewable energy and waste management. Our objective is to provide a fair and sustainable transition, benefiting both the environment and local communities.


Through our work, we help companies and rural landowners to participate in projects that not only offset their emissions, but also generate real positive impacts on preserving the Amazon and combating climate change. The carbon credits we offer are verified in accordance with the most rigorous international standards, guaranteeing environmental integrity and socioeconomic benefits for the populations involved.


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