Brazil eyes leadership role in global carbon market

Latin American country plans a cap-and-trade system and supports the scale-up of CCS as it prepares to host COP30

Brazil is emerging as a strong candidate to lead the global carbon market. Boasting vast tracts of land for reforestation and REDD+ projects, the government is also implementing a new cap-and-trade carbon market as well as a landmark new legal framework for CCS. Brazil has the highest volume of emissions to abate across all of Latin America. The country is also the third in the region to adopt a regulated carbon market, after Colombia in 2018 and Chile in 2023. Brazil’s new cap-and-trade system (SBCE) will be divided into five phases and projected to be fully operational by the end of 2029. “The law is a critical step toward the decarbonisation of the Brazilian economy and is expected to bui