The minute
- Law 15,042/2024 created the SBCE, Brazil’s cap-and-trade system, sanctioned in December 2024
- Companies emitting over 10,000 tCO2e/year must report; above 25,000 tCO2e/year, full compliance applies
- Primary agriculture is exempt; implementation is phased over roughly five to six years
Why it matters: Brazil is set to become the largest emerging economy with a regulated carbon price. For companies, reporting obligations arrive before trading does, and the preparation window is now.
The Brazilian Emissions Trading System (SBCE) was established by Law 15,042/2024. It follows the cap-and-trade model used in the EU: the government sets an emissions ceiling and companies trade allowances (CBE) and verified reduction certificates (CRVE) under it.
The rollout is phased: first regulation and reporting infrastructure, then mandatory monitoring and reporting plans, and only later the allowance market itself. ESG Minute will track each step, in English and Portuguese, as the implementing rules are published.