The Brazilian government announced that the country will issue carbon credits through conservation and restoration projects in public forests that are assigned or leased by the state for management.
On October 17, President Luiz Inácio Lula da Silva signed a decree allowing forest projects to apply international certification methods to issue credits under the Brazilian Emissions Trading System (SBCE).
Accordingly, private projects participating in public forest management will have the right to choose certification methods under the REDD+ mechanism (Reducing Emissions from Deforestation and Forest Degradation), instead of only following the national regulatory system.
According to the Ministry of Environment and Climate Change of Brazil, this certification mechanism allows carbon credits to be internationally recognized and traded on the global market, while ensuring consistency with the national legal framework. It also provides stability and legal certainty, helping attract more private investments into the country’s climate programs.
Previously, on October 15, Brazil established the Special Secretariat for the Carbon Market under the Ministry of Finance, aiming to promote sustainable development and complete the emissions reduction market by 2030. However, the agency still faces several challenges, including developing criteria for carbon credits and issuing guidance on monitoring and evaluation.
Brazil also aims to end deforestation and restore 12 million hectares of degraded forest by 2030, in line with its national commitments under the Paris Agreement on Climate Change.
Implications for the carbon market
Brazil’s move to allow the issuance of carbon credits from public forests highlights the significant potential of the forestry sector in reducing emissions and attracting climate-related investment. This approach aligns with the global trend toward achieving Net Zero, as many countries use carbon pricing mechanisms to cut emissions. The policy not only promotes the development of a transparent and efficient carbon market but also enhances the country’s credibility in the international arena.
In Vietnam, reforestation, conservation, and forest restoration projects are also considered potential sources of carbon credits, as the national carbon credit exchange is expected to start operating in 2028. Vietnam is simultaneously working to complete its legal frameworks to keep pace with other countries, developing carbon credit management mechanisms, including credits from forest projects.
CCTPA is currently collaborating with domestic and international partners to standardize the process of inventorying, verifying, and certifying credits from forest projects according to international standards, aiming to connect Vietnam’s carbon market with the global trading network.
Source: Argus Media – Brazil to generate carbon credits through forests – 21/10/2025 Read more
