20th week 2025, Carbon Credit Markets news: Brazil several, Nepal Article 6, Thailand ITMOs, UK and EU interconnect Trading Systems, BRICS too, and Climate Weeks coming up.
- Art Dam
- 2 days ago
- 6 min read
Monday, 26 May 2025.
Carbon markets continue to expand. If last week we had many tips on events and opportunities, this week there is a lot of news about carbon credits coming from Brazil 🇧🇷, Nepal 🇳🇵, Thailand 🇹🇭, BRICS🌏, United Kingdom🇬🇧 and the European Union🇪🇺. In Brazil, carbon credits are gaining strength in reducing rural taxes and fostering income generation in the Ribeirão Preto region. On the other hand, market regulation can impact inflation. The country proposes an international fund for the conservation of tropical forests through carbon credits. In Nepal and Thailand, progress has been made regarding Article 6 and ITMOs to the UNFCCC. On the global stage, the United Kingdom 🇬🇧 and the European Union 🇪🇺 are interconnecting their emissions trading systems, while the BRICS 🌏 are defining their energy cooperation roadmap for 2025-2030. Major events, such as Brazil Climate Investment Week and the London Climate Innovation Forum, are promoting debates on innovation and climate governance. Here are the details of all this.
Environmental Preservation as Currency to Reduce Rural Taxes.
In Brasília, Brazil, the Agriculture Committee of the Chamber of Deputies approved a bill that allows the use of carbon credits to reduce taxes in the agricultural sector. The proposal seeks to encourage this type of effort by rural producers and strengthen the Brazilian carbon market.
In addition to encouraging sustainable practices, the measure brings economic and environmental benefits, promoting tax justice and the recovery of degraded areas.
The article proposes the following text:
“The owner or possessor of rural property that preserves environmental assets represented by native forests or resulting from reforestation may use identified and certified carbon credits to pay taxes that have agricultural activity as a taxable event, in accordance with the regulation.”
Restoring Ecosystems and Generating Income from Carbon Credits in the Ribeirão Preto Region, Brazil
In an important region of the State of São Paulo, rural landowners are selling carbon credits generated through the reforestation of degraded areas.
This is the Ana Primavesi Carbon Program, from the Ubá Institute of Sustainability, which seeks to remove CO₂ from the atmosphere and promote income generation through biodiversity production systems. It operates in the Atlantic Forest and Cerrado biomes, making its operations viable through the sale of carbon credits generated from the restoration of ecosystems and agroforestry systems.
The program has the potential to remove 292,569 tons of CO₂ and positively impact approximately 374 people, contributing to the environmental adequacy of properties and encouraging sustainable practices. It is registered on the Verra platform and is undergoing validation for VCS (Verified Carbon Standard) and CCB (Climate, Community, Biodiversity) certifications.
Check out the details here, in a post on LinkedIn.
Carbon Market in Brazil. Regulation May Impact Inflation, but May Also Open Doors.
Experts discussed the impacts of the regulated carbon market in Brazil, including possible inflationary effects and opportunities for unregulated companies.
At one point in the debates, physicist Shigueo Watanabe Junior, a researcher at the ClimaInfo Institute, commented, “Yes, there will be inflation, but the cost of inaction is higher. The cost of inaction will go to inflation, and the businessman will be the agent who causes it. The cost of inaction comes in the form of the disaster in Rio Grande do Sul, which will fall on all “contribuintes” * the next day. In the end, it is the citizen who pays the bill, but the way in which people are affected is different.”
The Climate Agenda and Business Opportunity seminar, promoted by Folha with support from Vale, can be viewed here.
* The word “contribuintes” in Brazilian Portuguese can create a misleading impression, giving the impression that there is a voluntary action, when in fact taxes are mandatory. This term is consolidated in legislation and public discourse in Brazil 🇧🇷. (Note: text written by artificial intelligence, using the prompt <Why call tax payers as ”contribuintes” in Brazil? What impression does this give?>
Using carbon credits, Brazil proposes an international fund to finance the preservation of tropical forests.
During the meeting of the Leaders' Partnership for Forests and Climate in Guyana, Brazil once again discussed strategies to expand forest financing, highlighting the Tropical Forests Forever Fund (TFFF), a proposal previously presented at COP28.
