Abstract
This executive summary encapsulates key findings from a comprehensive analysis of the bilateral trade dynamics between Brazil and China, emphasizing economic and environmental dimensions. Noteworthy insights emerged from scenario analyses, particularly in Scenario_2 and Scenario_3, where the reduction of sectorial emissions successfully aligned with the heightened Chinese demand for exports, resulting in decreased emissions embodied in trade. Critical to the sustainable progression of this bilateral trade relationship is the recommendation to institute a compensation system for emissions in both nations. Grounded in principles of emissions responsibility, this system would inform the development of commercial policies aligned with the imperative of addressing climate change. As a strategic course of action, policymakers are urged to design a framework of commercial policies that establish offset goals correlating with the surge in export demand. A tangible example involves China contributing to financing Brazilian environmental programs, such as the Reducing Emissions from Deforestation and Forest Degradation in Developing Countries (REDD+). Simultaneously, Brazil can reciprocate by fostering sectors conducive to the energy transition in China or by engaging in collaborative projects aimed at enhancing energy efficiency. By adopting such measures, policymakers can foster a symbiotic relationship between economic growth and environmental sustainability, ensuring that the bilateral trade between Brazil and China evolves in harmony with the imperatives of climate change mitigation and ecological responsibility.