The Law Project# 528/21 establishes the Brazilian Emissions Reduction Market, which will regulate the purchase and sale of carbon credits in the country. The text is pending in the Chamber of Deputies.
The proposal regulates the main points of the new market, such as legal nature, registration, certification and accounting of carbon credits. It also sets a deadline (five years) for the government to regulate the mandatory national program for offsetting GHG emissions.
The text foresees the creation of a voluntary carbon credit market, which is intended for negotiation with companies or governments that do not have the mandatory GHG reduction targets, but wish to offset the environmental impact of their activities. They will be able to invest in projects that aim to reduce carbon emissions in atmosphere.
All GHG reduction projects and carbon credit negotiations will be registered by an electronic system, managed by the National Institute for the Registration of Climate Data, a private body supervised by the Ministry of Economy, which will appoint part of the board members.