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Invert Insights December 8, 2023


Deforestation decreasing in Brazil, new oilpatch rules, and Amazon cuts emissions

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  • Deforestation in Brazilian Amazon down 64% in November
  • Stricter Oilpatch Methane Rules Unveiled by Canadian Government
  • Amazon Cuts Shipping Emissions with 50% Increase in Rail and Sea Transport in Europe

Deforestation in Brazilian Amazon down 64% in November

Preliminary INPE data shows Amazon deforestation dropped 50.5% in the first 11 months of 2023, hitting its lowest level for the month in at least eight years. At COP28, President Luiz Inacio Lula da Silva restated his country’s target of ending illegal deforestation by 2030, while touting progress shown in data from his first year in office.  

“Brazil is willing to lead by example,” Lula told COP28. “We have adjusted our climate goals, which are now more ambitious than those of many developed countries, drastically reduced deforestation in the Amazon and will bring it to zero by 2030.”

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Home to almost 60% of the world’s rainforests, Brazil is one of the most biodiverse countries in the world. The protection and conservation of this region is a key step to achieving the world’s climate goals. Moreover, President Luiz Inacio Lula da Silva’s public commitments set a positive example for other countries to step up and vocally commit to global climate efforts while serving as positive reinforcement that meaningful climate action is possible by G20 countries. 

Stricter Oilpatch Methane Emissions Rules Unveiled by Canadian Government

Canadian Environment Minister, Steven Guilbeault, unveiled stricter oil and gas industry regulations with the goal of sharply reducing harmful methane emissions this week at the COP28 climate summit. These new regulations include requirements for oil and gas companies to plug methane leaks and prohibit flaring and regular, mandated inspections to ensure compliance.

Much like the regulations announced by their North American counterparts in the US, these new Canadian regulations are designed to help Canada reach and exceed its 2030 target of slashing methane emissions from the oil and gas sector by at least 75 per cent below 2012 levels.

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While regulations on the Oil and Gas sector are key to achieving meaningful climate targets, it doesn’t come without conflict and tension between Canadian provinces and the federal government. Alberta premier Danielle Smith has expressed upset that new rules and targets have been ‘unilaterally established’ and has announced her intention to challenge these new regulations. Alignment between federal and provincial governments in Canada is a key challenge that must be overcome to ensure Canada can meet its 2030 climate targets.

Amazon Cuts Shipping Emissions with 50% Increase in Rail and Sea Transport in Europe

Amazon revealed that it has grown its use of rail and sea transportation by 50% in 2023 in Europe, resulting in significant reductions in carbon emissions, as well as speeding up customer deliveries and inventory transfers. The company said that it now distributes products via more than 100 rail lanes and more than 300 sea routes built on partnerships with European rail and sea carriers including Cargo Beamer, VIIa, the Mercitalia Group, Grimaldi, Stena Line, DFDS, and others.

In 2022, Amazon succeeded in reducing its Scope 3 emissions by 0.7% despite growing revenues by 9%, with emissions cuts driven by areas including building construction, leased buildings & equipment, and third-party transportation. 

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Companies like Amazon have a significant impact on the environment due to their size, scale, and global operations. Diversifying supply chain transportation is a key step in carbon reduction for large distributors like Amazon. Demonstrating proven success towards carbon reduction goals is a key factor for encouraging other businesses to take similar measures. 

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