Federal government publishes rules on structuring the carbon market and forestry regulation

In brief

The federal government has published two decrees relevant to the climate agenda in recent days, focusing on the institutional structuring of the regulated carbon market and the regulation of forestry concessions.

More details

On October 15, Decree No. 12.677/2025 was published, creating the Extraordinary Secretariat for the Carbon Market within the Ministry of Finance. The new secretariat takes over, on a temporary basis, the competencies of the managing body of the Brazilian Emissions Trading System (SBCE) provided for in Law 15.042/2024.

The new secretariat will be responsible for preparing studies and projections on decarbonization and economic impacts; coordinating climate and regulatory policies; holding public consultations and liaising with national and international entities; regulating accreditation and compliance assessment processes; and promoting the dissemination of information on the SBCE.

The structure will have two sub-secretariats: Regulation and Methodologies, and Implementation. The decree also includes the Undersecretariat for Ecological Transformation, linked to the Secretariat for Economic Policy, with duties aimed at formulating public policies for the green transition and low-carbon economy.

On October 16, Decree No. 12,779/2025 was published, amending Decree No. 12,046/2024, which regulates the management of public forests. The new wording allows the concessionaire to choose the carbon project certification methodology in forest concessions for sustainable management or restoration, if the National REDD+ Commission has not issued specific rules by the time the calls for tenders are published.

The decree, however, does not guarantee automatic recognition of the credits as Verified Emissions Reduction Certificates (CRVE), nor their use for international transfer of mitigation results, in accordance with Law 15.042/2024.

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