IETA Extra Edition. Quotes and Highlights from the Latin America Climate Summit and 2 Reports on Carbon Markets in the Region.
- Art Dam
- Aug 30
- 9 min read
Updated: Sep 2
Saturday, August 30, 2025.
Last week, from the 26th to the 28th, the International Emissions Trading Association (IETA) held its Latin America Climate Summit 2025 in São Paulo, Brazil.
In addition to several panels and intense networking with a significant audience of representatives from various countries throughout Latin America, the event also marked the launch of two new documents:
Carbon Market Frameworks for Brazil (with English and Portuguese versions)
Recommendations to Strengthen Carbon Markets in Latin America and the Caribbean (Spanish version available soon)
Carbon Credit Markets was invited to the event and elaborates on some key topics below. We will first discuss the new document and then discuss some panels. Unmissable content, with quotes that only those who were there can share with you.
Carbon Market Frameworks for Brazil
The IETA document highlights that Brazil is at a strategic moment to structure its carbon market, driven by advances such as the Brazilian Emissions Trading System (SBCE), the Brazilian Sustainable Taxonomy, and the climate target (NDC) of reducing emissions by between 59% and 67% by 2035 compared to 2005—equivalent to 850 to 1,050 million tCO₂e.
The country's emissions profile is unique: while almost 90% of its electricity mix is already renewable, around 40% comes from land-use changes. This reflects the country's relatively recent history, since its Portuguese colonization a little over 500 years ago, and the fact that it is following a different path from other equally "young" countries, such as the United States.
Brazil has a carbon intensity of 0.15 kgCO₂/USD of GDP, below the global average (0.29), but faces risks with mechanisms such as the European CBAM, which could generate losses of up to US$444.3 million in exports and a 1.49% drop in GDP.
IETA suggests that to comply with the NDC, curb illegal deforestation by 2030, and restore 12 million hectares of native vegetation, Brazil must integrate the SBCE, the voluntary market (VCM), and Article 6 of the Paris Agreement. The document proposes three paths: using the SBCE as a seal of integrity for the VCM; applying Article 6 to decarbonize hard-to-slaughter sectors; and directing Article 6 toward nature-based solutions, reinvesting revenues in restoration and combating deforestation.
The text also points out that, globally, 38 carbon pricing systems were active in 2025, generating approximately US$70 billion in 2024, and that the accumulated demand for ITMOs could reach 685 MtCO₂e by 2030, although only a little over 11,000 had been issued by June 2025.
Download the IETA report, here in Portuguese and here in English.
Recommendations do Strengthen Carbon Markets in Latin America and the Caribbean
The document shows that Latin America and the Caribbean (LAC) currently has 16 operational carbon pricing instruments (CPIs) and 7 under development, including 18 carbon taxes and 5 emissions trading systems (ETS), 13 of which allow the use of credits as a flexibility mechanism.
Furthermore, 8 countries already have regulations for the voluntary carbon market (VCM) and voluntary GHG measurement programs, and 12 countries have advanced regulations or bilateral agreements for transactions under Article 6 of the Paris Agreement. The region accounts for 20% of the world's operational CPIs, generates 23% of global carbon credit retirements and 24% of credit issuances, and will attract US$1.5 billion in investments for carbon projects in 2023—led by Mexico (26%), Brazil (24%), Colombia (20%), and Peru (6%).
Despite representing only 8% of global emissions, LAC is the second-largest recipient of investments in carbon projects, behind only Southeast Asia.
The text also highlights that the region has eight operational registries and nine legally mandated but not yet implemented registries, essential to ensuring integrity, traceability, and avoiding double counting. Only six countries (Belize, Brazil, Cuba, Ecuador, Saint Lucia, and Uruguay) have submitted their new NDC 3.0, and two (Guyana and Suriname) have submitted initial reports under Article 6, with Guyana's credits eligible for CORSIA. Also read "NDC Updates: Has Your Country Submitted?"
The document recommends harmonizing CPIs to reduce costs and increase market confidence, adopting international integrity standards (such as PACM, ICROA, ICVCM, and CORSIA), strengthening public-private governance, and ensuring legal certainty to attract investment. It also suggests allocating part of CPI revenues to system operation and maintenance, as is the case in Brazil, which allocates 15% of ETS revenues for this purpose.
