The minute
- The SBCE was created by Law 15,042/2024, signed on 11 December 2024, with five implementation phases through full effect around 2030
- The structuring phase (rules and system integration) runs in 2025, with sector pilots in energy, industry and transport in 2026-2027
- The system creates domestic carbon credit demand in a supply that today is almost entirely earmarked for export
Why it matters: Large emitters in the pilot sectors will feel the obligation to measure and report before any allowance ever comes into play, so waiting for the system to “fully start” before preparing means leaving it to the last minute.
The SBCE’s five phases
The law provides for five phases: structuring (defining rules and the governing body), operationalization, monitoring and reporting by operators, allowance allocation (National Allocation Plan) with the start of the asset market, and full implementation.
Practical timeline
Structuring in 2025, sector pilots in energy, industry and transport in 2026-2027, and the system fully established around 2030, when the first National Allocation Plan takes effect.
Who gets affected first
Large emitters in the pilot sectors (energy, industry, transport) are the first to feel the obligation to monitor and report emissions, even before any allowance purchase requirement kicks in.
Why it matters for exporters
A carbon price paid under the SBCE can be deducted from mechanisms like the EU’s CBAM, which creates an extra incentive for exporting companies to participate in the system now.
Frequently asked questions
Will every Brazilian company need to participate in the SBCE?
No, the system focuses on large emitters in specific sectors, starting with the energy, industry and transport pilots.
When will the SBCE be fully in effect?
Full implementation is expected around 2030, after the structuring and pilot phases.
Does the SBCE replace Brazil’s voluntary carbon market?
No, the two markets coexist: the SBCE is the regulated market (mandatory for covered sectors) and the voluntary market keeps running in parallel.
Read next: what the SBCE is, in a quick definition.
Read next: the difference between voluntary and compliance carbon markets.