Brazil Carbon Market MRV Proposal Sets Phased Industry Timetable

Brazil opened a consultation on phased monitoring, reporting and verification duties for its emissions trading system on 28 July 2026. The Brazil carbon market MRV proposal would start with emissions-intensive industries in 2027 and expand to chemicals, food, mining, power, waste and other sectors by 2029. Comments close on 28 August.

Brazil Carbon Market MRV Phases

The draft ordinance proposes three implementation stages. The Brazil carbon market MRV timetable would begin in 2027 for primary aluminium and alumina, integrated iron and steel, cement, oil and gas extraction, petroleum refining, pulp and paper, and domestic aviation.

Stage two would begin by 2029 for secondary aluminium, semi-integrated steel, chemicals, mining, food and beverages, waste, sewage, ceramics, glass and electricity. Domestic road, rail and water transport would follow by 2031.

In each stage, the first year would require submission of a monitoring plan. Operators would monitor emissions and removals during the second year. From the third year onwards, they would continue monitoring and submit an independently verified report covering the previous calendar year.

Thresholds And Future Compliance Details

Brazil's 2024 SBCE law allows installations emitting more than 10,000 tonnes of carbon dioxide equivalent annually to be brought into MRV. Those above 25,000 tonnes may also face an obligation to surrender Brazilian emissions allowances once the first national allocation plan applies.

The consultation does not itself determine every regulated installation, source, activity or greenhouse gas. Later measures would set those details. The draft also says a specific act must establish formats, procedures and deadlines at least 120 calendar days before the relevant obligations begin.

How Manufacturers Should Prepare

Businesses in the proposed stages should compare legal entities and sites with the listed economic activity codes, while avoiding the assumption that every activity within a code will automatically be regulated. Environmental, finance, operations and assurance teams should assess emissions boundaries, source data, controls, calculation methods and record ownership.

Companies should also examine supplier information and contract access where emissions data sit outside their direct systems. Responses to the Brazil carbon market MRV consultation can address sector sequencing, methodological readiness, verification capacity and realistic lead times with evidence.