Brazilian Carbon Market: New Ordinance from the Special Secretariat Defines Sectors and Phases for the Obligations

Economic sectors selected for the first phase must submit a Monitoring Plan beginning in 2027

In brief

On October 29, 2026, Ordinance SEMC/MF No. 3,199/2026 was published, defining the implementation phases for the measurement, reporting, and verification (MRV) obligations connected to greenhouse gas (GHG) emissions under the Brazilian Trading System (Sistema Brasileiro de Comércio de Emissões, or SBCE in Portuguese).

The new regulation specifies which economic sectors are included in the first phase and mandates the submission of a Monitoring Plan beginning in 2027. The glass, mining, and chemical industries, which were not included in Phase 1 in the draft submitted for public comment, are now part of this category under the recently issued Ordinance.

Further details

The Special Secretariat for the Carbon Market established, through the new Ordinance, three phases for the implementation that must be followed by the covered sectors. The sequence of obligations is as follows:

• Year 1 (A1): submission of the Monitoring Plan for review and approval;
• Year 2 (A2): measurement of GHG emissions and removals throughout the current calendar year, in accordance with the approved Monitoring Plan; and
• Year 3 (A3) and subsequent years: measurement of GHG emissions and removals in the current calendar year and annual submission of the verified GHG Emissions and Removals Report for the previous calendar year.

In order to gradually expand the coverage of the economic sectors covered, the Ordinance established the following phases:

Phase 1 (A1) beginning in 2027: aluminum; iron and steel (integrated mills); cement; oil and natural gas exploration and production; chemical industry (manufacture of adipic acid, phosphoric acid, nitric acid, ammonia, ethylene, dichloroethane, vinyl chloride, and carbon black/soot); mining (iron ore and bauxite); pulp and paper; and glass;

Phase 2 (A1) until 2029: ceramics; iron and steel (semi-integrated mills); chemical industry (other products); food and beverage industry; mining (other mineral substances); oil refining; and the electric power sector;

Phase 3 (A1) until 2031: waterway, rail, and road transportation.

Effective implementation still depends on supplementary regulations. SEMC must publish, at least 150 days prior to the start of each phase, a specific regulation governing the minimum content, format, deadlines, and procedures for submitting the Monitoring Plan and the verified Emissions and Removals Report.

Important

It is worth noting that, compared to the draft submitted for public consultation, the recently issued Ordinance retained the gradual, three-stage implementation, but altered the distribution of economic sectors and the treatment of certain activities:

• Glass, mining, and the chemical industry: Phase 1 now includes the glass, mining (iron and bauxite), and part of the chemical industry (manufacturing of certain products, such as ammonia, nitric acid, adipic acid, and ethylene). For these activities, the effective date of the obligations has been accelerated, with the Monitoring Plan now required to be submitted in 2027;
• Oil refining: This sector was moved from Phase 1 to Phase 2, with obligations set to begin until 2029;
• Air transport: previously included in Phase 1, this sector received specific treatment under the Ordinance. MRV obligations under the SBCE for the air transport sector must be met in accordance with the regulations of the National Civil Aviation Agency (ANAC), applicable to the National Sustainable Aviation Fuel Program (ProBioQAV). The Ordinance provides for the interoperability of information between ANAC and the SBCE’s managing body, without precluding compliance with the system’s laws and regulations;
• Waste and sewage: previously covered in Phase 2, these are not included in the published version of the Ordinance; and
• Classification by CNAE: The annexes list the National Classification of Economic Activities (CNAE) codes associated with each economic sector, but not all activities covered by these codes will necessarily be subject to the obligations. The managing agency has yet to define the regulated sources, facilities, and activities.