Brazil Sets Sights on Carbon Market Regulation by December

Brazil plans to publish regulations for its carbon market by December next year. Cristina Reis, the new head of the ministry's carbon market secretariat, announced the government is also considering the creation of a permanent governing body, which might become a regulatory agency.

Brazil has announced plans to publish comprehensive regulations for its emerging carbon market by December next year, as confirmed by a senior official from the nation's Finance Ministry.

Cristina Reis, who now leads the ministry's freshly established special carbon market secretariat, revealed at a press conference that the government is deliberating the establishment of a permanent governing body to oversee the market, which could potentially evolve into a regulatory agency.

Reis noted the expectation that the carbon market will reach full functionality by 2030 or 2031. Additionally, she highlighted forthcoming public consultations regarding a legislative provision—already approved by Congress—that mandates insurers to dedicate 0.5% of their technical reserves to purchasing carbon credits, a measure now pending Supreme Court consideration. Reis acknowledged the challenge posed by high demand and limited credit supply, suggesting the rule's phased implementation.

(With inputs from agencies.)