By Abdullahi Lukman
Brazil will use a high-level visit to China next week to explore opportunities for Beijing to buy Brazilian carbon credits and advance negotiations on a bilateral carbon-market agreement that officials hope to announce before the COP31 climate summit in Turkey in November.
Brazil’s carbon market secretary, Cristina Reis, said discussions between climate and carbon-market officials from both countries would take place alongside meetings in Wuhan from September 14 to 18.
The talks are expected to examine whether China could become a buyer of internationally transferred mitigation outcomes (ITMOs), carbon credits that countries can use toward their official emissions targets under the Paris Agreement.
“If that happens, Brazil needs to be the first to offer high-integrity credits,” Reis said.
Brazil currently trades carbon credits mainly through voluntary markets, where companies purchase them to meet self-imposed emissions-reduction commitments.
However, legislation passed in 2024 provides for the creation of a regulated domestic carbon market, under which companies would purchase credits to meet mandatory
decarbonisation targets.
The new system is also expected to enable Brazil to participate in international carbon trading through ITMOs. Reis said the government initially planned to establish a system for verifying credits for international transactions between 2031 and 2035, but is now considering calls from industry to bring the timetable forward.
The potential agreement with China is being closely watched by Brazilian carbon-credit producers seeking access to growing international compliance markets. China, meanwhile, is expanding and reforming its emissions trading system, which is the world’s largest.
The China visit will also coincide with efforts by Brazil, China and the European Union to deepen cooperation among carbon-market jurisdictions. Officials from the three parties are expected to approve a work plan aimed at gradually improving compatibility and integration between their trading systems.
The coalition, launched earlier this year, currently has 11 members and is seeking greater participation from developing countries. Brazilian officials estimate that its members collectively account for about 42% of global emissions.
Ana Paula Cavalcante, Brazil’s deputy secretary for carbon-market regulation and methodologies, said mutual recognition of carbon-market assets could become possible within the next decade.
She said closer cooperation with China and the wider coalition could help expand carbon markets, attract investment to Brazil and support the country’s plans to reindustrialise around emerging technologies.
