Brazilian ETS (SBCE): Public Consultation | Monitoring, Reporting, and Verification (MRV) and Monitoring Plan
Summary
A public consultation is open until August 28, 2026, regarding the draft resolution that establishes the implementation steps for the obligations to submit the Monitoring Plan and to conduct effective Monitoring, Reporting, and Verification (MRV) of greenhouse gas (GHG) emissions under the Brazilian Greenhouse Gas Emissions Trading System (SBCE, in Portuguese).
In more detail
The Brazilian Ministry of Finance, through its Special Secretariat for the Carbon Market (SEMC), submitted for public consultation on July 28, 2026, a proposal for a resolution that defines the initial scope and sectoral phasing of the Monitoring, Reporting, and Verification (MRV) obligations under the SBCE. The comment period ends on August 28, 2026.
The draft outlines the following stages for implementing MRV obligations:
- Year 1 (A1): submission of the Monitoring Plan to the SBCE’s managing body for review and approval, in accordance with the managing body’s specific regulatory act;
- Year 2 (A2): effective monitoring of GHG emissions and removals throughout the current calendar year, in accordance with the approved Monitoring Plan; and
- Year 3 (A3) and subsequent years: actual monitoring of GHG emissions and removals throughout the current calendar year, in accordance with the approved Monitoring Plan, as well as submission to the SBCE’s managing body of the verified GHG Emissions and Removals Report, covering emissions from the previous calendar year.
In addition, the implementation of MRV obligations is expected to take place gradually, in three phases, progressively covering the economic sectors subject to the SBCE:
- Phase 1 – A1 starting in 2027: aluminum (primary, including alumina production), iron and steel (integrated mills), cement, oil and natural gas exploration and production, oil refining, pulp and paper, and air transportation;
- Phase 2 – A1 by 2029: aluminum (secondary), iron and steel (semi-integrated mills), the chemical industry, mining, the food and beverage industry, waste, sewage, ceramics, glass, and the electricity sector; and
- Phase 3 – A1 by 2031: waterway transportation, rail transportation, and road transportation.
The public consultation marks the first stage of the SBCE regulatory process. Input from the private sector is essential to support decisions that ensure the development of a system capable of promoting decarbonization in a cost-effective manner, while strengthening the competitiveness of the Brazilian economy.
For more information, click here to access the full public consultation.
