Brazil concludes first regulatory cycle for SBCE carbon market

Brazil has concluded the first regulatory cycle for its Brazilian Emissions Trading System (SBCE) following the end of a public consultation on August 28, 2026. The consultation focused on the monitoring, reporting, and verification (MRV) schedule for emissions.

The proposed framework outlines a gradual integration of 17 economic sectors into reporting obligations across three stages: 2027, 2029, and 2031. The first phase targets high-emission activities including cement, aluminum, steel, refining, oil and gas, pulp, and aviation. The second phase includes mining, electricity, chemicals, food and beverages, glass, ceramics, and waste management. The final phase will incorporate road, rail, and water transport.

Under the legal framework of Law No. 15.042/2024, inclusion in the MRV process does not immediately mandate compliance with emission limits; such parameters will be determined by the National Allocation Plan. Additionally, the development of a Central Registry for the SBCE is underway by Serpro and the Ministry of Finance, with a projected completion by the end of the year.