Brazil has taken a decisive step forward in its climate agenda with the approval by President Luiz Inácio Lula da Silva of the law regulating the country's carbon credit market. Published in the Official Gazette of the Union this Thursday (12) , the measure creates the Brazilian Greenhouse Gas Emissions Trading System (SBCE), establishing clear rules for controlling emissions and encouraging more sustainable practices in the production sector.
The new legislation not only introduces mandatory limits on greenhouse gas emissions , but also promotes an offsetting system that could stimulate a significant transition to a low-carbon economy.
Brazilian Emissions Trading System: a milestone for the productive sector
The SBCE will be responsible for regulating the ceilings on pollutant gas emissions, as well as managing the trading of carbon credits. Each credit represents a ton of carbon dioxide equivalent (CO2e) saved , which can be traded by companies or states.
The system's dynamics are based on a double incentive: companies that prove reductions in CO2e emissions will be rewarded with carbon credits, while large emitters that exceed the limits will have to acquire these credits , called Brazilian Emissions Quotas (CBE), to offset the environmental impact.
This mechanism aims to encourage the productive sector to invest in cleaner technologies and reduce its carbon footprint. According to experts, the measure also elevates Brazil to a new level in environmental governance and in fulfilling international climate-related commitments.
Regulated and voluntary market: opportunities and challenges
The new law makes an important distinction between the regulated market, which will be supervised by the State, and the voluntary market, which follows standards defined by private companies . While the former covers agents required to offset emissions, the latter is aimed at voluntary initiatives, generally motivated by ESG (environmental, social and governance) strategies.
States will have autonomy to implement local carbon markets, including the management of credits generated in private areas. This decentralization can foster regional initiatives and attract investments aligned with sustainability.
The challenge, however, will be to ensure the effectiveness of the system, avoiding fraud and ensuring that the credits actually reflect real reductions in emissions . In addition, integration with international carbon markets could expand opportunities for Brazil, which already stands out as one of the largest potential issuers of credits due to its biodiversity and natural resources.
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