Page 24 - Respond 2020 Magazine

RENEWABLE ENERGY CLIMATE CHANGE

CERTIFICATES AS CORPORATE LITIGATION WILL

STRATEGY TO REDUCE GHGS: THE REINFORCE BRAZIL’S

SIRIO-LIBANÊS HOSPITAL CASE IN BRAZIL COMMITMENT TO THE PARIS

AGREEMENT
Daniel K. Ohnuma and Rodrigo V. Sluminsky
he global market has developed different
ways of enabling end-user access to Maria João Pereira Carreira Rolim and Ana Paula Chagas
Tthe renewable energy market, such
as alternative contracts, green tariffs and
financing, self-production and Renewable he Intergovernmental Panel on Climate
Energy Certificates. They have emerged as Change (IPCC) recently published its
a mechanism to track and document the Tspecial report on climate change and
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origin of the energy generated through the land in which it warns that humankind must
identification of their attributes . alter the way land has been used to fight
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climate change.
Certificates may be purchased independently or bundled
into PPAs. Energy attributes from different sources or According to this report, all the current developments in the
technologies can be certified. The clean energy is linked to a energy sector to combat climate change will not be enough,
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Certificate by the allocation of its attributes . End users might since land use is responsible for 10% of all greenhouse
Daniel K. Ohnuma Rodrigo V. Sluminsky
consume unbundled energy, nonetheless they cannot claim gas emissions and food waste makes a 30% emissions
rights to green attributes anymore. the Hospital helps annually more than 120,000 patients. contribution.
There are 7 service units, teaching and research centers and
In Europe, the EECS regulates the issuance of certificates It is undeniable that climate change effects are felt
more than 40 specialties. The main hospital complex has 710
through Guarantees of Origin (GOs). In the United States, throughout the world and those who are most vulnerable to
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beds occupying a built area of approximately 100,000m in
people match all environmental energy attributes to these effects are the ones who have contributed the least to
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the city of São Paulo, Brazil . it. This has raised questions about climate justice and over
Renewable Energy Certificates (RECs), including source, Maria João Pereira Ana Paula Chagas
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technology and emission factor . According to the AIB, The Hospital has a permanent commitment to sustainability the past years we have witnessed the increase of climate Carreira Rolim
Certificates might be used to support claims from all players, and annually publicize its Emissions Inventory in the Brazilian change litigation across the globe.
e.g., as evidence of energy supply, condition for financing or GHG Protocol Program. In 2018, 9,041 tCO2 were issued, According to IBA Climate Change Justice and Human the Paris Agreement and that the country probably will not
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environmental credentials . of which 3,029 tCO2 due to the energy consumption. The Rights Task Force , climate change justice is a concept that be able to comply with its NDC commitments until 2030.
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Hospital purchases energy in the free market, only part can This circumstance opens up the possibility for climate
The challenge is to ensure accuracy, exclusivity and recognises climate change will disproportionately affect
be used to neutralize or reduce its carbon emissions. change litigation on the grounds of the Urgenda Case, which
applicability based on the principles of GHG Protocol, which people who have less ability to prevent, adapt to or otherwise
allows consideration of zero emission in their activities. RECS In 2019 the Hospital decides to higher standards. They respond to increasingly extreme weather events, rising sea could become a very important instrument to oblige the
International indicates that last year up to 700TWh in GOs had set a 15% annual GHG emission reduction target and levels and new resource constraints. government to implement policies that achieve the goals of
avoiding a greater increase of global temperature.
were issued in Europe. In the United States, RECs’ market decided to purchase RECs to meet its target for emissions. We have seen an increase in litigation cases across the globe
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steadily grows every year (16% in 2017), totaling 400TWh . Based on its annual target, the Hospital needed to reduce with important decisions such as the Urgenda Case where Besides this, Article 225 of our Federal Constitution
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approximately 1,356 tCO2e, equivalent to the purchase of reinforces the “duty of care,” since it recognises explicitly
In Asia, Africa and most of South America, the official system the Hague Court of Appeal recognised the existence of a
18,577 MWh/year in Certificates, due to national emission “duty of care” that makes governments accountable for their that all have the right to an ecologically balanced
is the International Renewable Energy Certificate Standard
