Brazil could hold 15% of the carbon credits generated annually by 2030.

Secretary Cristina Reis, who leads the newly created Semc (Extraordinary Secretariat of the Carbon Market) of the Ministry of Finance, confirmed, during a presentation at COP30 in Belém, the roadmap for building a stable institutional architecture for the implementation of the SBCE (Brazilian Emissions Trading System).

Semc was formally established in October by presidential decree with the purpose of organizing, planning, and coordinating the actions necessary for the initial phase of SBCE implementation.

The department will temporarily exercise the powers of the SBCE's managing body, focusing efforts on creating the regulatory framework and infrastructure necessary for the system's effective operation.

According to the head of Semc, the carbon market offers good prospects for Brazil, going beyond addressing the climate crisis, but also in the business area. She believes that Brazil can, on a voluntary basis, hold 15% of the market share. carbon credits generated annually in 2030.

Schedule

The roadmap establishes five strategically structured phases to ensure the systematic and gradual implementation of the SBCE. Phase I, planned for 12 to 24 months, focuses on the regulation of the SBCE, encompassing the establishment of governance arrangements, the definition of regulated sectors and inclusion thresholds, the development of the Greenhouse Gas (GHG) Monitoring, Reporting and Verification (MRV) regulation, and the stakeholder engagement plan.

Next, Phase II (12 months) aims to operationalize the emissions reporting instruments. This includes the final identification of regulated entities, the development of the MRV module of the Central Registry, the accreditation of verifiers, and the training of regulated parties.

Phase III (24 months) foresees the implementation of the obligation to submit monitoring plans and emissions reports, in addition to the preparation of the first National Allocation Plan (PNA) and the establishment of rules for the free allocation of Brazilian Emission Quotas (CBE) and market participation.

Phase IV will focus on the free distribution of emission quotas and the development of the secondary market. This stage involves the first allocations of CBEs (Brazilian Central Bank's Bill of Exchange), the establishment of the auction platform, the first compliance cycles, and the preparation of the second National Acquisition Plan (NAP).

The SBCE implementation roadmap will culminate in Phase V, with the full implementation of the system through the first CBE auction.

Thiago Barral

Reinforcing the new structure of the Ministry of Finance, Thiago Barral He was recently appointed Undersecretary for Implementation at Semc. On social media, he noted that he begins the role "with great enthusiasm" and that he "will work alongside highly qualified, ethical people."

Barral, who previously served as Secretary of Energy Transition and Planning at the Ministry of Mines and Energy (MME), will be responsible, among other things, for establishing the rules for MRV (Monitoring, Reporting and Verification) and developing the Central Asset Registry.

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