The SBCE (Brazilian Emissions Trading System) is Brazil’s regulated carbon market, created by Law 15,042/2024. It has five implementation phases: structuring in 2025, sector pilots (energy, industry, transport) in 2026-2027, through to full implementation around 2030, when the first National Allocation Plan for allowances takes effect.
Why it matters: it’s the first time Brazil creates statutory domestic demand for carbon credits, in a supply that today is almost entirely earmarked for export.