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factor of 0.073 tCO2e/MWh . This represents up to 45% of environment and to a healthy quality of life.
(I-REC). In Brazil, it is also possible to adopt the Brazilian climate action on the basis of human rights.
the total energy to be consumed by the Hospital.
Renewable Energy Certification Program (REC Brazil), with The Brazilian government’s position could be interpreted
International environmental standards, which are supported
even more restrictive attributes. I-REC and REC Brazil Many corporations around the world have considered by scientific evidence (IPCC reports) as well as being as a failure to implement the necessary actions to combat
certification models are interdependent and use the same renewable energy as main strategy to reduce emissions. endorsed by international agreements (Paris Agreement) climate change, and even a consideration of decreasing
platform . A shift in the energy matrix to a low carbon economy and the Parties’ decisions, were used by the Hague Court of ambitions regarding its NDCs. Since we are almost reaching
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is important to hold the increase in the global average a point of no return, climate change litigation may be seen
Currently, there are 104 certified projects by I-REC in Brazil: Appeal to define the standard of the State’s human rights
temperature to well below 2 degrees Celsius. 4 as the last resource available to protect our right to a healthy
75 wind projects; 15 hydroelectric power plants; 11 solar obligation .
environment.
complexes and 3 biomass plants. It means around 1,3 GW in In this context, Certificates can work as an excellent Governments have to be accountable for their inaction
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Certificates, much far less than other markets . mechanism to drive the implementation of renewable in climate change issues and human rights obligations www.rolimvlc.com
energy projects while companies improve their standards of
The Sirio-Libanês Hospital is one of the largest international may provide the legal basis for claims against states for
corporate governance and commitment to sustainability. 1. IPCC Special Report on Climate Change, Desertification, Land Degradation,
health references in Brazil and in the world. Founded in 1921, inadequate climate protection since the “duty of care” Sustainable Land Management, Food Security, and Greenhouse gas fluxes in
obliges them to achieve long-term emissions reduction Terrestrial Ecosystems
1. Environmental Protection Agency (EPA). Guide to Purchasing Green targets. 2. Achieving Justice and Human Rights in an Era of Climate Disruption Report.
5. RECs International. Annual Report 2018. Markets continue to drive growth
Power Renewable Electricity, Renewable Energy Certificates, and On-Site International Bar Association, July 2014. ISBN 978-0-948711-35-0
in renewables. Hertogenbosch (NL). 2018. Available at <www.recs.org>.
Renewable Generation. Washington (US). 2010, March. Updated in 2018, 3. Urgenda Foundation v. The Netherlands [2015] HA ZA C/09/00456689 (June
6. Developed by Associação Brasileira de Energia Eólica (ABEEÓLICA), From Brazil’s perspective, climate change litigation is not yet
September. Available at <www.epa.gov>; Center for Resource Solution 24, 2015); aff’d (Oct. 9, 2018) (District Court of the Hague, and The Hague
Associação Brasileira dos Geradores de Energia Limpa (ABRAGEL), Câmara relevant and most court cases are held under environmental
(CRS). The Legal Basis for Renewable Energy Certificates. San Francisco
de Comercialização de Energia Elétrica (CCEE) and Instituto Totum (REC Court of Appeal (on appeal)
(CA). 2015, June. Available at <www.resource-solutions.org>. or human rights cases. The climate change aspect has not
Brazil, 2019). 4. Minnerop, Petra. Integrating the “duty of care” under the European
2. The International REC Standard (I-REC). The I-REC Code. Version 1.7.
7. REC Brazil, 2019. been used as the central plea, rather it has been used as just Convention on Human Rights and the science and law of climate change:
Amsterdam (NL), 2019. Available in <http://www.irecstandard.org>.
8. Hospital Sírio-Libanês (HSL). Institucional: Sírio-Libanês – Conviver e the decision of the Hague Court of Appeal in the Urgenda Case. Journal of
3. Word Resources Institute (WRI). Greenhouse Gas Protocol Scope 2 one of countless arguments within the case.
compartilhar. São Paulo. 2019. Available at <www.hospitalsiriolibanes.org. Energy & National Resources Law, 2019. Vol. 37, Nº 2, 149-179.
Guidance. An Amendment to the GHG Protocol Corporate Standard.
br>. Access in 10.08.19.
Washington (US). 2015. Available at <www.ghgprotocol.org>. Just after the elections, the President of Brazil gave to the
9. Ministério de Ciência, Tecnologia, Inovações e Comunicações (MCTIC).
4. Association of Issuing Bodies (AIB). Principles & Rules of Operation for the Brazilian press some declarations: that Brazil could leave
Fator médio anual de emissões de carbono na matriz elétrica nacional.
European Energy Certificate System (EECS). Arnhem (NL). Release 7, v.10.
Brasília (DF). 2018. Available at <www.mctic.gov.br>. Access in 10.08.19.
2018, March. Available at <www.aib-net.org>. Access in 10.08.19.
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