Brazil passed a law in December 2024 that creates a regulated carbon market and sets rules for voluntary credits, including how they are taxed and when they count as securities. The regulated market is still being set up. Anyone can already buy voluntary credits. This guide explains both. For other countries, see our countries hub.
Brazil’s compliance market (SBCE)
Law 15.042 of 11 December 2024 created the SBCE, the Brazilian Greenhouse Gas Emissions Trading SystemSource 5. It has two assets, each worth 1 tonne of CO₂eSource 5:
- CBE (Brazilian Emissions Quota): an allowance, the right to emit 1 tCO₂e, granted free of charge or for a fee.
- CRVE (Certificate of Verified Emission Reduction or Removal): 1 tCO₂e actually reduced or removed, under an accredited methodology and registered in the SBCE.
Operators emitting more than 10,000 tCO₂e a year must submit a monitoring plan and report their emissions and removals, and those above 25,000 tCO₂e a year must also report periodic reconciliation of their obligationsSource 5. Primary agricultural production is not a regulated activity under the SBCESource 5.
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| Phase | What happens |
|---|---|
| I | 12 months, extendable by 12, to issue the regulations |
| II | 1 year to put emissions reporting tools in place |
| III | 2 years in which operators only monitor and report |
| IV | First National Allocation Plan, with CBEs given free |
| V | Full implementation |
As of Oct 2026
The phases are set out in article 50 of the lawSource 5. The Interministerial Committee on Climate Change is the SBCE’s deliberative body and approves the National Allocation PlanSource 5. In October 2025 a decree created the Extraordinary Secretariat for the Carbon Market in the Ministry of Finance, to act as the SBCE’s managing body until a permanent one is createdSource 6. A December 2025 decree regulates the SBCE’s permanent technical advisory committee, chaired by the Ministry of FinanceSource 7.
Brazil’s 2035 NDC sets an economy-wide target of cutting net greenhouse gas emissions by 59% to 67% below 2005 levelsSource 4.
Voluntary credits under the new law
The law defines the voluntary market as trades in carbon credits or SBCE assets agreed freely between parties for voluntary offsetting, which do not lead to corresponding adjustments in national emissions accountsSource 5. A voluntary credit is recognised as a CRVE only if it uses an accredited methodology, is measured, reported and verified by an independent entity, and is entered in the SBCE Central RegistrySource 5. If SBCE assets are used for voluntary offsetting, they must be cancelled in that registrySource 5.
The Ministry of Finance’s carbon market secretariat is responsible for creating, maintaining and running the SBCE Central RegistrySource 6. Its legal basis is listed on the secretariat’s websiteSource 8.
Rights of Indigenous peoples and traditional communities
The law guarantees Indigenous peoples and traditional communities the right to sell CRVEs and carbon credits from their lands, subject to free, prior and informed consultation under ILO Convention 169, paid for by the developerSource 5. They must receive at least 50% of credits from removal projects and at least 70% from market-based REDD+ projectsSource 5. If you buy Brazilian forest credits, ask the seller how these rules were met.
Buying voluntary credits in Brazil
Individuals and companies buy from online retailers, marketplaces and brokers. Carbon credits and SBCE assets traded on the financial and capital markets are securities under the CVM’s rules, but private trades outside those markets are not subject to CVM regulationSource 5.
Before you pay, ask which registry holds the credits and check that they are retired in your name. Compare providers on registry serials and certificates in where to buy.
Reduce first, then offset
Cut what you can before you buy, and use credits for the emissions that are left. Our guide for individuals shows how to size a purchase, and voluntary vs compliance markets explains how the two markets differ.
Claims and tax notes
Tax on carbon credits
Gains from selling carbon credits are taxed as income under the developer’s own tax regime, as net gains when sold on exchanges, or as capital gains in other casesSource 5. The revenue from these sales is not subject to PIS/Pasep or CofinsSource 5. Converting a carbon credit into an SBCE asset is not a taxable eventSource 5.
Companies taxed on actual profit (lucro real) can deduct the costs of credits they cancel, voluntarily or for compliance, if the general deductibility rules are metSource 5. Get professional advice.
What you can say about offsets
CONAR’s advertising code requires climate claims to state their basis, whether they rest on reducing emissions, removing carbon or offsetting, and which stage of the life cycle they coverSource 9. Claims must make clear whether, and how far, a company actually cut its own emissions or relied on offsetting, so consumers aren’t led to think a product generates no emissionsSource 9.
The Consumer Defence Code treats as misleading any advertising that is wholly or partly false, or can mislead consumers in any other way, including by omissionSource 10.
How to check quality before you buy
Each Verra credit represents one tonne of CO₂e reduced or removedSource 1, and registries such as Gold Standard’s track every credit from issuance to retirementSource 2. That makes three checks possible before you pay:
- Is it in a public registry? Ask for the registry and serial numbers, and check the credits are retired in your name.
- Is the method credible? The ICVCM’s Core Carbon Principles set a quality threshold, and credits that meet it can carry the CCP labelSource 3.
- Is the seller clear? A good seller says what you are buying, what it charges and how and in whose name it retires credits.
Our guide to how to verify carbon credits shows the steps, and carbon credit scams lists the warning signs.
Article 6 deals
Under the law, credits used for international transfers must be registered as CRVEs and need prior authorisation from Brazil’s designated national authority, and the climate committee will set the conditions for authorising transfersSource 5. Brazil’s NDC says such transfers may be authorised up to the level of its 59% target, followed by corresponding adjustmentsSource 4.
Switzerland lists a non-binding memorandum of understanding with Brazil, dated 18 December 2025, among its bilateral climate agreementsSource 11. We found no official record of a binding bilateral Article 6 agreement signed by Brazil. See our Switzerland guide for how Swiss agreements work, and compare Canada and New Zealand for other approaches.
How to buy, step by step
Step 1: Work out what to cover
Estimate your footprint and cut what you can first.
Step 2: Choose a project type
Pick credits from a standard and project type you trust.
Step 3: Pick a provider
Compare retailers, marketplaces and brokers on registry serials and certificates.
Step 4: Check the registry record
Confirm the credits are retired in your name on the registry.