On Wednesday (3), the Committee on the Environment and Sustainable Development approved the creation of the National Fund on Climate Change, whose objective is to finance initiatives which reduce the impacts of global warming in Brazil.

According to that bill, the Ministry of Environment (MMA) should destine 60% of the resources coming to which it is entitled. Those resources come from the special participation in the oil production.

Four bills
The approved text was the substitution bill by its rapporteur, Deputy Arnaldo Jardim (PPS-SP), to four bills attached to that one, which handle that subject:

- Bill 2223/07, from Deputy Sebastião Bala Rocha (PDT-AP), which broadens the financial compensation of the gas and oil industry for the remediation of environmental damages;

- PL 2635/07, from Deputy Eduardo Valverde (PT-RO), which creates the National Fund for Climate Changes, by means of the redistribution of resources from the special participation in petroleum;

- PL 3820/08, from Executive Power, which creates the National Fund on Climate Change (FNMC), with resources from petroleum; and

- PL 3570/08, from Deputy Anselmo de Jesus (PT-RO), which extends resources coming from petroleum, for rural producers to recover or maintain natural ecosystems.

Arnaldo Jardim explained that he based himself on the PL from the Executive to elaborate the substitution bill, for it was the most comprehensive one. The approved text establishes that the resources of MMA, to which it refers, should be “preferentially” destined to remedy damages caused by activities related to the petroleum chain.

Petroleum activity
Currently, according to Law 9.478/97, those resources should be destined only to the remediation of environmental damages caused by petroleum-related activities. In case of large production volume or high profitability, states and municipalities are entitled to receive a special participation.

That participation corresponds to the gross revenue deducted from royalties, investments in exploitation, operational costs, depreciation and taxes. From the resulting amount, 40% go to the Ministry of Mines and Energy, 10% to the Ministry of Environment, and 40% to the producing state.

The 10% left should go to the municipality where the onshore production happens, or to the one in face of the continental platform in which the extraction happens, as it currently happens with the offshore exploitation at the Campos and Santos basins, among others.

Fund
The project of the National Fund on Climate Change establishes that it should be administered by a management committee, linked to the Ministry of Environment. Six representatives from the Executive Power and five from a non-governmental sector should participate in that college.

According to that bill, those resources should be applied by means of non-reimbursable and reimbursable loans. In that last case, the financial agent will be the Brazilian Development Bank (BNDES).

According to Jardim, the approval of that measure “represents an important step for Brazil to advance in such a crucial issue”. For him “it is impossible to make politics without a clear destination of resources. National Policy on Climate Change has now a fund”.

Procedure
The bill, which was deemed priority regime, follows for the conclusive analysis of the Committees on Mines and Energy; on Finances and Taxation; and on the Constitution and Justice and Citizenship.

Report - Maria Neves
Editing - Newton Araújo
Translation - Positive Idiomas Ltda