On Wednesday evening, November 13, Brazil's Federal Senate passed a regulatory framework of historic importance in the fight against climate change: Bill (PL) 182/2024, which establishes guidelines for the country’s carbon credit market. This approval not only structures the Brazilian Emissions Trading System (SBCE) but also drives Brazil toward a more sustainable economy, aligning it with global decarbonization goals. Following extensive debates and revisions led by Senator Leila Barros, the bill now moves to the Chamber of Deputies, where swift progress is expected given the urgency of the issue and established agreements to ensure its passage.
PL 182/2024 represents a critical step in strengthening Brazil’s voluntary carbon market (VCM), an increasingly strategic sector for the green economy and the country’s global positioning. The VCM allows companies and investors to offset greenhouse gas (GHG) emissions by purchasing carbon credits tied to environmental preservation and emission reduction projects. For Brazil, which holds vast potential in biodiversity and conservation, regulating the carbon market is not only a sustainability measure but also an economic strategy to attract investment and increase the value of standing forests, particularly in the Amazon.
During the vote, it was also highlighted that the SBCE will help Brazil meet its Paris Agreement targets while avoiding potential export penalties such as the European Union’s Carbon Border Adjustment Mechanism (CBAM). With a structured regulatory approach, Brazil seeks to align with more advanced economies on carbon pricing, enhancing its leadership in the global environmental agenda. This regulatory framework lays the groundwork for diverse economic sectors—industry, agriculture, and waste management—to generate carbon credits and adopt emission-reducing practices. The SBCE is positioned as a pivotal tool to transform Brazil into a model of green economy, bringing both environmental and economic benefits by fostering a low-carbon economy that encourages sustainable technologies and practices on a large scale.
Bill 182/2024 establishes the Brazilian Emissions Trading System (SBCE), which regulates the buying and selling of carbon credits in Brazil through a governing body and an Interministerial Climate Change Committee, ensuring transparency and legal security for the market. The bill outlines standards to prevent “double counting” of credits, mandates certification and verification of emission reductions, and safeguards the rights of traditional and Indigenous communities, while also providing fiscal incentives and directing resources toward environmental preservation.
Implementing PL 182/2024 will require cooperation between the government and regulated sectors to ensure clear and efficient regulation, preventing investor insecurity and solidifying Brazil's leadership in the global carbon market. The SBCE is expected to attract foreign investment, drive the energy transition, and promote sustainable agricultural practices, furthering Brazil's role in the environmental agenda and sustainable economic development.
Amazon Connection Carbon, a leader in Brazil’s voluntary carbon market, recognizes that the new regulatory framework (PL 182/2024) establishes clear standards for emission reduction projects, strengthening Brazil as a reliable provider of carbon credits. This regulation enhances investor confidence and promotes initiatives that protect the Amazon, generating economic benefits for traditional communities and cementing the country’s position as a global environmental leader.
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