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Brazil · Emissions trading system

Brazilian Greenhouse Gas Emissions Trading System (SBCE)

Law No. 15,042/2024 created Brazil's regulated emissions trading system, the SBCE, with phased implementation that starts with regulation-making by the government. As of mid-2026 the government was consulting on sector coverage and setting up governance bodies; compliance obligations have not yet started.

In rulemakingsince 12 Dec 2024Verified 4 Oct 2026

Law No. 15,042, signed on 11 December 2024 and published in the Diário Oficial da União on 12 December 2024, institutes the SBCE and amends several existing laws. It sets thresholds of 10,000 tCO2e a year for monitoring and reporting obligations and 25,000 tCO2e a year for compliance obligations. The system is to be overseen by the Interministerial Committee on Climate Change and operated by an SBCE managing body supported by a technical advisory body.

Implementation is phased: one to two years for the government to adopt implementing regulations, a phase for regulated entities to operationalise monitoring and reporting, and a phase in which monitoring and reporting obligations apply, before full operation. Decree No. 12,677 (October 2025) created an Extraordinary Secretariat for the Carbon Market in the Ministry of Finance. In May 2026 resolutions set up technical working groups, and a sectoral proposal envisaged coverage from 2027 for pulp and paper, iron and steel, cement, primary aluminium, oil and gas, and aviation.

Legal journey

From proposal to operation

  1. Proposed

    Senate Environment Committee approves carbon market bill PL 412/2022

    senado.leg.brOfficial
  2. Proposed

    Senate plenary approves revised carbon market bill (PL 182/2024)

    senado.leg.brOfficial
  3. Enacted

    Law No. 15,042 signed, creating the SBCE

    planalto.gov.brOfficial
  4. Rulemaking

    Law published and in force, opening a one-to-two-year regulation phase

    planalto.gov.brOfficial
  5. Milestone

    Decree 12,677 creates a Finance Ministry secretariat to draft SBCE regulations

    icapcarbonaction.com
  6. Milestone

    Sector coverage proposal presented; resolutions set up SBCE advisory working groups

    icapcarbonaction.com

Each milestone links to the page it was checked against. Dates are given only to the precision the source supports.

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