Brazil reports third consecutive year of greenhouse gas emission reductions

Brazil's greenhouse gas emissions fell by 6% in 2025, reaching 2.06 billion tons compared to 2.19 billion tons in 2024. This marks the third consecutive annual decline under President Luiz Inácio Lula da Silva's administration, driven primarily by a reduction in deforestation within the Amazon and Cerrado biomes.

Net emissions, which account for carbon absorbed by protected areas and regenerating vegetation, dropped by 9% to 1.4 billion tons—the lowest level recorded since 2012. While this progress is significant, the Observatório do Clima notes that Brazil remains approximately 7% above the 1.32 billion ton limit set for 2025 under its Nationally Determined Contribution (NDC) to the Paris Agreement.

Parallel to these emission trends, Brazil is advancing its regulated carbon market. Following the creation of the Brazilian Emissions Trading System (SBCE), the government is establishing rules for monitoring, reporting, and verification (MRV). A gradual implementation is expected to begin in 2027, initially targeting sectors such as pulp and paper, cement, aluminum, oil and gas, steel, and aviation.