Brazil sets sights on regulated carbon market

Authorities eye design of EU ETS as they seek legislation to help fast-track decline in emissions through a cap-and-trade market

The Brazilian government is getting serious about strengthening the country’s nascent carbon market. Speaking at the COP28 summit in Dubai, President Luiz Inacio Lula da Silva promised to slash domestic emissions by 53% by 2030, before achieving carbon neutrality by mid-century. The government had also hoped to pass new carbon regulations in time for the summit. Beyond legislation promoting carbon credit projects and the voluntary carbon market (VCM), Brazil lacks distinct regulations at either the federal or state level. For heavy industry, there is still little incentive to cut carbon emissions and few punishments for exceeding limits. However, this could soon be about to change. In Octobe