Program Overview
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In December 2024, Brazil adopted Law N° 15042, which provides a framework for the Brazilian carbon market, including a national Emissions Trading System (ETS), or Sistema Brasileiro de Comércio de Emissões de Gases de Efeito Estufa (SBCE). The SBCE Law sets the foundations for a comprehensive carbon pricing package, including a mandatory monitoring, reporting and verification system, to help ensure that Brazil meets its greenhouse gas emission reduction targets set out in its climate commitments. In addition to establishing an ETS, the SBCE Law establishes a process to facilitate the use of carbon credits to meet trading system liabilities and a process for determining whether credits can be transferred internationally under Article 6 of the Paris Agreement. The PMI is supporting the Government of Brazil in implementing the law. This included support in 2024 through a Just-in-Time grant to develop the SBCE Implementation Roadmap.
Objectives & Activities
PMI is now supporting the Government of Brazil in operationalizing the SBCE Implementation Roadmap, covering key aspects of the carbon market, including:
- Providing analysis and advice to support decision making on detailed policy design
- Supporting the implementation of the monitoring, reporting and verification framework
- Offering knowledge and advice to inform the establishment of governance and enforcement arrangements based on international experiences
- Preparing analysis and developing options to support decisions on establishing supporting infrastructure, including a carbon unit registry
- Preparing plans and strategies to assist with communications, stakeholder engagement, and capacity building
