Brazil will publish detailed regulations for its national carbon market by December next year, a senior Finance Ministry official confirmed on Thursday, marking a key step in the country’s effort to build a fully functioning emissions-trading framework.
Cristina Reis, newly appointed head of the ministry’s special carbon market secretariat, said the government will also determine by that time the structure of a permanent governing body. Options under consideration include establishing a standalone regulatory agency, though the final model remains under discussion.
Reis indicated that Brazil’s carbon market is expected to become fully operational by 2030 or 2031, aligning with the country’s broader climate commitments.
She added that the government will shortly open a public consultation on a contentious provision in the carbon market law — approved by Congress last year — that obliges insurers to allocate 0.5% of their technical reserves to the purchase of carbon credits. The rule is currently before Brazil’s Supreme Court.
According to Reis, the ministry considers the measure difficult to implement due to high demand for credits and limited supply. “This will need to be phased in,” she said, signalling that the government may explore a gradual transition to ease market pressures.
