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The Chamber of Deputies approved a bill that establishes a regulated and voluntary system for offsetting greenhouse gas emissions.

From the Editors

 

Wednesday, November 20, 2024

 

Updated at 08:20

 

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The Chamber of Deputies approved this Tuesday, the 19th, a bill that regulates the carbon market in Brazil. The text establishes rules for a regulated market and a voluntary market for titles representing the emission or removal of greenhouse gases, with the aim of reducing emissions and aligning the country with global environmental goals. The bill now goes to the president for sanction.

 

The  SBCE -  Brazilian Greenhouse Gas Emissions Trading System will be implemented in five phases over six years. Companies with high greenhouse gas emissions will have mandatory reduction targets and will be able to purchase  CBEs -  Brazilian Emission Quotas or  CRVEs -  Verified Emission Reduction or Removal Certificates to offset any excess emissions.

 

The voluntary market will be aimed at companies and individuals who wish to contribute to the climate strategy without legal obligation. This model is considered an opportunity for Brazil, especially due to the country's forests, which have high potential for generating carbon credits.

 

Regulated sectors and targets

 

The initial obligations will apply to activities that emit more than 10,000 tons of carbon dioxide equivalent (tCO2e) per year. Operations above 25,000 tCO2e will have to submit annual emissions reports and reconcile the emission and capture of gases.

 

However, the agricultural sector was excluded from the regulation, considering only direct emissions. The activity, which represents around 27% of national emissions, will have incentives to adapt voluntarily.

 

 

Carbon market to be regulated in Brazil with targets for gas emissions. 

International impact

 

Congressman Aliel Machado, the rapporteur of the text, highlighted that regulating the carbon market reduces economic risks for Brazil. International mechanisms such as the  CBAM -  Carbon Border Adjustment Mechanism, which taxes products with high emissions exported to the European Union, could harm Brazilian exporters if they do not adopt decarbonization standards.

 

Tax benefits and legal reserve

 

The taxation of profits from carbon credit trading will follow the Income Tax legislation. However, the revenues will not pay PIS and Cofins, and expenses with certification and emission reduction may be deducted in the calculation of IRPJ and CSLL.

 

The text also provides that environmental conservation activities, such as the recovery of Permanent Preservation Areas (APPs) and legal reserves, may generate carbon credits. In addition, insurance companies and supplementary pension institutions must acquire a minimum of 1% of environmental assets per year for their technical reserves.

 

Sustainable future

 

Congressman Nilto Tatto, coordinator of the Environmental Parliamentary Front, classified the project as essential to confront the climate crisis. Congressman Chico Alencar highlighted advances in the inclusion of consultation rights for indigenous peoples and in the fair distribution of resources.

 

The regulated carbon market, considered a milestone in Brazil's environmental commitment, is expected to bring significant changes to emissions management and boost a sustainable economy.

 

Despite this, the text faces criticism for excluding sectors such as agriculture and the complexity of implementation within the expected deadlines.

 

With information from the Chamber Agency.

 

 link: https://www.migalhas.com.br/quentes/420194/segue-para-sancao-projeto-que-regulamenta-mercado-de-carbono-no-brasil