Brazil: regulation of the carbon credit market

According to information from Agência Senado, the bill that regulates the so-called carbon market, the Brazilian Market for Emissions Reduction (MBRE) was approved by the Economic Affairs Committee (CAE) of the Brazilian Senate last Tuesday (29).

This is Bill No. 412 of 2022, the PL 412/2022, which is now being analyzed by another Senate committee: the Environment Committee (CMA).

Describing the creation of the Brazilian Greenhouse Gas Emissions Management System, PL 412/2022 defines:

• Carbon Credit: title to an intangible right / good, incorporeal, tradable, fungible asset that represents a reduction or removal of one ton of carbon equivalent (1 tCO2e); the metric measure used

• Certification Standard, for carrying out compliance checks

• Retirement, by the Entity responsible for the Registration

• Compensation of Emissions, through the acquisition of Carbon Credits

• Voluntary Market, for market participants without legal obligation to remove or reduce emissions

• The purposes of the MBRE

• Target of net carbon neutrality by 2030 in the Brazilian Amazon

• Proposed taxation: PIS, or PASEP, or COFINS or CSLL not levied on transactions with carbon credits

• The National GHG Market Registry (RNMGEE) will contain the registration of suppliers and users of Carbon Credit Certificates in Brazil

• The whole structure of representations and bureaucracy (!) being created to deal with the theme

Click on the image below to read the text and justifications of PL 412/2022. And by reading the QR-Code itself, you can participate in a quick public consultation (in Portuguese) indicating your position in support of the proposition, whether YES or NO.

And here for an article by Agência Senado.