MINISTRY ENVIRONMENT & CC, BRA

This award is bestowed upon Brazil's Ministry of Environment and Climate Change (MMA), recognised as the Founder of a Federal ETS in a Major Economy with Global Vision. The establishment of the Brazilian Emissions Trading System (SBCE) through federal law represents a truly landmark achievement for a major global economy, underscoring Brazil’s significant commitment to climate action.

The SBCE is distinguished by its ambitious sectoral coverage and its strategic integration of the forestry sector, a critical element given Brazil's natural assets. This integration is notably achieved through specific provisions for REDD+ credits and domestic carbon credits (CRVEs) that are carefully designed to be eligible for international transfer under Article 6 of the Paris Agreement, thereby facilitating global cooperation. A crucial element of the system's design is the strategic allocation of auction revenues, with a significant portion thoughtfully directed to the National Climate Change Fund. This also includes additional support specifically for indigenous and traditional communities, demonstrating a commitment to equitable climate transition.

This comprehensive approach unequivocally positions Brazil as a pivotal actor in the future global carbon market. It showcases a holistic national commitment to robust carbon pricing and impactful climate action, uniquely integrating strong social and environmental co-benefits into its core policy framework. The MMA’s leadership in this endeavour sets a powerful precedent for other major economies.