Brazil enacted the legal framework for a regulated carbon market, the Brazilian Emissions Trading System (SBCE), in December 2024. Its implementation is gradual: regulation began in 2025 and continues in stages. In parallel, the voluntary market continues to develop around forestry, land use and energy projects.
We follow this framework and analyse the legal questions it raises for companies and investors considering carbon projects or transactions in Brazil.
Legal questions we address
- The regulatory framework of the SBCE and its implementation stages.
- The legal nature of carbon credits and the requirements for their transfer.
- Land title and rights over the areas where projects are carried out.
- Purchase and sale agreements for carbon credits and the allocation of delivery and validity risks.
- Corporate and tax aspects of investment in carbon projects.
Key considerations
Operators of installations and sources emitting more than 10,000 tCO2e per year must monitor and report their emissions. Above 25,000 tCO2e per year, they must also reconcile their emissions with SBCE assets. Primary agricultural production is excluded from these obligations.
The Brazilian Emissions Allowance (CBE) represents the right to emit one tonne of CO2e. The Certificate of Verified Emission Reduction or Removal (CRVE) represents one tonne reduced or removed under an accredited methodology and registered in the SBCE. Voluntary-market credits may be used in the regulated market as CRVEs, up to the limit set in the national allocation plan.
Regulation of the system began in 2025 and is proceeding in stages. Credit purchase agreements signed now should specify the applicable standard and the consequences if the credits are not recognised under the future rules.
How the work is organised
Carbon projects depend on land, environmental and contractual questions that are often treated separately. The analysis brings them together from the start, together with the technical certifiers and consultants involved in the project.
Main legal framework
Law 15,042/2024 (Brazilian Emissions Trading System, SBCE) and its regulations
Information updated in November 2026. General information; it does not constitute legal advice.