Brazil’s lower house of Congress approved a bill on Tuesday establishing rules for a national carbon market. The legislation, which previously cleared the Senate, now requires only President Luiz Inácio Lula da Silva’s signature to become law.
The proposed framework introduces two types of carbon credit markets: a regulated market that sets emission caps for specific economic sectors and a voluntary market. These credits allow companies to offset part of their greenhouse gas emissions by financing projects that reduce climate pollution.
As home to a significant portion of the Amazon rainforest—critical for absorbing vast amounts of carbon dioxide—Brazil plays a vital role in global climate change mitigation.
The approval aligns with recent developments at the United Nations COP29 climate talks in Azerbaijan, where nations agreed on rules paving the way for a UN-backed global carbon market that could launch as early as next year.
