News

Brazil Launches Public Consultation on Rules for International Transfers of Carbon Credits

The Brazilian Ministry of the Environment and Climate Change (MMA) has launched a public consultation on a proposed regulation governing the international transfer of carbon credits. Contributions may be submitted through the Brasil Participativo platform until 6 August 2026.

 

The proposal is intended to implement Article 51 of Law No. 15,042/2024, which established Brazil’s Emissions Trading System (Sistema Brasileiro de Comércio de Emissões – SBCE). Under the law, the parameters and conditions for international transfers are to be defined by the Interministerial Committee on Climate Change (Comitê Interministerial sobre Mudança do Clima – CIM), the body responsible for setting the overarching guidelines of the SBCE.

 

The consultation addresses the framework for the international transfer of Internationally Transferred Mitigation Outcomes (ITMOs) under Article 6 of the Paris Agreement. ITMOs allow acquiring countries to use transferred emission reductions toward the achievement of their own nationally determined climate commitments.

 

Among the key features of the proposed regulation are:

 

• a global cap of 50 million tonnes of carbon dioxide equivalent (tCO₂e) available for international transfer;
• the possibility of periodically reviewing this cap, taking into account Brazil’s emissions trajectory, progress toward its Nationally Determined Contribution (NDC), and the actual volume of authorized transfers;
• the adoption of a positive list of eligible activities that may qualify for authorization to transfer ITMOs internationally;
• the possibility for the Brazilian Designated National Authority (DNA) to enter into Future Transfer Agreements (FTAs) with participating countries or authorized entities;
• the use of public calls for proposals to select projects and programmes eligible for authorization; and
• a limit whereby no more than 50% of the mitigation outcomes generated by each project or programme between 2031 and 2035 may be authorized for international transfer.

The proposal represents an important step in the operationalization of Brazil’s carbon market and provides the first detailed indication of how the Brazilian government intends to manage authorizations for international transfers under Article 6. The consultation also offers stakeholders an opportunity to influence the regulatory framework before the rules are finalized.