Brazil Moves Forward with Regulated Carbon Market Legislation
Brazil Moves Forward with Regulated Carbon Market Legislation
Brazil is taking decisive steps to establish its regulated carbon market, a strategic tool to drive the green economy, attract foreign investment, and reinforce the country’s commitment to climate goals.
In December 2024, the federal government submitted a draft bill to the National Congress to create the Brazilian Emissions Trading System (SBCE). This new framework will allow companies in high-emission sectors to trade carbon credits under a structured and government-supervised system.
According to the Ministry of Environment and Climate Change, the SBCE will enable Brazil to better integrate into the global carbon market, offering legal certainty and making the country more attractive to international investors. The initiative aligns with the Paris Agreement and broader international climate goals.
The proposed regulation also creates incentives for businesses to adopt sustainable practices, allowing sectors like energy, transportation, and agribusiness to generate carbon credits by reducing emissions. These credits may be traded both domestically and internationally, opening new revenue streams while supporting sustainable development.
📍 The bill is being processed under an urgent regime and has received positive support from business leaders, environmental advocates, and the agribusiness sector, who see the SBCE as a balanced solution with real economic impact.
If approved in 2025, Brazil could position itself as one of the world’s leading issuers of carbon credits, leveraging its biodiversity and global influence in ecological transition.
🌍 Equity views this development as a strategic opportunity for climate-positive investment and sustainable project generation. We remain engaged in identifying high-impact initiatives that create both environmental and financial value.
Sources consulted:
1. Brazilian Government – gov.br
2. Valor Econômico – valor.globo.com
3. Federal Senate News Agency – senado.leg.br