Emissions Trading Simulation
The Emissions Trading Simulation is a didactic carbon pricing exercise that offers its participants the opportunity to operate in a fictitious cap-and-trade carbon market.
Since 2013, the initiative aims to create and disseminate knowledge, among companies, about the functioning of an emission trading system (ETS), its implications for business and its contribution to achieving targets for reducing greenhouse gas (GHG) emissions in a cost-effective way.
Simulation is a unique initiative in Brazil, as it is the only exercise that replicates a market environment, in which companies can learn in practice how an ETS is designed, how to negotiate successfully and what risks and opportunities are involved.
Each year, 25 to 30 companies participate in the voluntary initiative. This includes some of the biggest players in the sectors of energy, steel, cement, oil and gas, pulp and paper, financial system, among others. More than 400 professionals from the private sector have participated in the Simulation since 2013.
Activities
2021
Soon.
2020
In 2020, A Simulation made use of the CarbonSim fictitious trading platform, a dynamic and interactive platform that simulates a cap-and-trade market.
In four workshops, participants from several Brazilian companies worked at CarbonSim as representatives of fictitious companies, negotiating permits to emit and carbon credits. In each workshop we also had the participation of national and international experts, who addressed issues related to carbon pricing.
Some of the main results of 2020: 25 participating companies from 10 different sectors, 40 individual participations, 01 training, 04 workshops and 01 final meeting.
Period 2013 - 2019
The rules and parameters of the Simulation were built in 2013, together with the participating companies, based on the emissions trading systems in operation, such as those in California and the European Union. From 2014 to 2018, five operational cycles were carried out. In 2018, new rules and parameters were tested, as a result of studies and debates carried out in 2017 with some of the main sectors: agribusiness, energy, industry, pulp and paper.
Each year, companies participating in the initiative had to reconcile their emissions from the previous year with an equivalent volume of allowances. All transactions took place on the trading platform of Instituto BVRio - Bolsa de Valores Ambientais and were carried out using fictitious financial resources.
The emissions data used were real, covering (part of) GHG emissions from sources that belong or are controlled by the participating companies, published in the Public Emissions Registry of the Brazilian GHG Protocol Program.
Publications and Reports
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ETS Emissions Trading System - Final Report of the 2018 Cycl The main objective of the report is to communicate the results and final analyzes of the 5th operational cycle of the Emissions Trading System Simulation, held from March to November 2018. The Simulation, an initiative of the FGV Sustainability Studies Center (FGVces) has as objective to generate and share knowledge about the design, functioning and consequences of an emissions trading system (ETS). This fifth cycle was attended by 29 companies, some of which operated with more than one account (Regulated Market Operators) due to differences in activities within their businesses. Thus, the year 2018 had a total of 32 operators active in the Simulation markets. Click to access the publication (portuguese only) |
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ETS Emissions Trading System - 2017 Cycle Final Report This report's main objective is to communicate the results and final analyzes of the 4th operational cycle of the Emissions Trading System Simulation, held from March to November 2017. In addition to the operational results, the main lessons and challenges of the Simulation are presented in this document, as well as as the results of the sectorial work groups, which were created in 2017 to study and discuss the potential and challenges of the sectors in the context of carbon pricing. Click to access the publication (portuguese only) |
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Findings from the Emissions Trading System Simulation - Proposals from the Business Experience The document systematizes and disseminates findings and knowledge generated in the three years of operation of the Simulation in order to contribute to the debate on carbon pricing in Brazil. Click to access the publication (portuguese only) |
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ETS Emissions Trading System - 2016 Final Cycle Report This report aims to communicate the challenges and lessons learned from the 3rd operating cycle (2016) of the Emissions Trading System (ETS), an initiative of the FGV-EAESP Sustainability Studies Center (FGVces), as well as the strategies and performance of participating companies. Click to access the publication (portuguese only) |
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ETS EPC Emissions Trading System - Final Report: March to November 2015 This report provides an analysis of the results of the 2nd operating cycle (March-November/2015) of the Emissions Trading System of the Companies for the Climate Platform (ETS EPC), an initiative of the FGV-EAESP Sustainability Studies Center (FGVces) which offers the Brazilian business sector the opportunity to try out a market instrument for carbon pricing and enable it to contribute to the debate on this issue in Brazil and in the world. Click to access the publication (portuguese only) |
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ETS EPC Emissions Trading System Simulation - Final Report: March to November 2014 This report presents the challenges, results, analyzes and a balance of the 1st operational cycle (March-November/2014) of the Emissions Trading System of the Companies for the Climate Platform (ETS EPC), an initiative of the Center for Sustainability Studies at FGV- EAESP (FGVces), which offers the Brazilian business sector the opportunity to try out a market instrument for carbon pricing and enable it to contribute to the debate on this topic in Brazil and in the world. Click to access the publication (portuguese only) |
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