Brazil is entering the implementation phase of its national emissions trading system, the Sistema Brasileiro de Comércio de Emissões (SBCE). Established by Law No. 15,042/2024, the SBCE is intended to support Brazil's climate targets while creating a framework for emissions trading and compliance demand for eligible carbon credits.
This updated edition of IETA's Brazil ETS at a Glance business brief provides an overview of the SBCE's governance structure, implementation timeline, sectoral coverage discussions, allocation mechanisms, trading rules, and recent regulatory developments. It also examines the growing interaction between the emerging compliance market and Brazil's voluntary carbon market.