See the report below.
Latin America Climate Summit 2025
“Article 6, in short, incipient in the region”
This was the highlight of Martin Rabbia (RCC Caribbean) in the panel Around the World of Carbon Markets in 60 Minutes, despite adding the existence of 17 bilateral agreements, 22 countries with Designated National Authorities and highlighting the potential of blue carbon.
In the same Workshop 1, Lucien Georgeson (MSCI) highlighted the growing pressure for carbon credits with integrity and traceability, while Xana Maunze (Belgian Agency for International Cooperation) warned of the proliferation of low-quality projects and the need to empower developers. Iule Arruda (Louis Dreyfus Company) demonstrated that carbon finance can transform agribusiness, integrating offsetting and direct integration to add value and sustainability. Oriana Ballesteros (EcoAct/Schneider Electric) advocated for the scaling of projects and investments in regulation and capacity building, especially in Africa, which is beginning to attract capital—reinforcing that the future of the market will depend on balancing scale with integrity and innovation with inclusion.
“Jurisdiction is at the heart of the integrity of Brazilian voluntary credits… part of the solutions to the problems will come from the relationship between the regulators involved”.
Ludovino Lopes (UniDroit) commented on the panel Global Rules, Local Realities: Legal Challenges for Carbon Markets in Latin America & The Caribbean. He also presented the global project to define the legal nature of verified/voluntary credits and create uniform legal principles. In cooperation with the World Bank, UNCITRAL, and the Hague Conference, final delivery is scheduled for nine months.
In the same Workshop 2, Renata Amaral (Trench Rossi Watanabe) warned of critical uncertainties regarding the ownership and integrity of carbon credits, land and mining conflicts in Brazil, and the competition between voluntary credits and more expensive ITMOs, as well as the need for consent from indigenous communities. Luiz Gustavo Bezerra (Mayer Brown) celebrated the launch of public carbon pricing policy in the country and advocated for harmonization with the voluntary market, envisaging the creation of a national regulatory body. Juan Pedro Cano (Argentine Carbon Board) reported on the efforts of more than 50 members to approve a national law, facing challenges similar to those in Brazil. Ricardo Lopes (Verifit) highlighted the example of Colombia, which combines a carbon tax with offsets and required local registration of international certification bodies.
“The sheer number of standards <for carbon credits> poses a challenge to auditors. The calculation tables are unclear and unclear, and sometimes not even published by the registries. Not to mention the co-benefits, where is the money going?”.
These were comments from experienced Geisa Príncipe (EcoLance) at Workshop 3 – Carbon Accounting Roundtable. She added that, even with advances like satellites and blockchain, transparency is still limited, and land ownership remains critical in projects like REDD+.
At the same workshop, Katie Sullivan (IETA) highlighted that, over 20 years, carbon accounting has evolved into a patchwork of standards—from the IPCC and GHG Protocol to IFRS S2—reflecting regulatory, voluntary, and sectoral objectives. Catavento/CEBRI warned that the lack of global standardization requires interoperability and recommended that COP30 define a clear objective, improve global rules, and create a specialized technical panel. Magnus Chaib (KPMG Brazil) compared the arrival of regulatory carbon accounting to the trajectory of IFRS and cited OCPC10 as a step toward international convergence. Carlos Cordova (S&P Global) summarized the three pillars of the field—frameworks, registries, and public policies—and Marina Pittella (Itamaraty) revealed that Brazil is working on accounting for renewable fuels and integration with CORSIA and maritime navigation, with COP30 structured around four fronts, including Article 6 and catalytic instruments, such as carbon credits.
“The roots of the tree are much larger than the crown. It's not from us to them, it's from them to them. There is no true autonomy without economic autonomy.”.
This was Monique Vanni's position at the Workshop 4 Latin America Climate Summit Media Training, after reporting on the pioneering work in conservation and REDD+ projects, massive public consultations - 700 people in Brazil, 1 million in India - and the philosophy of Wildlife Works Carbon, which despite its main corporate headquarters in California, United States, has a prominent presence in Kenya, Indonesia, Colombia, Brazil, India and the United Kingdom.
