O Carbon market It has law, enthusiasts and interest in the Brazilian investment industry to grow as a financial asset. But its full potential should still take a while to be reached. That’s because despite the Lei nº 15.042/2024which established the Brazilian System of Trade in Greenhouse Gas Emissions (Sbce), there are many definitions to be made.
In addition, regulations are required in the back and insurance sectors for capital to be actually moved.
“The regulated market will be implemented over the next four to six years, and a range of regulations still need to leave to become operational,” says Antonio Augusto Reis, partner of Environmental Law at the office Mattos Filho. But he believes there is a “very large potential for the financial market to participate more actively” in the subject.
The main factor has already been resolved. According to the carbon market law, credits are considered securities when negotiated in the financial and capital market. “There was a large appetite for the carbon market, but we lived in discussions about how to ‘book’ the financial asset. To the extent that the law recognizes as securities, a much greater movement from the investment point of view is expected, ”says Reis.
Guilherme Mota, partner of Environmental Law at the office Lefosseadds that the law recognizes the Securities Commission (CVM) as an authority to regulate and oversee the commercialization of carbon credits. “However, we still depend on an effective framework for the implementation of this structure,” says Mota.
In parallel, for Kings, Mattos Filho, CVM has the mission of seeking a balance between a widely regulated and simpler, counter -style market model. “It is important to mature discussions to make sense from a practical point of view.”
And these discussions are a thousand, according to Cacá Takahashi, director of the Brazilian Association of Financial and Capital Markets entities (Anbima) and Coordinator of the Anbima Sustainability Network. “It’s a very hard work and it’s a CVM responsibility, but we are working four hands with our technical teams so that we have an asset that is transacted in markets,” says Takahashi, also highlighting the importance of the regulated market to talk to the voluntary market and alignment with the regulation of other countries.
The director of Anbima says that, on the one hand, the characteristics of an asset furniture is already known. “It has to have transparency, information, registration methodology and integrity,” he describes. On the other hand, you need to understand “what to do with it.”
“Carbon credit is originated and sold within the real economy, but we need to bring it effectively to the furniture market. Now we have entered a moment of organization, with definitions of governance, operationalization and systems, ”says Takahashi.
Optimistic, he believes that definitions to operationalize the carbon market can take less time to go out than “a few years.” “When we talk about transition and climate, we are seeing the risks knock on the door brutally,” says Takahashi. Minutes before the interview with the Broadcast Investmentsthe warning of the Civil Defense of São Paulo played on cell phones to indicate the arrival of a thunderstorm – something that became frequent in all regions of Brazil. “The warnings are very evident. So I expect to accelerate in conversations. The work is not easy and should be done as best as possible and as long as possible, but looking at all the details because success depends on it, ”he says.
What is for the coming months is the expectation, since, in fact, the volume for business around the carbon market can be important. Anbima’s assessment is that Brazil should position itself as a market that already has structure and regulation for this segment, and continues to advance. The money itself comes later, but the message that “the national carbon market is solid and prepared” should be passed on, according to the association.
