INSUBCONTINENT EXCLUSIVE:
Brazil is set to launch a regulated carbon credit market, a significant move that could reshape its approach to greenhouse gas
The new law approved by Congress aims to hold these companies accountable and promote sustainability.The carbon market, known as the
Brazilian System for Trading Greenhouse Gas Emissions (SBCE), assigns a financial cost to emissions
This encourages firms to either reduce their pollution or invest in environmental projects.The goal is clear: companies that exceed
pollution limits will pay for their emissions, driving them towards greener practices
The Ministry of Finance expects the market to be fully operational by 2030.It projects a GDP boost of 5.8% over the next decade
World Bank estimates suggest that this initiative could cut annual emissions by 100 million tons by 2040 and reach 130 million tons by
2050.Brazil Launches Carbon Market to Cut Emissions by 15%
market for companies with mandatory reduction targets and a voluntary market for those aiming to meet their own sustainability goals.This
dual approach broadens participation while addressing regulatory needs
The implementation will unfold in five phases, beginning with drafting regulations and establishing measurement tools for emissions.A
crucial aspect will be the allocation of emission quotas, granting companies the right to emit specific amounts of CO2
As Brazil moves forward with this initiative, it joins a global trend where carbon markets are becoming increasingly prevalent.With 36
existing markets worldwide, Brazil aims to keep pace with international standards
This development is more than just a regulatory change; it represents an opportunity for Brazil to align its economic and environmental
goals.By fostering responsible self-regulation, the country can not only combat climate change but also stimulate economic growth through
innovation in sustainability practices.
