Chamber approves project that regulates carbon market in Brazil

In a decisive vote of 301 in favor and 81 against, the Brazilian Chamber of Deputies approved on Thursday (21/12) a proposal that regulates the carbon market in the country (PL 2148/15). The legislation introduces the Brazilian Greenhouse Gas Emissions Trading System (SBCE), establishing emission ceilings and creating a market for the trade of carbon credits.

The rapporteur, Congressman Aliel Machado, consolidated texts discussed in the Chamber and PL 412/22, which the Senate approved in October 2013. The bill, as passed by the deputies, now returns to the Senate for a review of the changes made.

The legislation sets a limit on greenhouse gas emissions for companies. Those failing to meet the set targets can offset their emissions by purchasing carbon credits. Companies emitting below the stipulated limit are authorized to sell the surplus in the market.

“The carbon market is crucial for Brazil to fulfill its commitments under the Paris Agreement, reducing emissions, lowering the cost of decarbonizing productive sectors, promoting technological innovation, and reforesting degraded areas,” explained Rodrigo Rollemberg, Secretary of Green Economy, Decarbonization, and Bioindustry at the Ministry of Development, Industry, Trade, and Services (MDIC).

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