At the same workshop, Eduardo Ferreira (World Bank) highlighted that there are already 80 carbon pricing mechanismsworldwide, covering 28% of global emissions by 2025 and mobilizing US$ 102 billion in public revenues in 2023, with the average price nearly doubling over the past decade (US$ 10 → US$ 19/tCO₂e). In Latin America, there is 1 implemented ETS, 5 carbon taxes, and another 5 ETSs under development, with US$ 9 billion in planned investments and leadership in nature-based solutions. In 2024, credit retirements for regulatory purposes jumped to 24% (vs. 9%in 2023), but the market holds a surplus of nearly 1 billion unretired credits, two-thirds issued before 2022. Despite the slight overall drop in prices, OTC natural removal credits maintained a premium, reaching US$ 10.4/tCO₂e for forests and land use.
Mateo Estrada (OPIAC) presented Colombia's socioeconomic reality, marked by challenges that directly affect local and indigenous communities, while Caio Gallego (Ambipar) presented nature-based solutions such as ARR, ALM, REDD+, Blue Carbon, and Biochar, detailing the complete cycle of a project—from investment to certification and commercialization—and principles such as additionality, conservative accounting, reliable MRV, permanence, and safeguards.
Remo Filleti (ICVCM) announced that all major carbon credit programs are now CCP-Eligible, with approved methodologies such as ARR, REDD+, Biochar, and efficient cookstoves, reinforcing the "two-tick" requirement to ensure integrity. He also presented the ICVCM's governance structure, with a significant presence of members from the United States (7 representatives) and Western Europe (2 representatives from the United Kingdom, Italy, Germany, Ireland, and Portugal)—in addition to voices from Asia (Pakistan, India, the Philippines), Oceania (Australia), and Latin America (Brazil).
Several other panels provided invaluable insights. We conclude below with a few more shared references and quotes we heard.
“The carbon market has been attacked for lack of compliance. And that needs to change. We want the region to be exemplary. Bring the country to the center of the world today as a tropical benchmark.”, Paulo Protasio, Fellow IETA
“The conditions of Article 6.4 risk forcing all forests out of the process. There are no naive people in this process. Every public issue must be discussed cross-cuttingly.” , Marcello Britto, Executive Director Consortium of Amazon States.
“Carbon credits are indeed the smartest way to move resources. Brazil has the greatest potential in the world. But the path is not simple, as Marcelo Britto has already mentioned. The financial community is excited about the TFFF. Brazil will make a contribution proportional to its economic relevance.” Dan Ioschpe, High-Level Champion for COP30, High-Level Climate Champions
“The regulated market did not come to kill the voluntary market and must be stimulated in the unregulated sectors” Klenize Favero, Carbon Markets Coordinator, Ministry of Environment and Climate Change Brazil. She also commented on the regulation of the sale of ITMOs, public consultation before the COP and the challenge of analyzing around 95 CDM projects by December 31, 2025, in order to migrate to the new Article 6.4 mechanism and continue generating valid carbon credits.
“Brazil's Fuel of the Future regulation is the best in the world” Ricardo Dupont, Technical Coordinator Environmental Protection, ANAC Brasil
Alessandro Bender, Coordinator of the Executive Secretariat for Climate Change (SECLIMA) of the city of São Paulo, he commented on challenges such as the 18,000 tons of daily waste, behavioral changes, and chronic problems in specific neighborhoods. For example, Brás, which generates monthly volumes of textile waste comparable to that of the Atacama in Chile, or the city center, where streets are swept up to 10 times a day, and Jardim Pantanal, which faces recurring flooding problems. He also commented on Pre-COP events as a showcase for urban solutions, new technologies, and global benchmarks for cities where 80% of the Brazilian population lives. He also referenced the Municipality of São Paulo's Climate Action Plan, PlanClima SP.
Joana Schmidt Artes, Project Manager for the São Paulo State Government shared excellent references:
2025 State Energy Plan – PEE 2050
Public hearing on the São Paulo Biomethane Origin Guarantee Certificate (until September 8, 2025)
SP Carbon Zero Award, a pre-COP effort, at Espaço Villa Lobos
“The rest of the world needs what Brazil has to offer”, David Hone, Chief Climate Change Adviser da Shell, by presenting the following unmissable materials in Workshop 5 – The 2025 Energy Security Scenarios: Brazil Leading the World to Net-Zero Emissions:
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