Brazil will generate carbon credits through conservation and restoration projects in public forest concessions, the government said.
Brazil's president Luiz Inacio Lula da Silva signed a decree on 17 October that allows projects to adopt internationally recognized certification methodologies to generate credits in the Brazilian emissions trading system (SBCE). With this law, private initiatives managing public forests will be able to choose the certification method under the reducing emissions from deforestation and degradation (REDD+) framework, instead of just the national regulation system.
The certification enables international recognition to transfer carbon credits in the global market without renouncing national regulations, according to the environment ministry. It also allows for predictability and legal security that can help draw private investments into Brazil's climate agenda.
Brazil established the extraordinary secretariat for the carbon market within the finance ministry on 15 October. The secretariat aims to promote sustainable development and consolidate the decarbonization market by 2030, but faces hurdles such as establishing criteria for carbon credits and guidelines for monitoring.
Brazil's nationally determined contribution under the Paris Agreement aims to end deforestation and restore 12mn hectares of degenerated forests by 2030.
