Brazil establishes specific carbon market rules for aviation sector

The Brazilian Ministry of Finance has published new regulations establishing specific rules for the aviation sector within the country's regulated carbon market. The system, which will be implemented gradually through 2030, requires airlines to reduce greenhouse gas emissions starting in 2027.

Under the new framework, the National Civil Aviation Agency (Anac) will oversee regulation to align with the global Corsia scheme for international flights. Emission reductions are expected to be achieved through the use of Sustainable Aviation Fuel (SAF). For domestic flights, reduction targets will begin with a minimum 1% annual cut during the first two years, increasing by one percentage point annually starting in 2029 until reaching a 10% target in 2037.

The Ministry of Mines and Energy noted that the model allows for the negotiation of environmental attributes separately from physical fuel volumes via a “book and claim” system. This allows sustainability certificates to be sold to various sectors in the voluntary market. The regulation follows a decree signed by President Luiz Inácio Lula da Silva, which delegated oversight of the National Sustainable Aviation Fuel Program (ProBioQAV) to Anac and the National Agency of Petroleum, Natural Gas and Biofuels (ANP).