Brazil Carbon Credits Market Size, Share, Growth and Forecast 2034

Market Overview

The Brazil Carbon Credits Market reached a value of USD 2.7 Billion in 2025 and is projected to grow significantly, reaching USD 25.2 Billion by 2034, expanding at a robust CAGR of 28.10% during 2026-2034.

This exceptional growth is driven by Brazil's expanding sustainability initiatives, biodiversity potential, and regulatory advancements, including the establishment of a national carbon pricing system. Increasing participation from both domestic and international corporations in carbon offset trading, coupled with Brazil's strong forest conservation programs, underpins the country's rise as a global leader in the carbon credit ecosystem.

Study Assumption Years

● Base Year: 2025
● Historical Year/Period: 2020-2025
● Forecast Year/Period: 2026-2034

Brazil Carbon Credits Market Key Takeaways

● Current Market Size (2025): USD 2.7 Billion
● CAGR (2026-2034): 28.10%
● Forecast Period: 2026-2034
● The Brazilian government is developing a regulatory framework aligned with international climate commitments, including a national carbon pricing mechanism.
● REDD+ programs and forest conservation projects-especially in the Amazon rainforest-remain central to Brazil's carbon offset initiatives.
● Brazil plans to launch the "Tropical Forests Forever" fund, valued at USD 250 Billion, to finance global tropical forest preservation.
● The market is segmented by compliance and voluntary credits, project type, and end-use industry.
● Brazil's biodiversity richness, combined with global net-zero commitments, accelerates investment and market development.

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Brazil Carbon Credits Market Growth Factors

Regulatory Reforms and Policy Framework Development
As part of the Brazilian government's climate policy, Brazil plans to implement a national carbon pricing scheme, the Brazilian Carbon Market System (SBCE). This SBCE would regulate emissions from nearly 5000 businesses emitting more than 10,000 tCO2 per year and utilize compliance-based trading to ease market activity.

The system tries to help Brazil's Nationally Determined Contribution (NDC) under the Paris Agreement. A goal exists for reduction of greenhouse gas emissions by 53% from 2005 levels by 2030. Modeled from the EU ETS, the system should engage international groups and finance initiatives that reduce emissions and protect forests.

Forest Conservation and REDD+ Initiatives
Land-use programs through forest conservation have continued to be one of the primary components of Brazil's carbon credit market. REDD+ (Reducing Emissions from Deforestation and Forest Degradation) programs promote incentives toward communities and private investors to conserve and restore areas like the Amazon biome, which is the world's largest carbon sink.

Brazil announced the creation of the "Tropical Forests Forever" fund in December 2023. The fund is expected to mobilize USD 250 Billion in international finance to reward countries that preserve tropical forests. It will lead Brazil across the globe in climate mitigation and fund efforts toward sustainably managing forests and generating carbon offsets.

Corporate Net-Zero Commitments and Technological Innovation
Due to its biodiversity and renewable resources, Brazil is in a strong position to be part of the nature-based carbon credits market, with high demand for high-quality carbon credits from Brazil, driven by multinational corporations seeking to meet commitments for net-zero targets.

Satellite monitoring, remote sensing, and blockchain logging improve carbon credit verifiability and bring foreign buyers and investors to Brazil by providing a transparent, trustworthy, credible market with high-potential projects, including those that offer additional co-benefits.

Brazil Carbon Credits Market Segmentation

Type Insights

● Compliance: Credits generated and traded under mandatory environmental regulations enforced by government authorities.
● Voluntary: Credits traded voluntarily by corporations and institutions aiming to offset emissions beyond regulatory requirements.

Project Type Insights

● Avoidance/Reduction Projects: Initiatives aimed at preventing or minimizing carbon emissions, such as renewable energy and methane capture projects.
● Removal/Sequestration Projects:
○ Nature-Based: Projects involving reforestation, afforestation, and forest conservation to absorb atmospheric carbon.
○ Technology-Based: Projects leveraging carbon capture, utilization, and storage (CCUS) or direct air capture (DAC) technologies.

End-Use Industry Insights

● Power: Electricity generation and utilities using credits for emission balancing.
● Energy: Broader energy producers engaging in offset markets to meet sustainability targets.
● Aviation: Airlines purchasing credits to comply with global aviation emission standards (CORSIA).
● Transportation: Logistics and mobility sectors offsetting carbon-intensive operations.
● Buildings: Green construction and real estate developers participating in voluntary markets.
● Industrial: Manufacturing sectors reducing emissions through verified offset mechanisms.
● Others: Additional industries adopting carbon trading as part of ESG commitments.

Regional Insights

The report covers five major regions-Southeast, South, Northeast, North, and Central-West.

While specific regional market shares or CAGRs are not provided, the Southeast region, including São Paulo and Rio de Janeiro, is expected to dominate due to its concentration of corporate headquarters, financial institutions, and carbon trading hubs. The North region, encompassing the Amazon Basin, remains pivotal for forest-based carbon sequestration projects, contributing significantly to credit generation through REDD+ and restoration efforts.

Recent Developments & News

● May 2025: AgriCapture launched Brazil's first rice carbon project in Rio Grande do Sul with NatCap, introducing methane-reducing irrigation techniques and enabling farmer access to international carbon markets.
● December 2024: Brazil enacted Law No. 15,042/2024, establishing the SBCE carbon market, targeting firms emitting more than 10,000 tCO2/year and promoting regulated carbon credit trading.
● September 2024: Google purchased 50,000 metric tons of nature-based carbon removal credits from Mombak, a Brazilian reforestation startup focused on Amazon restoration.
● September 2024: Amazon and five partner firms invested USD 180 Million via the LEAF Coalition to protect forest areas in Pará state, reinforcing Brazil's role in global climate finance.

These initiatives underscore Brazil's growing influence as a hub for high-quality carbon credit projects and sustainable forest management.

However, the market ecosystem features a mix of domestic environmental startups, multinational corporations, forest conservation organizations, and global technology firms investing in climate mitigation and carbon offset projects.

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This release was published on openPR.