Carbon Market Regulation in Brazil: What Changes with SBCE and Law 15.042/2024

In December 2024, Brazil took a historic step: the sanctioning of Law 15.042/2024, which creates the Brazilian Greenhouse Gas Emissions Trading System (SBCE). After years of debate and bills under consideration, the country finally has a legal framework for its regulated carbon market.

How the SBCE works

The system will follow the cap-and-trade model: the government sets an emissions cap for regulated sectors and distributes (or auctions) emission allowances – known as Brazilian Emission Quotas (CBEs). Companies that emit below the limit can sell the surplus; those that exceed it need to buy quotas or recognized carbon credits.

Affected sectors in the initial phase

Implementation will be gradual. Priority sectors include energy, cement industry, steelmaking, chemical, pulp and paper, and domestic aviation – responsible for a large part of the country's industrial emissions.

The role of voluntary credits

The law provides for the possibility of using voluntary market credits (with limits and quality criteria) for partial compliance with regulatory obligations. This creates a bridge between the two markets and values high-quality projects already certified.

How to prepare now

Regardless of the sector, the first step is to have a robust and up-to-date GHG inventory. Companies that have already accurately mapped their emissions will be at a huge regulatory and competitive advantage when the SBCE becomes fully operational. Domani already monitors this transition with inventory solutions, emissions management, and access to the carbon market.