Brazil’s Finance Ministry on Tuesday released a preliminary proposal for phased sectoral coverage of the country’s regulated carbon market, outlining which industries will be required to report greenhouse gas emissions.
The proposal introduces monitoring, reporting and verification obligations in three phases starting in 2027, the ministry’s Extraordinary Carbon Market Secretariat said.
Phase one, beginning in 2027, includes paper and pulp, iron and steel, cement, primary aluminum, oil and gas exploration and production, refining and air transport.
Phase two, set for 2029, covers mining, recycled aluminum, electricity, glass, food and beverages, chemicals, ceramics and waste sectors.
Phase three, starting in 2031, encompasses road, water and rail transport.
Each sector will have a four-year preparation period, with the first year for monitoring plan development, years two and three for emissions monitoring, and year four for national allocation planning.
The initial phase will only require emissions reporting, with no costs, charges or reduction obligations imposed on companies.
A public consultation is planned for July, with the final version expected later this year.