Guyana was cited as a reference for already monetizing its environmental assets through the sale of carbon credits generated by the conservation of its forests. The Guyanese model shows how this mechanism can be successfully implemented, guaranteeing financial returns while preserving essential ecosystems.
In 2022, Guyana was the first country to issue carbon credits using the ART-TREE standard, with guarantees of environmental and social integrity.
Inspired by this approach, Brazil reinforced the need for international cooperation to structure efficient and sustainable carbon markets. The country advocates that nations with large tropical forests receive adequate financial support, making environmental preservation an economically viable strategy for local populations.
Read more here on the COP30 portal.
Nepal. See what country indicated about Article 6 in its latest NDC deposited.
Nepal is creating rules and training teams to trade carbon credits in the international market, ensuring transparency and sustainability, in addition to indicating that it will explore innovative financial tools, such as carbon markets under Article 6 of the Paris Agreement, green energy bonds, blended finance models and multi-funder trust funds.
Below, in detail, how the country positioned itself regarding Article 6 in its Nationally Determined Contribution (NDC) 3.0 on May 14, and here the full NDC.
“Nepal will prioritize some climate actions for the carbon market under Article 6 of the Paris Agreement while ensuring there is no double counting, and maintaining environment integrity. To engage effectively in the carbon trading under Articles 6.2 and Article 64, including for the implementation of Article 6.8 of the Paris Agreement, Nepal will establish robust institutional frameworks and develop necessary regulations to facilitate carbon trading. Some of these preparations are already reflected in the Environment Protection Act (2019) and Regulation (2020). Capacity-building programs will be conducted to enhance the technical expertise of relevant stakeholders, including government officials, private sector entities, and local communities. Nepal will ensure corresponding adjustments and the establishment of a transparent monitoring, reporting, and verification systems and registries to track carbon emissions accurately and facilitate the issuance of carbon credits”.
Thailand submits its first annual ITMO report to the UNFCCC.
Thailand has submitted its first annual report on ITMOs (Internationally Transferred Mitigation Outcomes) to the UNFCCC, with support from the A6IP Center. This report meets the requirements of Article 6.2 of the Paris Agreement, ensuring transparency in the trading of carbon credits and preventing double counting.
ITMOs are units of emission reduction that can be traded between countries to help meet their climate goals. In the case of Thailand, the first ITMOs were generated by the Bangkok E-bus Programme in cooperation with Switzerland. The authorizations and transfers of these credits are registered in the Thailand Carbon Credit Registry.
UK and EU Interlink Emissions Trading Systems.
The new agreement between the UK and the European Union includes the interlinking of emissions trading systems, strengthening climate cooperation between the blocs. This measure aims to improve the UK's energy security and prevent British companies from being impacted by the EU's carbon tax, the Carbon Border Adjustment Mechanism (CBAM), which will come into force next year.
In addition, this collaboration on the carbon market could generate almost £9 billion for the UK economy by 2040, boosting the energy transition and reducing trade barriers. The agreement also protects British steel exports from new EU tariffs, ensuring competitiveness for the industry.
This partnership also ensures that British companies have access to a more efficient and predictable carbon market.
Roadmap for BRICS Energy Cooperation 2025-2030 and various interconnections.
Last week, Brazil hosted the 10th BRICS Energy Ministerial Meeting, consolidating a consensus on the energy transition and the use of renewable sources.
The Roadmap for BRICS Energy Cooperation 2025-2030 addresses the energy transition and decarbonization as priorities for the group, highlighting the need for advanced technologies to reduce greenhouse gas emissions. The document emphasizes the development and implementation of carbon abatement and removal technologies, respecting national capabilities and priorities.
In addition, BRICS also mentions the importance of regional interconnection and the necessary infrastructure to facilitate energy cooperation and technology exchange between countries.
It is worth remembering that in recent days there have been discussions on “BRICS Interoperability of Carbon Markets”.
Here are the 9 pages of the Roadmap for BRICS Energy Cooperation 2025-2030 from May 17th.
EVENTS and OPPORTUNITIES
📍🇧🇷 Brazil Climate Investment Week 2025, June 5th and 6th. More details here.
📍🇬🇧 London Climate Innovation Forum, June 25th and 26th. Details here.
📍🇧🇷 Congresso SAE BRASIL 2025, October 7th and 8th. Click here.
📢 Global Reporting Initiative (GRI), public consultation on Sector Standards for Financial Services. Until 31/05. Details here.
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