The Federal Senate's Environment Committee (CMA) unanimously approved Bill 412/2022, which aims to regulate the carbon market in Brazil. The project establishes the creation of the Brazilian Greenhouse Gas Emissions Trading System (SBCE) as part of an effort to meet the goals of the National Policy on Climate Change and related international agreements.
The legislation requires companies that emit more than 10 thousand tons of carbon dioxide (CO2) per year to present a monitoring plan and a report on greenhouse gas emissions and removals. Companies that emit more than 25 thousand tons of gases annually will also have limits established for their emissions, in addition to meeting the previous requirements. Failure to comply with the rules can result in fines of up to R$ 5 million or 5% of the company's gross revenue, among other sanctions.
The project establishes a transitional period of SBCE regulation, during which operators will have up to two years to submit emission plans and reports, before being required to meet their reduction targets. According to Senator Leila Barros, the project's rapporteur, the carbon market moved around US$ 100 billion in 2022 at a global level.
The vote on the project was initially scheduled for September 27, but was postponed due to an agreement by parliamentarians linked to the agribusiness sector. In the new version of the report, agribusiness was excluded from regulation based on the justification of being a food security sector and uncertainties in estimating emissions. The measure was praised by representatives of the ruralist bench, with senator Tereza Cristina (PP-MS) stating that the sector is working to establish metrics for future inclusion in the market.
Entities linked to the renewable energy sector welcomed the approval of the project, highlighting its potential to promote sustainable businesses and generate jobs. The president of the Brazilian Business Council for Sustainable Development (CEBDS), Marina Grossi, considered the measure strategic for the country.
Bill 412/2022 will now go to the Chamber of Deputies, where it will be discussed and voted on before coming into force. The SBCE regulation is seen as an important step in Brazil's transition to a low-carbon economy and the fight against climate change.
