1. Themes
  2. Carbon Markets
  3. International Carbon Markets

International Carbon Markets

International carbon markets are primarily used for voluntary carbon credit purchases and remain a critical pathway for climate finance to reach Brazil

2030 Goals

01

Establish Brazil as a reliable and high-integrity supplier of mitigation outcomes in compliance and voluntary markets, aligned with UNFCCC Article 6 rules and environmental integrity standards.

02

Operationalize the SBCE with clear international transfer rules, enabling CRVEs to be authorized for ITMO exports without compromising Brazil’s NDC compliance.

03

Secure strategic international partnerships to link Brazilian credits with major compliance systems and long-term demand contracts.

04

Embed robust MRV, safeguards, and benefit-sharing frameworks to ensure equitable participation of indigenous and traditional communities in market benefits.

Status

No Progress

Brazil has formally committed to participate in Article 6 of the Paris Agreement under the United Nations Framework Convention on Climate Change. The country embedded this into national law in 2024 and is preparing to authorize international carbon transfers.

The Brazilian Emissions Trading System defines two tradable assets: emission allowances and verified reductions or removals. Verified reductions or removals can be authorized as Internationally Transferred Mitigation Outcomes if they meet strict methodologies, monitoring standards, and safeguards.

The Ministry of Finance and the Ministry of Environment will regulate how many credits can be transferred abroad, under which conditions, and ensure no double counting against Brazil’s Nationally Determined Contribution.

Brazil’s framework integrates REDD+ forest programs. Market-based REDD+ credits must comply with safeguards overseen by the National Commission for REDD+ and guarantee benefit-sharing, with indigenous peoples entitled to at least seventy percent of project revenues.

Brazilian companies and project developers are actively preparing exportable credits. They are working with international certification bodies such as Verra, Gold Standard, and ART TREES to validate forest conservation and restoration projects for future Article 6 transfers.

Leading Actors

Cooperation is required between these actors and audiences to drive progress foward in International Carbon Markets.

Private Financial Institutions

Itaú

Private Financial Institutions

BTG Pactual

Private Financial Institutions

Santander (CIB)

Public Financial Institutions

Brazilian Development Bank (BNDES)

Public Financial Institutions

Central Bank of Brazil (BCB)

Multilateral Development Banks

World Bank

Multilateral Development Banks

International Finance Corporation (IFC)

Multilateral Development Banks

IDB Invest

International Organizations

Reducing emissions from deforestation and forest degradation in developing countries (REDD+)

International Organizations

United Nations Framework Convention on Climate Change (UNFCCC)

Ministries

Ministry of Finance (MF)

Ministries

Ministry of Environment and Climate Change (MMA)

Ministries

Ministry of Foreign Affairs (Itamaraty)

Ministries

Ministry of Indigenous Peoples (MPI)

Other Governmental Organizations

Brazilian Institute of Environment and Renewable Natural Resources (IBAMA)

Other Governmental Organizations

Brazilian Institute of Geography and Statistics (IBGE)

Other Governmental Organizations

Comissão Nacional para REDD+ (CONAREDD+)

Supportive Stakeholders

Instituto do Clima e Sociedade (iCS)

Supportive Stakeholders

The Nature Conservancy (TNC)

Supportive Stakeholders

WWF Brasil

Supportive Stakeholders

International Chamber of Commerce Brasil (ICC)

Other Governmental Organizations

Comissão Nacional para REDD+ (CONAREDD+)

Key Milestones

Showcasing the key reform milestones for International Carbon Markets that have been addressed at global events.

View Roadmap

Brazil

Brazilian Sustainable Taxonomy announcement

View Event
  • International Carbon Markets

    Build a high-integrity pipeline of verified reductions and removals

  • Nationally Determined Contribution

    Develop sector-specific mitigation plans for agriculture and industry, addressing rising methane emissions and deploying cost-effective abatement solutions

New York, US

UN Forum on Forests (UNFF21)

View Event
  • International Carbon Markets

    Embed robust monitoring, reporting, and verification (MRV) and social safeguards across all transfers.

  • Domestic Carbon Markets

    Integrate land-use and Reducing Emissions from Deforestation and Forest Degradation (REDD+) credits with environmental integrity safeguards.

India (city TBC)

18th BRICS Summit - BRICS Leaders’ Summit

View Event
  • International Carbon Markets

    Promote private-sector export capacity and competitiveness.

  • Monetary Policy, Financial Regulation, and Supervision

    Expand climate scenario analysis and bottom-up stress tests to influence IInternal Capital Adequacy Assessment Process, governance remediation, and supervisory dialogue across major banks.

Washington DC, US

Annual Meetings of the IMF and World Bank

View Event
  • International Carbon Markets

    Secure international market linkages through strategic agreements.

  • Mitigating Currency Risk

    Deepen long-tenor BRL markets to facilitate 15–20 year financing for renewables, and adaptation projects without exposure to foreign exchange risk.

Learn More

Publications and educational material to deepen understanding of International Carbon Markets.

Article 6.2 UNFCCC

International Carbon Markets

Official page on Article 6.2 of the Paris Agreement, which governs international carbon market cooperation.

Go to Resource (opens a new window)

Opportunities for Brazil in Carbon Markets

International Carbon Markets

Fact sheet on opportunities and challenges for Brazil’s participation in international carbon markets.

Go to Resource (opens a new window)

State and Trends of Carbon Pricing 2024

International Carbon Markets

Flagship report “State and Trends of Carbon Pricing 2024,” providing global data on carbon markets and pricing instruments.

Go to Resource (opens a new window)

Related Topics