News and Business
Brazil enacts law to regulate carbon market
A bill has been signed into law without vetoes by Brazil's President after being approved by Congress in November
Subjects
On December 12, 2024, Law No. 15,042/2024 was published in Brazil to create the Brazilian Greenhouse Gas Emissions Trading System (SBCE). Although the law takes immediate effect, the SBCE itself will be implemented gradually. With the law now published, a deadline has begun for regulating it, with such regulations set to be crucial for the system to function properly.
As the law was enacted without vetoes, it remains identical to the bill approved in the House of Representatives last month, which in turn was virtually the same as the one previously approved in the Senate. The only difference regarded a provision concerning the insurance sector, which mandates that insurance companies, open-ended private pension funds, capitalization companies, and legal reinsurers annually invest at least 1% of their technical reserves and provisions in environmental assets specified in the bill (Brazilian Emission Quotas – CBEs, Verified Emission Reduction or Removal Certificates – CVREs, and carbon credits) or in investment funds focused on environmental assets.
An exclusive publication from Mattos Filho outlines the main aspects of the SBCE:
For further information on this topic, please contact Mattos Filho’s Environmental Law & Climate Change practice area.
