With Federal Decree nº 11.075/2022, Brazil takes another step toward creating a carbon market
Brazil has published Federal Decree No. 11.075 which establishes the procedures for Sectorial Plans for Mitigation of Climate Change and institutes Sinare, the National System for the Reduction of Greenhouse Gas Emissions.
Since Brazil created its National Policy on Climate Change in 2009, stakeholders have been waiting for regulations that establish a domestic carbon market reflecting international standards, capable of creating an environment conducive to carbon credit negotiations and underpinned by legal certainty.
The announcement of the Decree’s publication in May was welcomed with enthusiasm. Importantly, however, the National Regulated Carbon Credit Market is still not a reality. Before it can be operationalized, much work remains in the form of implementing regulations.