Brazil plans to launch a regulated carbon market with the aim of combating climate change, as Latin America’s largest economy looks to reclaim its credentials as a leader on the environment.
Lawmakers in Brasília are advancing a bill that would establish a “cap-and-trade” system, in which projects that would reduce or remove carbon dioxide from the atmosphere — such as tree planting — would sell tradeable permits for companies to cover emissions. Each represents a tonne of CO₂ or equivalent.
The objective is to push polluters to decrease greenhouse gas emissions over time, in line with national goals, or else buy these permits, known as credits or offsets.
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