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On October 16 and 17, 2025, the Brazilian Federal Government took new steps toward implementing the Brazilian Greenhouse Gas Emissions Trading System (SBCE) and promoting carbon markets in Brazil.
Decree No. 12,677/2025 was published, creating the Extraordinary Secretariat for the Carbon Market (the "Extraordinary Secretariat") within the Ministry of Finance, which will temporarily act as the managing body of the Brazilian Emissions Trading System (SBCE) until the creation of the future regulatory agency provided for in Law No. 15,042/2024.
The Extraordinary Secretariat will be responsible for the initial implementation measures of the SBCE, including regulating the market and its instruments, defining monitoring methodologies and the activities and facilities subject to the system, and regulating the accreditation processes for inspection bodies.
To support Secretariat's functions, the Decree also creates:
- The Subsecretariat for Regulation and Methodologies, responsible for assisting in the drafting of SBCE regulations and proposing criteria for the accreditation and de-accreditation of methodologies; and
- The Subsecretariat for Implementation, responsible for creating and managing the SBCE Central Registry, defining rules for monitoring, reporting and verification (MRV), as well as establishing mechanisms for interoperability with other national and international emissions trading systems.
As a transitional solution, the Decree excludes from the Secretariat's mandate those competencies reserved for the final stages of the SBCE's implementation, such as:
- Drafting and submitting the National Allocation Plan (PNA);
- Implementing the PNA for each commitment period;
- Issuing Brazilian Emission Allowances (CBEs);
- Managing the CBE auction platform;
- Receiving and assessing GHG emissions and removals reports;
- Periodic reconciliation of obligations; and
- Investigating infractions and imposing sanctions.
Decree No. 12,677 also creates the Subsecretariat for Ecological Transformation, responsible for proposing strategies to strengthen economic policies aimed at ecological transition and sustainable development. This unit, however, will not perform management functions within the SBCE.
Subsequently, Decree No. 12,678 was also published, creating the Department of Market Instruments and REDD+ within the Ministry of Environment and Climate Change, as well as designating the National Secretariat for Climate Change as Brazil's National Designated Authority (NDA) under the Paris Agreement. The new Department's responsibilities include developing guidelines for the formulation and implementation of initiatives related to carbon pricing instruments, providing technical and operational support to the National Commission for REDD+ (CONAREDD+), and assisting the NDA in performing its functions.
Finally, Decree No. 12,679 was issued, amending the Public Forest Concessions Law to allow concessionaires to choose the methodology for certifying carbon projects within their concessions, while CONAREDD+ has not yet enacted specific rules on the matter.
Issued just days before COP-30, which will begin on November 10 in Belém, these Decrees represent an important step toward implementing the Brazilian Emissions Trading System, while ensuring the continuous development of voluntary carbon markets.
The Environmental, Climate Change and Sustainability Practice of Tauil & Chequer Advogados in association with Mayer Brown is available to provide further clarification on this matter.
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